LIVE
30Y FIXED6.85%↑ 0.02·15Y FIXED6.12%↓ 0.01·REFI 30Y6.78%↑ 0.01·HELOC9.20%0.00·JUMBO 30Y7.05%↑ 0.03·HYSA TOP4.85%↓ 0.05·12M CD5.10%0.00·24M CD4.85%↓ 0.02·5Y CD4.40%↑ 0.01·MMA TOP4.65%0.00·AUTO 60M NEW7.10%↓ 0.02·AUTO 60M USED8.45%↑ 0.04·PERSONAL EXC.8.20%0.00·10Y TREASURY4.32%↑ 0.01·30Y FIXED6.85%↑ 0.02·15Y FIXED6.12%↓ 0.01·REFI 30Y6.78%↑ 0.01·HELOC9.20%0.00·JUMBO 30Y7.05%↑ 0.03·HYSA TOP4.85%↓ 0.05·12M CD5.10%0.00·24M CD4.85%↓ 0.02·5Y CD4.40%↑ 0.01·MMA TOP4.65%0.00·AUTO 60M NEW7.10%↓ 0.02·AUTO 60M USED8.45%↑ 0.04·PERSONAL EXC.8.20%0.00·10Y TREASURY4.32%↑ 0.01·
Fintiex
Get started
Glossary term

Balance Transfer Fee

What the balance transfer fee is, how it is calculated, when it is worth paying, and how to find cards with no fee.

What is a balance transfer fee?

A balance transfer fee is a one-time charge you pay when you move existing debt from one credit card to another. It is calculated as a percentage of the amount being transferred.

The most common fee is 3% to 5% of the transferred amount, with a minimum charge of $5 to $10.

Example: You transfer $5,000 of debt to a new card with a 3% transfer fee. The fee is $150. That $150 is usually added to your balance on the new card, not billed separately.

Why the fee exists

Balance transfer offers are a customer acquisition tool for issuers. They waive or reduce interest to bring in new customers with existing debt. The transfer fee is how they make sure the product is not completely free to the customer. Even at 3%, the issuer earns enough to cover the risk on the promotional 0% period.

When the fee is still worth it

The math almost always favors paying the fee if you have high-interest debt.

Consider $5,000 at 22% APR for 18 months. Paying only the interest each month would cost about $1,650. A 3% transfer fee costs $150 upfront and drops your interest to $0 during the promo period. Net savings: roughly $1,500.

The fee stops being worth it when:

  • The promo period is too short to make a real dent in your balance
  • You cannot get approved for a high enough credit limit to transfer what you owe
  • You are likely to use the new card for additional spending and carry a new balance

Cards with no transfer fee

A small number of cards waive the balance transfer fee entirely for a limited window after account opening, sometimes 60 days. These are rare and often require good credit. If you find one with a 0% APR promo and no fee, that is the best possible deal for transferring debt.

Use the balance transfer calculator to see exactly how much a fee compares to the interest you would otherwise pay.

Browse more terms

The full A-Z is one click away.

30 personal finance and credit card terms, defined in plain English with worked examples.

Back to glossary →Read the guides