May 3, 2006

By Peter Kenny

In a move similar to Egg, Mint, the online bank, have announced they are removing their fee cap for any balance transfers made to their credit card.

Some bad news for UK credit card holders comes with Mint announcing that all balance transfers made to their credit card now incurs a 2 per cent balance transfer fee with no maximum fee.

Balance transfer fees have been introduced over the last 12 months by banks and credit card companies, to try and claw back some of the lost revenue in having 0% balance transfer introductory schemes for many of their.

At first these balance transfer fees were normally 2 per cent of the balance to be transferred and would have been capped at £49/50 per transaction. Now many banks and credit card companies are removing the fee cap and having an open-ended fee. This move of course affects UK credit card holders with a large balance to transfer.

If a consumer has a £7000 balance to transfer to a Mint credit card, this would now cost £140, whereas before the balance transfer fee would only have been £49.

The 2 per cent balance transfer fee from Mint is smaller than the 2.5% fee from Egg, who also have removed their balance transfer fee cap.

The Mint credit card comes with a 0% balance transfer offer until March 1st 2007. A 0 per cent introductory offer on all purchases is also offered until March 1st 2007. The Mint card also has a 0% balance transfer anniversary offer during May 2007 which lasts until November 1st 2007. Standard APR of 15.9%

Click here for more details on the Mint credit card