{"id":237,"date":"2011-09-23T12:50:00","date_gmt":"2011-09-23T12:50:00","guid":{"rendered":"https:\/\/www.smartbalancetransfers.com\/?p=237"},"modified":"2020-09-29T11:32:06","modified_gmt":"2020-09-29T11:32:06","slug":"what-are-balance-transfer-fees-and-should-you-pay-them","status":"publish","type":"post","link":"https:\/\/www.smartbalancetransfers.com\/blog\/2011\/09\/what-are-balance-transfer-fees-and-should-you-pay-them\/","title":{"rendered":"What are Balance Transfer Fees and Should You Pay Them"},"content":{"rendered":"\n
Balance transfer fees are charged on credit card balances you transfer to a different credit card with a low introductory rate. They typically range between 3-5% and there is usually no cap placed on the fee. Depending on the terms of your balance transfer, these fees can have a big impact on how much you save, so it\u2019s important to factor them in when comparing credit card offers.<\/p>\n\n\n\n
It\u2019s also important to know how balance transfers have changed in the last few years. For instance, in the past, balance transfer fees were often waived by major issuers. With so many offers flooding the market, banks felt they had to offer this kind of deal in order to compete. This is no longer the case. Since the credit crunch and passage of the CARD Act, banks tightened their wallets and the days of free balance transfers ended, although there are\u00a0occasional exceptions \u2013 including the\u00a0Chase Slate card,\u00a0which is the only no fee card presently being marketed by a major bank<\/strong>.<\/p>\n\n\n\n A major post-CARD Act change to transfer fees is the removal of the cap that used to be in place on the amount of the balance transfer fee. In the past, almost all card issuers used to cap transfer fees. No matter what the size of the balance transfer, the maximum fee charged would not exceed $75 per transaction. Now, the typical fee is unlimited, which is quite a dramatic difference. On a transfer of $3,000 with a 4% fee, the cost of doing a balance transfer jumps from $75 to $120.<\/p>\n\n\n\n