What is a balance transfer fee?
A balance transfer fee is a fee that is charged when one credit card balance is moved to another credit card. The fee is usually a percentage of the total balance that is being transferred, and is most commonly three percent. In Washington, the maximum amount that a credit card company can charge as a balance transfer fee is $5.00 or five percent of the transferred balance, whichever is greater. Balance transfer fees are in place to discourage credit card debt, as they make it more expensive to move high balances from one card to another. Although balance transfer fees can be annoying, they can also be helpful because they can help to prevent people from getting into too much credit card debt. Therefore, it is important for people to consider the costs associated with a balance transfer before deciding to take advantage of it.
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