Skip to content

Why have I been charged a balance transfer fee

Here are several cards without transfer fees, 0% APR, and something with transfer fees after an introductory period.
The Wings Visa Platinum card is most effective when you can afford to pay down your transferred credit card balances within a year.
If this is you, transferring a balance to the Wings Visa Platinum means you’ll steer clear of the balance transfer fee charged by other cards.

It is usually if you’re disciplined about paying off the balance prior to the promotional APR period ends.
Balance transfer fees can add to the total of your debt that you must repay.
If you’re considering a balance transfer, it’s vital that you know how the fee works.
Assuming you transferred the entire balance from your own old card, that card would will have a $0 balance.
The balance on your own new card would reflect the total amount transferred, along with the balance transfer fee.
Offer pros and cons are determined by our editorial team, based on independent research.

Fortunately, the total amount transfer fee is charged once you make the transaction; you don’t have to be worried about any ongoing fees.
Balance transfer fees may apply when combining charge card balances.
Knowing how to calculate the fee can help you estimate the expense of transferring balances.
Generally, the savings from reduced interest will outweigh the total amount transfer fee, as long as you pay back the transferred balance prior to the introductory rate expires.
Before applying for a balance transfer card, create and invest in a plan to repay your balance before your interest levels increase.

  • Below are a few balance transfer cards with long 0% intro APR offers that could be a good match for your needs.
  • The Wings Visa Platinum card charges no fee to transfer a balance and make the most of its 12-month 0% APR promotion.
  • Interest rates tend to be lower than other types of loans and bank cards, which allows you to save money on interest.
  • This compensation may impact how and where products appear on this site, including, for instance, the order where they may appear within listing categories.
  • A balance transfer is really a transaction that typically involves moving debt in one card to some other — ideally to 1 with a significantly lower interest.

There are many credit cards offering 0% APR introductory financing for balance transfers.
Among these offers, the two most important terms to consider are the length of the promotional financing period, and the total amount transfer fee.
The following cards, which don’t charge balance transfer fees, offer intro APRs on transfers of balance for a year, together with very reasonable interest levels after the promotional periods end.
There are a couple of cards available that don’t charge balance transfer fees.

Table Of Contents

Enjoy the convenience of earning cash back with Chase Freedom® or Chase Freedom Unlimited®.
Explore the world and earn premium rewards with Chase Sapphire Reserve® or Chase Sapphire Preferred®.
Debt consolidation methods to bring all of your balances to an individual bill & it’s rather a useful solution to manage your financial troubles.
A balance transfer is a type of credit card transaction that moves a balance from one credit card to another.

Finally, you can look at cardholder benefits such as travel cover and shopping protection, and this can be extremely valuable.
The charge card industry is incredibly competitive, and credit card providers will go to great lengths to acquire new customers.

Do All Bank Cards Charge A Balance Transfer Fee?

That’s because multiple new requests for credit can be seen as a sign of possible financial distress.
For example, for those who have a $5,000 outstanding balance, and you also transfer it to a fresh card that offers 15 months of interest free financing on balance transfers.
This transfer has the potential to save the cardholder hundreds of dollars in interest charges over that time, even when you consider a 3% or perhaps a 5% balance transfer fee.

  • The Ascent is a Motley Fool service that rates and reviews essential products for the everyday money matters.
  • Editorial content from The Ascent is separate from The Motley Fool editorial content and is established by a different analyst team.
  • For example, say you complete a balance transfer from Card A to Card B. You will be charged a balance transfer fee by Card B but not by Card A.
  • Be sure to focus on both fee for transferring the balance along with the APR you will be charged on the transferred balance when you compare credit cards.

of that, personal credit card debt can be very difficult to obtain out of.
A way to avoid spiraling credit card debt is to execute a balance transfer on a card having an introductory 0% APR offer, but this is not a sustainable practice.
Typically, your credit card issuer will charge a balance transfer fee when you transfer debt from one credit card to some other.
These fees aren’t optional and they’re necessary to make the most of balance transfer offers, most of which let you like a 0 percent intro APR for a limited time period.
To choose Buy Side from WSJ’s Best Balance Transfer CHARGE CARD, we looked for no-annual-fee bank cards offering transfers of balance for new customers with 0% APR promotions.
We preferred credit cards with longer balance transfer promotional periods and lower balance transfer initiation fees.

Credit Card

If the balance transfer fee is greater than the amount of interest you’ll have paid on the existing credit card, transferring the balance isn’t worth it.
You can use credit cards payoff calculator to estimate the amount of interest you’ll pay under your present credit card terms.

If you’re constantly opening new cards, for instance, this may cause your credit history to drop.
If you’re moving balance to one or even more of one’s other existing cards with a lower interest rate, this might not have a direct effect on your credit history.
They may positively impact your credit history if you open a fresh card with a minimal APR and make an effort to lessen your debt.
Also beware, if you opt to move debt from multiple credit cards, you may be charged a fee for each balance you transfer.