What is a balance transfer fee? Here’s what you may have to pay when you consolidate your debt.
Balance transfers can be a useful way to consolidate your debt without the cost of high interest. While you’ll save on interest with a lower introductory rate, this doesn’t mean that balance transfers are cost-free. As well as the standard card fees, you might also have to pay a one-off balance transfer fee.
What is the balance transfer fee?
A balance transfer fee is charged when transferring your existing credit card debt to a new credit card. It is usually 1-3% of the entire balance transfer amount.
When you conduct a balance transfer, you may be asked to pay a one-time balance transfer fee. It’s generally 1% to 3% of the total balance being transferred. Sometimes, this fee is capped and you’ll be required to pay the larger of the two. Usually, a balance transfer fee will be capped between $25 and $100. For example, if the fee had been capped at $75 and the balance transfer fee was 2%, then the 2% would be applied to any balance up to, $4,250. After this amount, you’d be required to pay the $75.
Scenario 1: You’re transferring $10,000 onto a new balance transfer credit card. The card has a 2% balance transfer fee with a max of $75.
$10,000 x .02 = $200.
Because the card has a maximum fee of $75, you’ll pay just $75.
Scenario 2: You’re transferring $10,000 onto a new balance transfer credit card. The card has a 3% balance transfer fee with no cap.
$10,000 x .03 = $300.
Because the card has no cap on the fee, you’ll pay $300. As you can see, balance transfer fees can add up quickly if you are transferring a large balance to a card with no cap on their fee.
If you’re wondering if your card will charge a balance transfer fee, check the relevant Terms and Conditions (TOC) and you should be able to locate your answer under the ‘fees and rates’ section. If you’re still unsure, contact the provider’s customer service team to confirm what you’ll be expected to pay.
Comparison of Balance Transfer Credit Cards
Rates last updated November 9th, 2016.
Barclaycard NFL Extra Points Credit Card
APR for purchases of 15.24%, 20.24% or 25.24% variable and cash advance rate of 25.49%
January 8th, 2016
Barclaycard Arrival Plus World Elite MasterCard
50k bonus miles + 0% APR for 12 months on BT + APR for purchases of 16.24% or cash advance of 25.49%
September 17th, 2016
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APR for Purchases ( Purchase Rate )
Intro APR for Balance Transfer
Maximum Balance Transfer Amount
Annual fee
Barclaycard Arrival Plus World Elite MasterCard
Earn 50,000 bonus miles and enjoy the current 0% p.a. for 12 months
16.24%, 20.24% or 23.24% (based on credit worthiness)
0% Intro APR for 12 months (with minimum of $5 or 3% balance transfer fee)
You can transfer any amount up to your available credit limit.
$0 p.a. annual fee for the first year ($89 p.a. thereafter)
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More info
Barclaycard NFL Extra Points Credit Card
Balance transfer offer of 0% p.a. for 15 months and enjoy 10,000 bonus points.
15.24%, 20.24% or 25.24% (based on creditworthiness)
0% Intro APR for 15 months (with minimum of $5 or 3% balance transfer fee)
You can transfer any amount up to your available credit limit.
$0 p.a.
Go to site
More info
USAA Cash Rewards American Express
You can receive up to 2.25% cash back on groceries and gas, as well as up to 1.25% cash back on most purchases.
10.15% to 26.15%
3% Intro APR for 12 (with 3% of the transaction amount (maximum fee is $200)% balance transfer fee)
The daily maximum limit for balance transfers may be a total of $50,000 per USAA credit card, not to exceed each account's available transfer limit.
$0 p.a.
Go to site
More info
UNITY Visa Secured Credit Card - UGET25 Promotion
Use the code UGET25 to get $25 back while you spend. Valid until 2017.
17.99%
9.95% Intro APR for 6 months (with minimum $10 or 3% balance transfer fee)
You can transfer any amount up to your available credit limit.
$39 p.a.
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More info
USAA Cash Rewards Visa Signature®
You can get price protection and extended warranties for your purchases and rewards for your day-to-day purchases.
10.15% to 26.15% (based on creditworthiness)
3% Intro APR for 12 (with 3%% balance transfer fee)
The daily maximum limit for balance transfers may be a total of $50,000 per USAA credit card, not to exceed each account's available transfer limit.
$0 p.a.
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More info
USAA Military Affiliate Card
Earn 2,500 bonus points credited to your account with your first purchase and then 1 point per $ spent. No expiration date.
11.15% to 26.15%
3% Intro APR for 12 (with 3% of the amount of each transfer (maximum fee per transfer $200% balance transfer fee)
The daily maximum limit for balance transfers may be a total of $50,000 per USAA credit card, not to exceed each account's available transfer limit.
$0 p.a.
Go to site
More info
USAA Rate Advantage Visa Platinum
Get price protection and extended warranties on products you purchase, which allows you to refund payment for products.
7.15% to 24.15%
3% Intro APR for 12 (with 3% of the transaction amount (maximum fee is $200)% balance transfer fee)
The daily maximum limit for balance transfers may be a total of $50,000 per USAA credit card, not to exceed each account's available transfer limit.
$0 p.a.
Go to site
More info
UNITY Visa Secured Credit Card
Borrow up to $10000 and get your credit score back on track.
17.99%
9.95% Intro APR for 6 months (with minimum $10 or 3% balance transfer fee)
You can transfer any amount up to your available credit limit.
$39 p.a.
Go to site
More info
Barclaycard CashForward World MasterCard
Receive $100 cash rewards bonus when you spend $500 on your card within the first 90 days. A no annual fee card with 0% introductory APR on balance transfers.
14.99%, 19.99% or 24.99%, variable APR, based on your creditworthiness
0% Intro APR for 15 months (with $5 or 3% balance transfer fee)
You can transfer any amount up to your available credit limit.
$0 p.a.
Go to site
More info
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