Balance transfer fee
The charge for moving debt to another card - usually 3-5% of the amount transferred.
The charge for moving debt to another card - usually 3-5% of the amount transferred.
A balance transfer moves debt from one card to another, typically to land inside a 0% introductory APR promotion. The transfer itself is not free: issuers charge a fee of commonly 3% (often 5% on some products) of the moved balance, deducted from the amount or added to it. The math that decides whether it helps is simple - fee today versus interest avoided over the promotional window - and it only works if the balance is paid down substantially before the promo expires and the deferred interest, where a card has it, does not spring back.
Read the order of payments too: unless you opt otherwise, issuers apply payments to the lowest-rate balances first, which can leave the post-promo balance at regular APR longer than planned. Promotional transfers also consume the card's limit, affecting utilization, and some cards exclude transfers between their own family. The right comparison is total cost through payoff date - fee plus post-promo interest - against staying put.
Worked example
Moving a $5,000 balance at 22% onto a 0%-for-18-months card with a 3% fee costs $150 up front; minimum payments alone will not clear it, so at month 18 the remaining balance reverts to regular APR - the fee buys time, and the payoff plan decides whether that time was worth $150.
Related terms and tools
Grace period, Credit utilization, Credit card payoff calculator
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