Balance transfer fees

Rosylee

I understand that most CC providers have a rule that says you can only transfer 95% of the credit limit. So is the other 5% to account for the balance transfer fee they will charge. I want to know if I need to account for the fee within my 95% I plan to transfer. So if my limit is £11500 I can only transfer £10925 but does that £10925 include or exclude the transfer fee. Thanks

[Deleted User]

The 95% excludes the fee (certainly on the majority of cards).

eskbanker

My understanding is that the transfer fee is excluded, i.e. you transfer the £10925 and then the transfer fee is added to the balance on the new card.

bengal-stripe

The transfer fee (usually 3% or so) is added immediately to the transfer: hence the 90 or 95% rule (depending on the card).

If you were to transfer 100% and with the transfer fee added, you would have exceeded your credit limit.

Rosylee

Thank you all for your responses, it's a relief to know this.