Balance Transfer Fee

The Balance Transfer Fee is a fairly new kind of charge made by credit card issuers for the use of a balance transfer facility.

The popularity of 0% balance transfer deals and the so-called 'rate tart' phenonemon meant huge costs to the credit card industry, which they have now started to claw back by charging a percentage of any balances transferred to your account.

The normal charge is usually around 2%, and there's generally an upper limit of £50 or so.

Not all cards charge a balance transfer fee, for more details see our list of no-fee balance transfer cards.


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