A balance transfer fee is what you pay to move your balance from one credit card to another. The fee is usually the larger of 3-5% of the balance transferred, or $5-$10. So, transferring a balance of $5,000 could trigger a 3% balance transfer fee, incurring a cost of $150.
However, there are credit cards with no transfer fee and no interest costs. A 0% interest credit card with $0 balance transfer fee can come in two forms. Credit cards may have 0 balance transfer fee for an introductory period or for the life of the card. The Citi Simplicity card offers a 21-month 0% APR balance transfer, with a $5 or 3% fee. Barclaycard Ring Mastercard gives customers two options, one of which allows it to act like a 0 transfer fee credit card. You can select a $0 balance transfer fee for the introductory period. There is no fee for balances transferred when this time has passed.
Having a 0% APR and 0 balance transfer fee card in your wallet is a good strategy. You’ll save money on fees, and earn yourself some time to pay off the loan without additional interest debt.