I have a balance I’d like to transfer, because... - Balance Transfers Questions

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Credit Card Applications » Questions » User Questions » Balance Transfers » I have a balance I’d like to transfer, because it’s at a high interest rate. But...

I have a balance I’d like to transfer, because it’s at a high interest rate. But the card I’m considering applying for charges a balance transfer fee. Should I avoid it or go ahead?

Answered on

As a general rule, people don’t like paying fees. But sometimes, fees are worth paying. In the case of a balance transfer, it’s often well worth paying a 3% fee on the balance, if it’s a significant amount, and if your interest rate, or APR, is very high. You can do the math yourself, but it’s even easier to find an online debt calculator that will do it for you. You can enter how much you owe, what your interest rate is, and how much you pay per month, and you’ll find out exactly how long it will take you to pay off the debt, plus how much interest you’ll pay over the life of the loan. Then you can calculate the 3% balance transfer fee and look at the difference. Another option is to search for a no-fee balance transfer offer. They are not as plentiful as they once were, but if you have excellent credit, you can still find them out there if you really look.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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Intro APR on Balance Transfer: 0% (18 months)
For Excellent, Good Credit
Intro APR on Balance Transfer: 0%* (21 months on Balance Transfers*)
For Excellent, Good Credit
Intro APR on Balance Transfer: 0%* (18 months on Balance Transfers*)
For Excellent, Good Credit

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