Most balance transfer offers charge a fee of 3% to 5% of the transferred amount, taken as soon as the transfer completes. That fee is separate from — and in addition to — whatever interest rate applies after the promotional period ends.
Running the actual math
Say you move a $5,000 balance at a 4% transfer fee ($200) onto a card with 0% APR for 15 months. If you'd otherwise be paying 22% interest on that balance, you'd owe roughly $1,375 in interest over 15 months at your old rate. Paying $200 to eliminate that interest is a clear win — as long as you can actually pay off the balance before the promo period ends.
The fee is charged even if you pay it off in week one
There's no partial refund for paying early. The fee is a fixed cost of moving the balance, so it only makes sense if the interest you're avoiding is larger than the fee itself.
When a balance transfer isn't worth it
- The balance is small enough that the fee eats up most of the interest savings.
- You won't be able to pay it off before the promotional rate expires, and the post-promo rate is high.
- You're likely to keep charging on the old card, effectively doubling your debt instead of consolidating it.
