Intro Balance Transfer Fee: What You Need to Know
Are you tired of paying high interest rates on your credit card debt? A balance transfer can be a great way to save money on interest and pay off your debt faster. However, it's essential to understand the fees associated with balance transfers, including the intro balance transfer fee. In this article, we'll explore what an intro balance transfer fee is, how it works, and three things you need to know about it.
What is an Intro Balance Transfer Fee?
An intro balance transfer fee is a promotional fee offered by credit card issuers to new customers who transfer their existing credit card balances to a new credit card. This fee is usually lower than the regular balance transfer fee and is only available for a limited time, typically between 3-18 months. The intro balance transfer fee is a one-time charge that's applied to the balance you transfer to the new credit card.
3 Things You Need to Know About Intro Balance Transfer Fees
1. The Fee is a Percentage of the Transferred Balance
The intro balance transfer fee is typically a percentage of the balance you transfer to the new credit card. This percentage can vary from 0% to 5%, depending on the credit card issuer and the promotional offer. For example, if you transfer a balance of $2,000 with an intro balance transfer fee of 3%, you'll be charged $60.
2. The Fee is Usually Waived or Lowered for a Limited Time
As mentioned earlier, the intro balance transfer fee is a promotional offer, and it's usually waived or lowered for a limited time. This is to entice new customers to sign up for the credit card and transfer their balances. For example, a credit card issuer might offer a 0% intro balance transfer fee for the first 12 months, and then charge a regular balance transfer fee of 3% after the promotional period ends.
3. You Should Always Check the Regular Balance Transfer Fee
While the intro balance transfer fee might be attractive, it's essential to check the regular balance transfer fee that applies after the promotional period ends. This is because you might need to transfer additional balances to the credit card in the future, and you'll be charged the regular balance transfer fee. Make sure you understand the regular balance transfer fee before signing up for the credit card.
Conclusion
An intro balance transfer fee can be a great way to save money on interest and pay off your debt faster. However, it's crucial to understand the terms and conditions of the promotional offer, including the fee percentage, the promotional period, and the regular balance transfer fee. By doing your research and choosing a credit card with a competitive intro balance transfer fee, you can make the most of this promotional offer and achieve your debt repayment goals.
