What is a balance transfer fee?
Editor's Note
If you're conducting your first balance transfer, you might not know that there's generally a fee attached. Unsurprisingly, we call this a balance transfer fee.
A balance transfer fee tends to be 3% to 5% of the total amount transferred. There are some restrictions on balance transfers, such as an amount limit. Also, same-issuer transfers — for example, transferring debt on one Citi card to another Citi card — generally aren't allowed.
But how do credit card balance transfer fees work, and what do you need to know about them before conducting a transfer? Here's your complete guide.
How does a balance transfer fee work?
Balance transfer fees typically come out to 3%-5% of the total amount you transfer and usually have a minimum fee of $5 to $10. The fee is charged by the issuer you're transferring the debt to.
Since the entire point of a balance transfer is to save money with lower interest rates, you'll want to weigh the amount you'd be saving on interest versus the amount you'd be paying in transfer fees whenever you're considering a balance transfer.
There are a number of balance transfer credit cards with a 0% introductory transfer fee, which can also come alongside a 0% introductory annual percentage rate and other perks. Unless you get a card with benefits like this, you'll want to ensure your theoretical balance transfer will save you money at the end of the day.
Related: Balance transfer or personal loan: What's the difference?
What would be a good balance transfer fee?
The cost of a balance transfer fee varies based on the terms set by your credit card company and the amount of debt you transfer. Typically, this fee ranges from 3% to 5%, depending on the issuer.
While 3% is on the lower end of typical transfer fees (aside from an introductory 0% offer), it all depends on the amount you're paying in transfer fees versus the amount you'd pay in interest if you didn't transfer the debt. While balance transfers are typically less than whatever amount of interest you'd pay on a card, it's not always a guarantee that that's the case.
Related: Can you keep transferring credit card balances?
Can you avoid balance transfer fees?
The most reliable way to avoid balance transfer fees is to check if there are any balance transfer cards available that completely waive the fee. Alternatively, you may find cards offering introductory balance transfer fee promotions.
It's important to note that the $0 transfer fee may apply only within a specific period. So, it is crucial to read the terms carefully and determine when you need to request the balance transfers for the offer to be valid. Typically, this window falls within the first few months after receiving the card.
Related: What kind of debt can you transfer to a credit card?
Bottom line
When conducting your first balance transfer, it's possible to be unaware of the accompanying 3%-5% fee. Balance transfers can be a useful way to save money on your next high-interest payment, but you'll want to make sure it makes financial sense to pay the transfer fee instead of the interest on your original card.
Check out our full list of the best balance transfer cards for some good options.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees