What Is a Balance Transfer Fee—and Can You Avoid It?

A balance transfer fee is a charge by lenders to move existing debt from one institution to another, often by credit card companies. The fee is typically a percentage of the total transfer amount. Many lenders offer low or no balance transfer fees as introductory promotions. Balance transfers help save money by consolidating high-interest debt to lower-rate cards. While they offer benefits like lower interest rates and debt consolidation, there are drawbacks such as time constraints and potential for increased interest rates after introductory periods. Consumers should carefully review terms, including transfer fees and post-introductory rates. Finding cards with low transfer fees and favorable interest rates can lead to significant savings. Successful balance transfers require committing to paying off the debt before promotional rates end.