See Balance Transfer Fee Update for late July Changes in balance transfer fees.
Balance transfer fees edged up in July, mainly due to a fee increase from Citibank. Citibank, which had been charging 3% balance transfer fees, increased the fees on most of their cards to 4%. Despite this slight increase, 0% balance transfer deals remain strong.
Citibank continues to offer a 0% Intro APR for 18 months on balance transfers with the Citi Platinum Select Card. Although the balance transfer fee increased to 4% in July, this offer would still enable a person with $5,000 in credit card debt at a 14% rate to save $1,000 in interest during the 0% period. Some of Citi’s other cards, such as the Citi Dividend Card, also carry 4% balance transfer fees but have shorter 0% periods.
The Citi Diamond Preffered card charges a 3% balance transfer fee, but only offers a 0% APR for 12 months. For most, paying an extra 1% to get 6 additional months at 0% is worthwhile, which make the Platinum Card a superior deal.
Discover balance transfer fees continue to range between 3 and 5%. Cards with a 3% fee only carry 0% rates for 6 months and provide little value to consumers. The Discover More Card, which now offers a 0% APR for 15 months on balance transfers, charges a 4% online balance transfer fee (5% if you transfer offline.) This is the best balance transfer offer from Discover and perhaps the best offer overall, as Discover is the most customer friendly of the major credit card companies.
Chase continues to offer varying fees on balance transfers ranging from 3% to 5%. The Chase FreedomSM Visa, which offers a 0% APR for 12 months on balance transfers, charges a 5% balance transfer fee. SlateSM from Chase offers a 0% APR on balance transfers for either 6 or 12 months, based on your application, and charges a 3% fee. However, applicants run the risk of getting approved and only offered a 0% rate for the shorter 6 month period, making this a risky card for balance transfers.
The Capital One Platinum Prestige and the Capital One Platinum card continue to charge 3% transaction fees on 0% balance transfers that last just about 1 year. A number of other Capital One cards offer no fee balance transfers, but do not offer 0% rates. The lowest interest rate of the no balance transfer fee cards is 13.9%-hardly an incentive to save on fees.
Bank of America continues to charge 4% balance transfer fees on relatively short duration balance transfers that last either 7 or 10 months. Lastly, American Express is not currently marketing a 0% balance transfer deal.
For more information on current balance transfer offers, please see the main section of Smart Balance Transfers where you can compare credit cards and apply online.
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