Balance transfer fee - how does it work?

northofthewall

This is probably a stupid question, but if I take out a balance transfer card, how and when do I pay the fee? Do I need to pay it separately, or is it added on to the new card debt?

If it's added onto the new card, do I need to allow for that when working out how large a limit I will need to transfer the whole balance of my existing card?

Vortigern

The fee is added to the transferred balance. You need to allow for that to avoid going over your limit.

TadleyBaggie

It's added to the new card debt. Be aware, although the interest on the the balance transfer is 0%, the fee may attract interest at the standard card rate. So the first statement after the transfer may have a small interest charge present, however this should be cleared by the first payment. Also be aware that if you get a credit limit of £xxxx, you will only be able to transfer up to 80% of this or so.

northofthewall

Thanks TadleyBaggie, looks like I'll need to ask for a higher limit than I thought if I do this.