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Balance Transfer Fee
What is a balance transfer fee? I mean how does it work, exactly? If I transfer from one credit card to another one for a better interest rate, then there is a fee? How much is it, and does it come out of the balance I am transferring, or do I have to pay the fee up front?
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Depends on the institution, you should call customer support for the card you want to transfer a balance to and ask them about their fees.
Usually it is a fee you pay to the card you are transferring the balance to, and usually it is simply added to your outstanding balance. It might be a flat dollar amount, a percentage, or both. Sometimes it is up front but if you are specifically transferring a balance from credit card to credit card it is usually added to your outstanding balance because that way if you just keep making minimum payments they can collect interest on the fee as well as the transferred balance.
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