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What is a balance transfer fee?

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In short: A one-off charge of typically 2%–4% of the debt you move to a new credit card. A £3,000 transfer at 3% costs £90 added to your new balance immediately — factor this into whether the 0% period saves money.

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Reviewed by Kaiser Khan

Some cards offer fee-free transfers for shorter 0% periods. Longer promos usually charge higher fees.

Compare total cost: fee plus whether you can clear the balance before the standard APR applies.

See balance transfer cards explained and our credit card payoff calculator.

Primary source: legislation.gov.uk/ukpga/1974/39

Part of our Banking & current accounts

This quick answer sits inside our wider banking & current accounts hub — with sub-guides, calculators and step-by-step explainers on the same topic.

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