No Fee Balance Transfer Credit Cards

First things first, here are the latest “no fee balance transfer credit cards” (last updated January 4, 2012):

Discover® More Card – No Balance Transfer Fee – you read that right. There is NO balance transfer fee and 0% APR for 12 months with this special offer!!!

This is one of only two no fee balance transfer credit cards out there at the moment that comes with 0% APR. All other no fee balance transfers have APR above 0%. Also note that this promotional balance transfer offer from Discover is only available for a limited time, so act now. After that, expect to pay a balance transfer fee if you want 0% APR.

If you have a balance with Chase, this is the only option to transfer a balance with no fee. If you have a credit card balance with Discover, take a look at the Chase no fee balance transfer offer below. Remember, you can only transfer balances between different credit card issuers.

Chase Slate No Fee Balance Transfer – This is the only way to get a 0% APR no fee balance transfer right now. For a limited time, transfer a balance to Chase Slate for free. That’s right! No balance transfer fee! And the card offers 0% APR for up to 12 months on both balance transfers and purchases. Act quickly on this one…

Chase Freedom® Visa – $100 Bonus Cash Back + 0% Intro APR – This is probably the only way to get a no fee balance transfer at the moment. While there is a 3% balance transfer fee, you get $100 cash back after making $500 in qualifying transactions during the first 3 months from account opening. Balance transfers count, so you basically get $100 cash back if you transfer at least $500, which will offset the balance transfer fee.

Example: Transfer $2,000, pay a $60 balance transfer fee, but get $100 cash back. That’s a $40 net profit for executing the balance transfer, which is actually BETTER than a no fee balance transfer credit card!

Chase Slate – $75 Statement Credit + 0% Intro APR for up to 15 Months – If you need a longer no fee balance transfer, Chase Slate will give you a $75 statement credit after making $300 in qualifying transactions during the first three months from account opening (balance transfers count). So you can balance transfer up to $2,500 and get it all back via the statement credit.

Expired Offer: Chase Freedom® Visa – New! $150 Bonus Cash Back – This exclusive deal is even better than the one below. You can now earn $150 cash back if you balance transfer just $500 during the first month from account opening. That means you can balance transfer up to $5,000 and offset the entire 3% balance transfer fee. Or transfer less and come out ahead! That’s even better than a no fee balance transfer credit card! This card comes with 0% APR on balance transfers for 12 months and no annual fee!

While playing the credit card balance transfer arbitrage game can come in handy, it can also burn you if you aren’t careful.

Balance Transfer Drawbacks

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 that the APR is 0% for “x” amount of months.

Check Terms for Balance Transfer Fees

If you check out the fine print, you’ll likely find a section regarding balance transfers. In that section, read very carefully to ensure there isn’t a fee associated with the balance transfer. If there is, it should note the percentage charged, along with the minimum and maximum charge.

Typically, the minimum balance transfer fee is 3% of the transfer amount or $10, with a maximum fee of $50-$75. However, some credit card issuers no longer have a maximum balance transfer fee, so take note.

While $75 may not sound like a lot, it can add up, and may eventually kill the advantage of executing a balance transfer.

Who Doesn’t Charge a Balance Transfer Fee?

From my experience, Chase credit cards always seem to have an associated balance transfer fee, along with many 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.

Keep in mind that most credit card issuers 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.

But there always tends to be one willing to offer a no fee balance transfer, so be sure to keep your eyes peeled.