 TITLE: Understanding Balance Transfer Fees CONTENT: How Do Balance Transfer Fees Work?\n----------------------------------\nBalance transfer credit cards often have low percentage teaser interest rates, also called introductory rates, that credit card companies offer to entice new signups. These rates can be as low as 0%; however, after the introductory period ends, your APR will revert to a higher percentage. As a tradeoff for the low or 0% APR, you'll typically need to pay a balance transfer fee on any balances moved to the new card. Before you apply for a balance transfer card, it's a good idea to calculate exactly what the fee(s) will be and how long the low interest period will last.\nYou can find credit card transfer fees on the card issuer's website or in the \"rates and fees\" or \"terms and conditions\" documents when you're applying. (It will also be included in the documentation that's mailed to you with your new card.) Balance transfer fees can vary, but are usually either 3% or 5% of the transferred amount.\nOnce you're approved for a balance transfer card, you can transfer an outstanding balance to it from your existing credit card (or cards) or even use it to pay outstanding loans. The balance transfer card issuer either pays your credit card company or lender directly or issues a check you can use to pay off your balance. The fee for each balance transfer will be added to the balance on your new card.\nIn most cases, the savings from reduced interest will outweigh the balance transfer fee, as long as you pay off the transferred balance before the introductory rate expires. Before applying for a balance transfer card, create and commit to a plan to pay off your balance before your interest rates increase. END