The first thing we look at on any 0% balance transfer offer is the balance transfer fee. Read this carefully because there are no exceptions to this rule.

If there is a balance transfer fee associated with the offer, it MUST be capped at a specific dollar amount or we will not use the card for any balance transfers.

These fees are usually documented as follows:

"0% fixed APR for 12 months on balances transferred now.
Balance Transfer Fee: 3% ($5 minimum)"

This offer is a definite NO-GO. They are claiming our rate to be 0% yet, because they are assessing a balance transfer fee of 3%, our rate is really 3% not 0%. And quite frankly, the deal is even worse than a 3% fixed rate because they assess the 3% immediately. If we were to transfer a balance of $10,000, this fee would cost us $300 (almost entirely nullifying the profit potential of this card).

If the fee is waived, or fixed at a specific and low enough dollar amount, we are happy to sign-up. Balance transfer language that we like to see looks as follows:

"0% fixed APR for 12 months on balances transferred now.
Balance Transfer Fee: 3% ($5 minimum/$75 maximum)"

or even better yet

"0% fixed APR for 12 months on balances transferred now.
Balance Transfer Fee: 3% ($5 minimum/$75 maximum but waived with this offer)"

Of course we love no fee but as long as it is capped at a reasonable dollar amount, we are ok with it. In the example above, even a fee of $75 is completely reasonable as long as our credit limit is high enough to support it. With a $10,000 limit, and an assumed return for the year of 4% from our money market or online savings account, we have a profit of a little less than $400 for the year. We can subtract $75 from this and still end up with a profit over $300.