No Fee Balance Transfer Credit Cards
First things first, here are the latest credit cards that offer no balance transfer fee, though they require income documentation:
IberiaBank Visa Platinum Rewards Card - no balance transfer fee, 0% APR for six months, no annual fee - apply here.
IberiaBank MasterCard Gold Cash Back Rewards Card - also a “no fee balance transfer credit card”, 0% APR for six months, no annual fee - apply here
Get a Low Interest Credit Card - Apply HERE
While playing the credit card balance transfer arbitrage game can come in handy, it can also burn you if you aren’t careful.
As I’ve noted in similar posts, balance transfers often come with hefty fees, are subject to the universal default rule, and many other pitfalls that can turn the balance transfer game on its head.
If you do choose to use credit card balance transfers, make sure you go with credit card providers that don’t charge a balance transfer fee. While this sounds like a no-brainer, it’s often unclear who and who does not charge the fee.
To find out, you really need to dig deep and open up the terms and conditions of the credit card agreement. The credit card providers definitely won’t make it obvious that there’s a fee associated with the balance transfer. The only thing they’ll highlight is the fact the APR is 0% on for “x” amount of months.
If you check out the fine print, you’ll likely find a section regarding balance transfers. In that section read very carefully to ensure that there isn’t a fee associated with the transfer. If there is, it should note the percentage charged, along with a maximum charge. Typically it is 3% of the transfer amount or a maximum of $50-$75. While it doesn’t sound too pricey, $75 charges add up, and eventually kill the advantages of using balance transfers to begin with.
From my experience, Chase credit cards always seem to have an associated balance transfer fee, as well as some American Express credit cards, but Discover and Citibank credit cards often do not. As always, double-check the fine print to make sure there isn’t a balance transfer fee associated, as terms can change over time.
Aside from the lack of balance transfer fees, Discover is probably a credit card you don’t have, and therefore a better candidate for a balance transfer, because balances must be transferred from different credit card providers. For example, if your current credit card balance is with Discover, you wouldn’t be able to move it to a new Discover card. If you current balance is with Chase, American Express, Citi, etc, then you could move it to a Discover card.
Most credit cards these days no longer offer a “no fee balance transfer”. The majority are now 3% of the balance transfer up to $75 (or more). This seems to be a growing trend as card issuers try to discourage balance transfer arbitrage.