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Balance Transfer Fee |
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WIKI ANALYSIS| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
Balance Transfer Fee is the fee charged by a lender when an outstanding balance is transferred from one credit card to another.
It is charged by the lender taking on the debt, usually in exchange for a promotional APR, such as 0% for 12 months.
This is generally in the range of 3%[most cards issued by Citi Bank, Chase Manhattan Bank, etc,.] to 5% [Discover, Diners Club etc,..]. Though these really depend on any special offers that the customer may have.
In the past, it was common for credit card issuers to place a cap on balance transfer fees, such as 3% or $75, but in light of recent legislative changes, it's now quite common to see no maximum fee.
"Generally there is a minimum amount you must pay to transfer a balance, such as $10, assuming it’s not a no fee balance transfer offer." [1]
However, there are occasionally no fee balance transfer offers, where no balance transfer fee is charged. Of course, these have become much less common post-economic crisis.
It's also possible to get the balance transfer fee waived, though you'll need to convince the credit card issuer.
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