Balance Transfer Offers With No Fee

A balance transfer fee is a fee charged by most credit card companies when a cardholder transfers a balance onto the card. The fee is a percent of the balance transfer amount, typically 3% but sometimes as high as 5%. As an example, a $1,000 transfer subject to a 3% balance transfer fee would cost the cardholder $30 ($1,000 x 3%).

Readers regularly ask us several questions about transfer fees:

• "Are there balance transfer offers with no transfer fee?"
• "Are there transfer deals with capped or maximum transfer fees?"
• "Will a card issuer refund the transfer fee if the balance transfer is paid in full before the special rate period expires?"

First, the easy answers. Transfer fees are nonrefundable. You don't get the fee back even if you were to pay back the balance transfer the next day.

Now let's turn to capped fees. Last year there were card issuers that offered transfer deals with capped fees. Advanta was one such card issuer, but is no longer in business. Advanta charged a 3% balance transfer fee, but capped the fee at $75. Today, maximum fees are a thing of the past. You can expect to pay the transfer fee percentage on the entire amount.

Although there are no limits to the balance transfer fees now charged by credit cards, there are a few no fee balance transfer offers available. It's important to realize, however, that these offers are not 0% transfer offers. They are good deals, but you will pay interest on the transferred balances. There are 0% balance transfer offers that charge a fee, and they may actually be a better deal than the no fee options. Here is a list of both the no fee and 0% offers:

No Fee Balance Transfer Offers

Each of these cards requires excellent credit to qualify.

1. Simmons First Visa Credit Card: The Simmons First card offers one of the lowest interest rates currently available on a credit card at 7.25%. This rate applies for both regular purchases and balance transfers. There is no balance transfer fee on balances transferred in response to this online offer. Because of the extremely low interest rate, applicants that do not have excellent credit will not be approved. The card has no annual fee. To get more details and apply online, visit www.simmonsfirst.com/visa-card.
2. Simmons First Rewards Credit Card: This card is very Similar to the Simmons First Visa card, except for two things. First, it offers a rewards program that pays cardholders who enroll in the program one point per net dollar spent. The rewards program enables cardholders to choose any U.S. based airline or ticket class. No blackout dates or seating restrictions apply, and other travel related options are hotels, cruises, vacation packages, car rental, and restaurants. Second, the interest rate is a bit higher, currently at 9.25% for both purchases and balance transfers. Excellent credit is required, and there is no annual fee. For more information and to apply online, click here.
3. IberiaBank Visa Select: The Visa Select from IberiaBank is a low interest card designed for those with excellent credit. It comes with a no fee 12-month balance transfer at 8.75%. After that, the interest rate adjusts to the prime rate + 5.5% (which is currently 8.75%). This introductory rate applies to balance transfers initiated during the first three months after the account has been opened. You can get more information about the card and apply online at IberiaBank by clicking here.

0% Balance Transfer Offers

There are several cards that offer 0% balance transfer offers. While they do charge a transfer fee, many of these cards cost less than the no fee options because of the zero percent transfer.

1. Discover More Card--American Flag Edition: This card offers one of the best 0% balance transfer deals currently available. The introductory rate is good for 12 billing cycles. Discover charges a 5% balance transfer fee, making the total cost of borrowing for 1 year a total of 5%. The card also offers cash back on purchases of up to 5%, 0% on purchases for the first six months, and no annual fee. You can get more information about the card and apply online at Discover by clicking here.
2. Citi Platinum Select MasterCard: The Citi Platinum Select is a good all around credit card that I've used for years. It's zero percent balance transfer offer is a 6-month offer with a 3% balance transfer fee. The card also offers a competitive interest rate on regular purchases depending on the applicants credit history. You can get more info on the card and apply online on the Citibank website by clicking here.