For those paying down high-interest debt, such a move can save serious money on interest charges if done strategically. Generally, you’ll have to pay a balance transfer fee — usually 3% to 5% of the total transferred. And if your balance transfer card’s limit is low, you might not be able to transfer your full balance.

How do I know if my balance transfer is worth it?

“If you’re able to pay off the balance transferred before your interest-free period ends and the balance transfer fee is less than the amount of interest you would pay on the original card, then transferring is worth it.”

What is the average transfer fee?

Fees range from $0 to more than $40. Sending wire transfers can be an expensive way to move money from one bank account to another, with typical outgoing fees of $25 per transfer within the U.S. But if you’re sending a lot of money or need a transfer to happen quickly, it may be a good transfer option.

Is there an annual fee for a 0% balance transfer?

Luckily, a majority of balance transfer cards do not charge annual fees. Transferring a balance to get a 0% introductory rate for 12 months doesn’t mean just forgetting about the balance.

Do you have to pay a late fee when transferring a balance?

Transferring a balance to get a 0% introductory rate for 12 months doesn’t mean just forgetting about the balance. The cardholder has to make minimum payments before the due date every month or they lose the 0% rate and might have to pay a late fee.

How much does it cost to transfer a credit card balance?

Most banks will charge a balance transfer fee of somewhere between 3 percent and 5 percent of the amount of credit card debt that is being transferred. If you are consolidating several credit lines with a total balance of $10,000, you will pay $500 as a balance transfer fee, if that fee is 5 percent.

What happens when you transfer balance with 0% APR?

While the balance under a 0% APR balance transfer offer won’t accrue interest during the set period as long as every minimum payment is made on time, credit card companies usually charge consumers for moving the balance from the old card to the new card.