Writing a balance transfer check to yourself

I am eager to see if it will go through as a balance transfer or get treated as a cash advance. The upside of convenience checks? Certain credit card checks you get in the mail come in the form of a true balance transfer offer, for example.

FYI, I plugged in my checking account number the full number as shown on my checking account statement into the box that asks for creditor account. In some cases, a personal loan from a bank or credit union might offer a better interest rate and terms.

The Good and Bad of the Balance Transfer Check Besides using the balance transfer check to pay off debt, you may able to use it to obtain cold-hard cash. If you miss a payment by 60 days, you could trigger penalty rates. A common use of this tactic is to put the balance transfer funds, usually at zero percent interest if it is a new account, into an investment vehicle.

I am essentially using my checking account number as the credit card number to pay off in this case. The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. The practice is rife for abuse. I can confirm that the transactions posted on both credit cards as balance transfers and not cash advances.

If there are any fees, it might not be worth the risk to write a check to yourself. Also, the bank might charge a fee for the balance transfer. Often these blank checks are a form of cash advance on your existing account. MagnifyMoney does not include all card companies or all card offers available in the marketplace.

From a distance, these checks appear harmless, and even helpful. The potential damage to your score and the possibility of a higher rate on new loan in the near future, such as a mortgage, usually makes this too risky. With a cash advance, most credit card companies will charge an up-front fee and there is no grace period.

This should raise all kinds of red flags. While having the ability to write yourself a check for any amount might sound ideal, doing so means taking on more debt. Regardless, if you sign the check, you are about to take on more credit card debt, so think before you get out that pen.

Even if you do happen to find a credit card company that offers balance transfer checks, verify that the process of obtaining a balance transfer check will happen quickly.

I did the balance transfer transactions online using my checking account number and the balance transfer funds arrived in my checking account in 3 days. There are a few other things to keep in mind when using a balance transfer check.

I requesed a balance transfer from my Discover card to my Chase checking account and I made another transfer request from my FNBO Discover card to my Chase checking account.

How to Use a Balance Transfer Check to Deposit Funds into Your Bank Account

Otherwise, you could end up with a balance transfer card promotion that serves no purpose. Putting the money in a checking account could help if you use the funds to pay off other debts -- effectively eliminating finance charges on those accounts and fees you might incur if you paid by credit card.

When you write a balance transfer check to yourself it is called "arbitrage. Is it a cash advance? Some of the products we feature are from our partners.Is it a balance transfer check?

If you’re looking to help pay down another credit debt, these checks often offer a zero-interest user period, like typical balance transfer credit cards. But the terms may differ drastically from other 0% APR credit card deals.

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Some carry a transaction fee as high as 5% of the amount. Most credit card companies allow you to write a balance transfer check to any person or company, even yourself. When you write a balance transfer check to yourself it is called "arbitrage." Essentially, you lend your credit line to yourself.

Balance transfer fees generally run from 3% to 5% when you use a balance transfer check, and that can certainly add up fast if you're writing a check for a large sum.

However, if you have a decent credit score and are willing to add a new credit card to your wallet, you can actually avoid balance transfer fees altogether. Write a check to yourself and cash it — you’re now using a convenience check as a cash advance.

Using a convenience check, or two or three, for purchases or cash advances can wipe out your credit line pretty fast. Suppose you have a BT check, you can certainly write it to yourself, deposit it to your checking account and pay whatever from there. It works 99% of the time.

Writing balance transfer checks out to yourself is nothing new. I've done that several times but not all banks will issue the checks. What I am talking about is online balance transfer. Where some balance transfers may be fee-free, others charge a balance transfer fee of up to 5% of your transferred balance upfront.

If you write yourself a check for $5, for example, you’ll owe up to an additional $ on top of the money you borrowed.

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Writing a balance transfer check to yourself
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