topic Re: Balance Transfer Checks? in Credit Cards

Balance Transfer Checks?

EaglesFan2006 — Thu, 21 Nov 2019 13:32:01 GMT

I got some BT checks from Citi in the mail, with a 0% promo rate until 9/2021. I'm considering taking up the BT offer since I've paid off Citi and I can move a card i'm currently paying interest on to that one. However, I've never transferred a balance to a card I already had, alway done it when opening a new card. Just had a couple of questions:

1) How do the checks work? Do I write the check to myself, deposit it, and pay off the balance on the other card that way? Isn't that basically like a cash advance?

2) Is interest deferred on these offers? IE if I don't pay it off by 9/21, does interest accrue starting from that date or from the date I transfer the balance?

Re: Balance Transfer Checks?

Anonymous — Thu, 21 Nov 2019 13:43:48 GMT

It would normally be considered a cash advance but Citi actually approves of people using BT offers to get cash. It's meant for you to go take it and pay off other debts but as long as they get their fee and you aren't using it to pay their own cards, they don't really care. You can deposit them or send checks to your creditors but it's far easier to deposit and pay the creditors yourself electronically.

Interest is not deferred. You won't begin to accrue interest until the promo expires. Generally deferred offers will say something like "no interest charged on purchases IF" or another conditional phrasing. If it says "__% interest until," these are usually not deferred.

Re: Balance Transfer Checks?

K-in-Boston — Thu, 21 Nov 2019 13:52:47 GMT

+1. I always find it easiest to use the direct deposit option in my account for the lenders that offer it, or just use mobile deposit for the checks to deposit to my own primary checking, then pay off balances from there.

If you get BT checks, always take a look at your online account to see if there's an even better offer or perhaps one that extends out another month past the checks.

Re: Balance Transfer Checks?

CreditCuriosity — Thu, 21 Nov 2019 13:57:08 GMT

Still getting swamped with BT checks being mailed to my house 5/3rd is most aggresive atm at 18 months for 3% fee.. Although if i was to use a BT I will wait to jan/feb for NFCU offers or Comenity offers again

Re: Balance Transfer Checks?

EaglesFan2006 — Thu, 21 Nov 2019 15:24:58 GMT

@K-in-Boston wrote:
+1. I always find it easiest to use the direct deposit option in my account for the lenders that offer it, or just use mobile deposit for the checks to deposit to my own primary checking, then pay off balances from there.

If you get BT checks, always take a look at your online account to see if there's an even better offer or perhaps one that extends out another month past the checks.

Thanks all...so really no catches here (other than the 3% fee). I'll double check the wording but seems like this could save me some money and pay off the debt faster...

Re: Balance Transfer Checks?

Anonymous — Thu, 21 Nov 2019 16:11:19 GMT

BT offers are incredibly powerful tools when used wisely for sure. I took a no fee 5.99% APR BT from Disco back in July for $3500, used $3010 to open an SSL with NFCU for 5 years, paid it back within a month and now I have an installment loan that will give me 5 years of optimal installment utilization. Given my current situation, I couldn't have saved the money to pull that off.

Re: Balance Transfer Checks?

AverageJoesCredit — Thu, 21 Nov 2019 16:16:25 GMT

Best bts are ones you can deposit in checking. Faster and just mskes one feel BOSS

Re: Balance Transfer Checks?

K-in-Boston — Thu, 21 Nov 2019 16:37:19 GMT

@EaglesFan2006 wrote:
Thanks all...so really no catches here (other than the 3% fee). I'll double check the wording but seems like this could save me some money and pay off the debt faster...

With Citi and most other issuers, there are no "gotchas" on BT offers other than the fee, and the fact that if you do not pay your statement balance in full (which you wouldn't do with a new balance transfer) you will lose your grace period on new purchases so that they accrue interest at your purchase APR from the moment you make the charge. As a best practice, you should not use a card with a balance transfer on it for new purchases unless it also has a 0% promotional APR for new purchases.

