Next >︎
To Top

Beware of Balance Transfer Fees

If you have a credit card you have probably received balance transfer offers which offer to lower your interest rate. Make sure to factor in the balance transfer fees and to look at the actual interest rate before accepting one of these offers. They often have a 3% (or more) balance transfer fee that is applied to the entire balance you are transferring. And, many times balance transfers are charged a higher APR than normal purchases after the promotional interest rate expires.


For example, if you borrow $1,000 with a 3% balance transfer fee, six months at 0% interest, and a default 18% balance transfer APR then over the course of a year the transfer will have nearly a 12% effective APR for that first year. Beyond that, you are paying 18% on that debt.

By Fisher

Add your voice! Click below to comment. ThriftyFun is powered by your wisdom!

Related Content
In This Guide
Bank Column
Saving Money on Banking
Next >︎
Budget & Finance Credit CardsJune 15, 2006
Writing a check
Saving Money on Checks
Woman Speaking with Credit Union Teller
Using Credit Unions
Banki ATM machine.
Banks With No Minimum Balance Requirement
Avoiding ATM Fees
Avoiding ATM Fees
Thanksgiving Ideas!
Halloween Ideas!
Ask a Question
Share a Post
Desktop Page | View Mobile

Disclaimer | Privacy Policy | Contact Us

© 1997-2017 by Cumuli, Inc. All Rights Reserved.

Published by .

Generated 2017/10/17 14:10:46 in 392 msecs. ⛅️️
Loading Something Awesome!