Balance Transfer Fees- What to Look For

What exactly are those balance transfer fees? If you've been in the market for a new credit card offering balance transfer, you may have also been hearing about certain fees that come with the card. How much are these fees and can they be avoided? Is the card worth the balance transfer fee? These are questions you need to research before selecting the card that will be the most beneficial to you.

Balance transfer credit cards
Balance transfer credit cards can be a great way to clean up your credit while lessening your credit card debt if you have numerous credit cards with high monthly payments. Balance transfer credit cards allow you to take balances from your other credit cards and transfer them onto your new credit card. The benefits of this are usually lower interest rate and one monthly payment on your new credit card as opposed to several monthly payments. In addition, many of these credit cards feature low interest or 0% introductory APR on transferred amounts for several months, sometimes up to a year or more.
Credit cards that offer 0% intro APR on balances give the borrower the opportunity to pay off these old debts without having to pay interest. The amount of money you can save on cards such as this can add up to quite a substantial amount. You do need to be aware, however, of all the fine print and terms & conditions with these cards so you know how long you will have 0% interest and what the interest will be after the introductory period is over.
What about Balance Transfer Fees?
Before you jump at the first balance transfer credit card offer you see, make sure you understand all the conditions and requirements of the card. You may be charged a fee to transfer these balances. While not all these cards will charge you a transferring fee, many cards will charge you a certain percentage of the balances you're transferring. For instance, if you're transferring a $2,000 balance onto a new card that charges a 3% transfer fee, you are going to be charged a $60 fee. Other credit cards may not charge a percentage but may charge a flat fee for the transfer (i.e. $50 per transfer).
Not all credit cards will charge this transfer fee. Some of the companies that do charge this fee may offer certain promotions or special deals that will waive the transfer fee. Making sure you know what you'll be paying is very important so you don't find out later that the credit card you thought was so good is eating you up in fees. Credit cards such as these offer you convenience but can also help you financially if they're used wisely.
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