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Q: I’ve heard people talking about transferring their credit card balances to another card in order to consolidate. Is there a fee to do something like this?
A: Balance transfer fees are imposed when a credit card user takes the balance of another credit card and transfers it to another, usually one with a lower interest rate. This may help the user pay the other card off faster.
However, some credit card companies do charge a balance transfer fee, and this amount will differ between companies. Some companies charge as much as 5% of the balance being transferred, while others charge only 2%. The average amount for a balance transfer fee is between 3% and 4%. Remember also that balance transfers may be figured at a different APR (annual percentage rate) than the card itself.
Unless you have the PenFed Promise Visa, that is. If you have that particular credit card, there is no fee for making a balance transfer. Whatever the balance was when you transferred it is what you will be placed on the other card. This can be extremely helpful if your whole reason for doing this was to get one card paid off as quickly as possible.
If it is important to you to get one credit card paid off as soon as possible, it might be worth your while to consider a PenFed Promise Visa. After all, you can’t get any lower than 0%.[include file=/wp-content/themes/customtheme/rec-balance-transfer.php]