Credit card companies love to hide details in the fine print.  However, all companies are required to fully and clearly disclose all rate and fee information to applicants.

When you’re getting ready to apply for a balance transfer card, there is one very important disclosure to look for:  the balance transfer fee.  While different credit cards disclose this information in different ways, you will generally find information on balance transfer fees in the “Other Fees” section of the terms and conditions.

Once you’ve located this section, carefully review the specifics.  In total, there are three different possible fee structures.  The best, and most difficult to find, is a statement that there are no balance transfer fees. 

The most common balance transfer fee disclosure generally states, “ BALANCE TRANSFER TRANSACTION FEE: 3.0% for each balance transfer made under this offer, with a minimum of $10 and a maximum of $75.”

Notice that a maximum fee is clearly stated.  The third possible fee disclosure will look very similar to the one cited above.  However, there will be no notice of a maximum fee.  If there is no stated maximum fee, you will be charged a full 3% of the balance you transfer.  This means that a $10,000 balance transfer would cost $300, as opposed to $75.

If possible, we recommend finding a credit card that charges no balance transfer fees.  We list every available no fee balance transfer offer on our website.  If you cannot get approved for a no fee balance transfer card, we strongly encourage you to avoid a credit card that does not cap the maximum fee at $75.

In our opinion, the best type of balance transfer is one that offers a 0% APR and charges no balance transfer fees.  As we’ve written many times before, balance transfer fees are a nuisance.  If you are only transferring a balance from one credit card, the maximum balance transfer fee you will incur is the lesser of 3% or $75.  However, if you transfer three balances of $2500, you’ll end up paying $225 in balance transfer fees. 

 Now, the savings one gets from transferring a $7500 balance from a 14% credit card is over $1000.  However, if you pay balance transfer fees, the amount would be reduced to around $800.  Now, while balance transfer fees are by no means deal breakers, they do help boost savings (in this example, by 20%).

 Given our stance on no fee balance transfers, it should come as no surprise that our selection for “Best Balance Transfer” offers no fees on balance transfers and a 0% APR for 1 year.  And the winner is…The Citi Professional Cash Card.

Below you can vote on the best balance transfer credit cards.  You can compare all of the offers listed in the 0% APR Balance Transfer section of our website and apply online for approval.

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In our opinion, the best balance transfer credit cards charge no balance transfer fees. Consequently, our selections for best balance transfer credit cards are the Citi Professional Card, which offers a 0% APR on balance transfers for nine months and the Bank of America Platinum Plus Card, which offers a 0% APR on purchases and balance transfers for 6 months. Both of these cards charge no balance transfer fees.

The runners up are credit cards that offer a 0% APR on balance transfers for 1 year, a 0% APR on purchases as well as low long term APRs. Cards that fall into this category are the Discover More Card and the now defunct Chase Platinum Card

With credit markets tightening, it is becoming more difficult to get approved for a good 0% APR balance transfer credit card. Thus, we suggest that anyone who carries a balance on a high interest credit card take action soon to lock in a 0% rate before the banks get stingier.

To compare all current balance transfer credit cards, including our picks for the best balance transfers, visit the credit card comparison section of SmartBalanceTransfers.

Also, feel free to post a comment or shoot us an email with your opinions.

On Friday, February 15th, yet another 0% apr no fee balance transfer offer will be removed from the market. This time it is one of the best offers available, the Citi Home Rebate card. This credit card offered a 0% APR on balance transfers for a full year.

Once Friday comes, there will only be two solid 0% APR, no fee balance transfer offers left on the market, neither of which offer a 0% interest rate for 1 year. These no fee cards offer 0% rates for 6 and 9 months respectively.

If you’re looking to transfer a balance to Citi Home Rebate card before the no fee balance transfer offer expires, you can do so at SmartBalanceTransfers.com before the offer expires. Additionally, you can view all current no fee balance transfer offers at our website at any time.

I received an email from a visitor detailing a bad balance transfer situation that she wanted me to share with other visitors. The visitor received a mail offer from her current credit card company offering her a 0% APR on balance transfers for 1 year. When she received the offer, she had a $5000 balance with the company extending the 0% offer and a $3000 balance with another company. Hoping she could save some money and consolidate her payments, the visitor initiated the balance transfer. That’s where the problems began.

First, she was charged a $75 balance transfer fee. If you’ve been here before, you know I strongly recommend no fee balance transfer credit cards. However, the $75 in balance transfer fees was only the tip of the iceberg. When the visitor made payments to her consolidated credit card bill, she was surprised to find out that every dollar she paid reduced the portion of her debt being charged 0% interest, not the balance being charged 14%. Fortunately, she realized this nasty credit card trick after only a few statements.

After finding my site on Google, she applied for a no fee balance transfer card and sent me an email asking that I share her story with my visitors. I was more than happy to oblige as this highlights one of the nastiest little tricks in the credit card industry. Buried in the fine print of just about every credit card’s terms and conditions will be a statement such as this: every payment will be applied to the balance with the lowest interest rate. In a nutshell, this means that if you have a balance on your credit card and you are offered a 0% balance transfer deal, you’re best off putting it in the shredder and consolidating your credit balances on a new 0% APR credit card that charges no balance transfer fees.

Updated April 25th 2009:  Due to the constantly changing nature of offers from this company, we recommend referring to www.capitalone.com for details on these offers.  However, at the time of publication, in December of 2008, no fee balance transfers were available.

I received an email from a visitor regarding the issue of maximum balance transfer fees. In general, it is safe to assume the maximum balance transfer fee is $75 or 3%, whichever is greater. However, never assume anything when it comes to credit card companies.

As I’ve reported recently, a number of credit card companies have lifted the ceiling on balance transfer fees. Individuals transferring less than $2500 need not be concerned, as the maximum fee on a balance transfer of that size or less will be no more than $75. The issue of no limit balance transfer fees only effects individuals transferring more than $2500. If you fall into this category, then it is vitally important to examine the fee disclosure in the terms and conditions of your credit card application.

For example, a typical balance transfer fee disclosure will state that there is a, “3% balance transfer fee, up to $75, for every balance transferred with this offer.” A credit card that does not cap the maximum fee will simply state that there is a, “3% balance transfer fee for each transaction.”

Failing to notice this key disclosure can be costly. For example, if you make a $10,000 balance transfer with a 0% APR credit card that does not cap balance transfer fees, the cost of transferring your balance skyrockets from $75 to $300! That’s a hefty penalty for failing to read the fine print.

Fortunately, avoiding a massive balance transfer fee is simple. All you have to do is read the fine print. For additional information on balance transfer fees, visit the 0% APR balance transfers section of Smart Balance Transfers where you can compare balance transfer applications and apply online for approval. Additionally, you can cut out fees altogether by applying online for a no fee balance transfer credit card. Just remember to read the fine print before you submit your application.