Credit Card Fee Transfer

What is a Credit Card Fee Transfer and How Does it Affect You?

The Fine Print

When transferring a balance from one credit card to another, be careful to read all contractual language and find print. Often times, even with the most upstanding credit card companies, it is possible to sign on for something you weren't fully aware of, as many fees and other financial or related obligations are often embedded in heavily worded language in an obscure part of a wordy and lengthy contract. Although it may be a hassle, it is worth the extra time and effort to educate yourself as to all the terms of the contract you are agreeing to when you transfer a balance from one credit card to another. It does not matter if you are transferring the balance to a completely different card or to a different card within the same company. You should still always be aware of what you are agreeing to.

Fees

In almost all cases, when transferring a balance from one credit card to another, even if it is within the same company, a certain transfer fee with apply. This is not usually a fee that has to be paid up front but is rather applied to the balance you transfer over. While this is generally a nominal fee, it may be quite substantial depending on the terms of the credit card company. Typically, a credit card company will charge a fee that is based on a percentage of the amount that you transfer over to the new card.

There is usually a cap on this fee. For example, a credit card company may charge you 10% of the overall balance up to $250.00. So, on top of transferring the balance, you will also be responsible for paying back the additional money you were charged for the transaction. The transfer fees will vary by company, which is why it is important to educate yourself as to what the transfer is really costing you in the long run.