Quick Answer: What Is A Balance Transfer Fee?

Are there any credit cards with no balance transfer fee?

Best No Balance Transfer Fee Credit Cards The best credit card with no balance transfer fee is SunTrust Prime Rewards Credit Card because it has an introductory balance transfer APR of 3.25% (V) for 36 months, a balance transfer fee that’s $0 for the first 60 days, and a $0 annual fee..

Why are balance transfers bad?

A balance transfer may lead to your scores dipping in the short term. That’s because you’ll decrease your average account age and increase the credit utilization on a single card. But your credit could rise again with careful use.

Is a balance transfer fee a one time fee?

A balance-transfer fee is a one-time charge to transfer a balance from one lender to another, often 1% to 3%. Balance-transfer fees are common for credit cards that offer a low introductory interest rate.

Is there a downside to balance transfers?

Cons of a Balance Transfer You could end up with a higher interest rate if you don’t qualify for a promotional interest rate because your credit score, income, or existing debt. … Balance transfers can get expensive considering the balance transfer fee and the annual fee if the new credit card has one.

What is a low interest rate balance transfer?

A balance transfer is the process of transferring high-interest debt from one or more credit cards to another card with a lower interest rate. This will help you pay off debt faster, since more of your payments will go toward the principal balance each month instead of toward interest charges.

Are balance transfer fees monthly?

The challenge: Transferring a balance means carrying a monthly balance, and carrying a monthly balance (even one with a 0% interest rate) still involves making on-time payments of at least the minimum due on the transfer and for any new purchases.

What are the best 0% balance transfer credit cards?

Best Balance Transfer Cards Compared:Credit CardBest For0% Balance Transfer Intro APR PeriodBank of America® Cash Rewards Credit Card for StudentsStudent Balance Transfer12 monthsCiti® Double Cash Card – 18 month BT offerRewards18 monthsWells Fargo Platinum cardGood Credit18 months on qualifying balance transfers3 more rows

How much will it cost in fees to transfer a $1000 balance to this card?

A balance transfer fee is usually charged as a percentage of the balance you transfer. (For example, if you transfer a $1,000 balance and there is a 5 percent balance transfer fee, you’ll pay a $50 fee for the transfer.

Does a balance transfer count as a payment?

A balance transfer does count as a payment to the original creditor to which you owed the balance. The issuer of the balance transfer card will submit payment to the old creditor for the amount of the transfer. … Any additional payments you make will be deducted from the balance you transfer.

How does balance transfer fee work?

A balance transfer fee is a fee that’s charged when you transfer credit card debt from one card to another. It’s usually around 3%–5% of the total amount you transfer, typically with a minimum fee of a few dollars (often $5–$10). The fee is charged by the company that issues the credit card you transfer the debt to.

Is it a good idea to do a balance transfer?

But in general, a balance transfer is the most valuable choice if you need months to pay off high-interest debt and have good enough credit to qualify for a card with a 0% introductory APR on balance transfers. Such a card could save you plenty on interest, giving you an edge when paying off your balances.

How do you avoid balance transfer fees?

The only way to avoid a balance transfer fee is to find a card that doesn’t charge one. Such offers are generally reserved for people with good to excellent credit. If you’re not sure you fit that description, check your credit score to find out.

Do balance transfers hurt your credit?

The balance transfer itself doesn’t influence your credit score. But keep in mind that credit scores may look at your per-card credit utilization as well as your overall utilization. So if the credit limit on your new balance transfer credit card is lower than the limit on your old card, your score could be affected.

Do you pay interest on a balance transfer fee?

(Balance transfer fees typically range from 3% to 5% of the amount transferred.) Even after the fee, you’ll come out way ahead by not paying interest for a year, as long as you put about $415 per month toward your $5,000 balance so that it’s paid in full by the end of the promotional period.

What’s the catch with balance transfers?

But there’s a catch: If you transfer a balance and are still carrying a balance when the 0% intro APR period ends, you will have to start paying interest on the remaining balance. If you want to avoid this, make a plan to pay off your credit card balance during the no-interest intro period.

Can you still use your credit card after a balance transfer?

After the balance transfer Cut up your old credit card so you can’t use it, but think twice before you close the account right away. Doing so will have a negative impact on your credit score by increasing your debt-to-credit ratio.

Is it smart to do balance transfers?

Still, if you are able to find a new credit card with a very low interest rate, a low or no balance transfer fee, a credit limit high enough to accommodate your previous balance, and an introductory period long enough to pay off that balance before the rate increases, then a balance transfer can be a good deal.

Can I transfer someone else’s balance?

Is it possible to do a balance transfer from someone else’s card? Yes, but only some providers let you transfer another person’s balance to a credit card in your name. … Only you (the person taking on the balance) can request the transfer. The provider will not allow the other person to make the transfer.