The Hidden Fees of Balance Transfers

by Carlos
(Houston, Texas)

Okay, I admit right upfront that I did not read the fine print or all the credit card jargon that I should have read and as a result, I am paying for it dearly. It all started when I was offered a credit card with free balance transfers, or so I thought.

I was excited to find this card because I have two other credit cards with higher interest and is was appealing to be able to just transfer them right over to the new card and instantly receive a lower percentage on the balance.

I used their online option to transfer my balances, it is was quick and straight forward. I did not read all the jargon before I hit the accept button, I assumed they were honest when they said the transfers were free.

I was happy to have all my balances on one card until I received my first statement and was puzzled to see that the transfers were not free. I immediately called them because I was sure there was a mistake and they would quickly refund the charges.

Instead, they informed me that the transfers themselves were free, but that the charges I was seeing were administration fees. I could not believe I was so stupid to fall for their trick!

It turns out their "administration fee" was more than most banks charge for an actual balance transfer. I felt duped but at the same time, it was right there in the midst of their credit card lingo that is so boring to read, I skipped right over it.

Therefore, I did not have anyway to fight it, they stated their terms, although very sneakily. One thing I have learned is to read the fine print, if I do not understand it, I find someone that does before I sign anything.