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Balance Transfer Fee Definition


A balance transfer fee is charged when you make a balance transfer, moving a credit card balance from one credit card to another. Balance transfer fees are typically 2% to 5% of the balance being transferred, but there may also be a flat fee or a minimum balance transfer fee.

The drawback of a balance transfer fee is that is increases the cost of transferring a balance. If you're transferring a balance to save money on interest, a high balance transfer fee could negate the interest saving you're hoping to achieve.

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