Glossary
Balance transfer fee
A balance transfer fee is the charge for moving a balance to a credit card, usually 3% to 5% of the amount transferred, often with a $5 minimum, added to the new card's balance.
On $5,000, a 3% fee is $150 and a 5% fee $250. It is charged once, when the transfer posts. Some cards charge a lower fee for transfers made in the first months.
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Related terms
- Balance transferA balance transfer moves debt from one credit card to another, usually to a card with a 0% or low intro APR, in exchange for a transfer fee of typically 3% to 5% of the amount moved.
- Intro APRA low or 0% interest rate a credit card charges for a set time after you open it, on purchases, balance transfers or both, before the regular APR applies.
Sources: CFPB: Regulation Z, 12 CFR 1026.53