Balance Transfer Fees - the hidden danger

Most people are now aware of the fees being imposed by most credit card issuers for balance transfers, and while there are still cards available without a fee, a charge of 2.5% or thereabouts has become a fact of life.

Most cards with a transfer fee will cap the amount you have to pay at £50 or similar, with this figure hidden in the small print. Some cards, however, mention no upper limit - and if you don't notice this then you could be gouged quite painfully.

For example, transferring a £5,000 balance to a card charging a 3% fee with no upper limit would cost you £150, rather more than you might be expecting.

So, always check for a cap on charges before taking on a new card!