Important aspects of balance transfer cards customers need to be careful of

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » Important aspects of balance transfer cards customers need to be careful of

Important aspects of balance transfer cards customers need to be careful of


Updated: February 5, 2016

By
Add to Favorites:

There was a time during the economic crisis when customers were not granted balance transfer credit cards. Whatever cards were already approved also started being closed. In fact, it was rare to find a balance transfer deal where the introductory period was longer than 6 months. Now with the economic crisis subsiding to a brief extent, a lot of credit card customers are indeed getting good balance transfer deals. However, there are quite a few caveats as far as these balance transfer deals are concerned. Here are some of them.

The balance transfer fee

The average balance transfer fee these days is around 4-5%. However, there are a couple of Citibank cards which are offering balance transfer deals which are as low as 3%. Apart from these cards the standard industry average is as high as 5%.the balance transfer fee can be quite high and if your balance amount is as high as 3000 dollars, with a transfer fee of 5% you are looking at a substantial amount of 150 dollars. This balance transfer eats into the savings which the customer was hoping to make, therefore credit card customers have to be really careful about what transfer fee they are getting.

The initial down payment required

There are quite a few problems as far as balance transfer deals are concerned and one of them is the initial down payment which you might require to pay before you can get the new card. If this is a hefty amount of about 20% of your total balance, then you might need to pay down a huge amount even before you get the benefits of the balance transfer card.

Annual fees

What the card issuers usually lose from their revenues in terms of the interest on the outstanding balance, they more than make up through various types of fees. This may include a hefty annual fee to go with the balance transfer fee. Customers have to inspect the fine print carefully before they take a new account.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading
Dashlane: Password Management and Shopping Ease in One Simple Product

Dashlane: Password Management and Shopping Ease in One Simple Product

By Angela Rose, Posted: May 3, 2017

Are you terrible at remembering passwords? Are you so terrible, in fact, that you often use the same one for multiple websites? If so, you’re not alone. Continue reading
SoFi Making Lending Social

SoFi Making Lending Social

By Dar Dowling, Posted: April 26, 2017

Since 2011 SoFi, a San Francisco based online lending company, took the lending industry by storm, when they became the first online lender giving people access to affordable student loan refinancing. Continue reading