You are here: Home - Credit Cards & Loans -

Capped credit cards on the wane

Written by:

The number of credit cards with capped balance transfer fees is dwindling dramatically, according to

The independent financial comparison website says that a year ago consumers could choose from 18 different credit cards with capped balance transfer fees, whereas now that number has dropped to just seven offered by only five different providers.

And with the average balance transfer now as high as £2,666, is warning so-called ‘rate tarts’ with balances of at least £3,000 that they could incur fees of over £100 just to transfer credit to a new provider.

Sean Gardner, chief executive of, said: “Credit card switching is big business. Someone switches a credit card every two seconds and there are very few cards out there that still do not charge a fee for the privilege.

“Consumers looking to move credit card provider will be in for a nasty shock if they don’t choose a card with a capped balance transfer fee – so much so that the process of switching may be entirely pointless if the fee is too extravagant.”

According to the average balance transfer fee is 2.8 per cent of the amount transferred, meaning the typical cost of a balance transfer is some £74.65.
And customers with higher balances could incur much larger fees – a £5,000 balance transfer could cost as much as £150 with a three per cent fee, which is not unusual.

Gardner continued: “In the past the simple advice for rate tarts was to look for a 0% deal, and then for a card with low balance transfer fees.

“Now however with the majority of long term 0% credit cards charging 2% or 3% for a balance transfer, getting a card that caps its fees might be a sensible option if you don’t like the look of one with no fee at all.”


Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Single women in their 30s doing most overtime

Four out of 10 single women in their 30s do unpaid overtime at work, according to an analysis of official...