Make sure you do the math to make sure that any balance transfer fee will ultimately cost you less than you’d pay in interest on the card you already have.
For example, if you transfer a $5,000 balance to a card that charges a 3% balance transfer fee, it will cost you $150 just to move your balance. But there are a few caveats to this transaction.įor starters, most balance transfer cards will also charge you a balance transfer fee, typically ranging from 3% to 5% of the amount being transferred. This move can save you money since you won’t be paying any interest on that debt for the length of the promotional offer. The premise of a balance transfer is simple: Take the balance, or debt you have on a high-interest credit card and transfer it to a new card that comes with a 0% APR introductory offer. If you have fair credit and you’re looking to transfer a balance to another card, here’s what to know. Fair credit may mean you may not be eligible for some of the best balance transfer cards on the market. The less you’re paying in interest fees, the more you can put towards knocking out the principal debt.īut when your credit is just fair, it can be a bit of a pickle. If you’re carrying high-interest credit card debt that you can’t pay off right away, using a balance transfer offer can be a smart money move.
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