Depending on the balance transfer card, you may be charged a fee each time you transfer an existing balance to the card. This is known as the balance transfer fee.
Balance transfer fees can typically range anywhere from 3% to 5% of the amount of each transfer, with a minimum of $5 or $10. According to a recent LendingTree survey, more than half of balance transfer credit cards with 0% APRs charge a balance transfer fee of 4% or 5%. That’s up from 47% in 2023 and 43% in 2022.
If your credit card charges a balance transfer fee, it’ll be added to your card balance at the time of the transfer. This allows you to pay the fee over time as you pay down your transferred balance instead of paying it upfront. Just know, though, that the amount of the balance transfer fee will also reduce the amount you’re eligible to transfer.
Some balance transfer credit cards, like the Citi Double Cash® Card, offer an intro balance transfer fee that provides an incentive to transfer a balance within a specific period of time.
Paying a balance transfer fee is usually worth it if you choose a balance transfer credit card that offers a 0% intro APR on balance transfers — with this method, you can potentially save hundreds to thousands of dollars on interest charges.
In fact, the cards with the longest interest-free periods on balance transfers charge balance transfer fees. For example, the Citi Simplicity® Card offers 0% intro APR for 21 months on Balance Transfers (then a 18.24% - 28.99% (Variable) applies). There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
To determine if a balance transfer fee is worth it to you, compare how much you’ll save on interest charges to how much you’ll pay in balance transfer fees.
While most of the best balance transfer cards charge balance transfer fees, there are a couple instances where a balance transfer fee may not be worth it. For example, if you’re able to pay off your transferred balance within a year, a no-fee balance transfer card could be a good fit (since the maximum amount of interest-free time they tend to offer is 12 months). Further, if you’re able to meet the eligibility requirements needed for credit union membership, a no-fee card could be a good choice.
The only way to avoid a balance transfer fee is to find a balance transfer credit card with no fee. No-fee balance transfer cards are rare, but there are several choices available. They’re also usually offered by credit unions that require a membership, so you should check the eligibility requirements before applying.
For example, the ESL Visa® Credit Card is our pick for the best balance transfer credit card with no transfer fee. This card offers an intro 0% intro APR for 12 months on balance transfers, then a 12.50% - 17.99% variable APR. To apply, you must be a member of ESL Federal Credit Union, which requires you to live in or have ties to specific counties in New York state. See the full membership requirements here.
The information related to the ESL Visa® Credit Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