Re: Balance Transfer Checks?

EaglesFan2006 — Thu, 21 Nov 2019 17:10:42 GMT

@K-in-Boston wrote:
@EaglesFan2006 wrote:
Thanks all...so really no catches here (other than the 3% fee). I'll double check the wording but seems like this could save me some money and pay off the debt faster...
With Citi and most other issuers, there are no "gotchas" on BT offers other than the fee, and the fact that if you do not pay your statement balance in full (which you wouldn't do with a new balance transfer) you will lose your grace period on new purchases so that they accrue interest at your purchase APR from the moment you make the charge. As a best practice, you should not use a card with a balance transfer on it for new purchases unless it also has a 0% promotional APR for new purchases.

Thanks,

I wouldn't make any purchases and the current balance is 0 on the Citi card.

So let's say a deposit a BT check for $3,000 after fees, and I pay off $2500 during the promo period. Am I then getting charged interest on the $500 from the deposit date or the promo end date?

I logged into Citi today and also saw i had an offer for a Flex Loan with a low rate...BT seems the better deal, but I had never heard of that before.

Re: Balance Transfer Checks?

K-in-Boston — Thu, 21 Nov 2019 17:15:37 GMT

Yes, you would pay 0% or 1.99% of whatever the BT is until the promo date ends (it will be listed next to the remaining balance at that APR near the bottom of your statement). Then it would be at your purchase, balance transfer, or cash advance rate (look at the terms on the check or online offer) starting the next day. So if you had $500 left at the end of the promo period and your APR was 23.99%, you would accrue roughly $10 in interest one month after your promo ends.

The Flex Loan is usually not a great deal, but if the APR is low enough and you are going to continue using the card for new purchases it would be a better option as the remaining balance on that loan is not factored into losing your grace period.

Re: Balance Transfer Checks?

iDShaDoW — Thu, 21 Nov 2019 21:22:22 GMT

@CreditCuriosity wrote:
Although if i was to use a BT I will wait to jan/feb for NFCU offers or Comenity offers again

Does NFCU have a tendency of sending out BT promos on existing CC's around JAN/FEB of each year? I got one way back but never saw another. I've also tried contacting them and asking but the chat support says they don't see any available.

Getting ready to install solar at the house and it would be awesome to be able to get a 0% APR BT going on it.

I've yet to see any promo's in the mail from NFCU, BOA, or AMEX. I got one recently from Chase but my Credit Limit with them isn't sufficient for what I'd need.

Re: Balance Transfer Checks?

Shooting-For-800 — Thu, 21 Nov 2019 23:30:27 GMT

Depends on the issuer, but I have ALWAYS written the check to myself and deposited it.

This allows you to pay whoever whenever (including the card that issued to promo.)

Read the terms and see...

GL!

Re: Balance Transfer Checks?

Shooting-For-800 — Thu, 21 Nov 2019 23:33:48 GMT

BE VERY CAREFULL...

If you do a 0%, do not charge ANYTHING to the account.

Ideally, pay off the card first, do the 0% check, charge nothing else EVER until it is paid off.

If you charge something on most cards, your 0% is over.

Cap One is the only bank that this does not apply to as far as I know...

Re: Balance Transfer Checks?

Anonymous — Fri, 22 Nov 2019 07:06:39 GMT

@iDShaDoW wrote:
@CreditCuriosity wrote:
Although if i was to use a BT I will wait to jan/feb for NFCU offers or Comenity offers again
Does NFCU have a tendency of sending out BT promos on existing CC's around JAN/FEB of each year? I got one way back but never saw another. I've also tried contacting them and asking but the chat support says they don't see any available.

Getting ready to install solar at the house and it would be awesome to be able to get a 0% APR BT going on it.

I've yet to see any promo's in the mail from NFCU, BOA, or AMEX. I got one recently from Chase but my Credit Limit with them isn't sufficient for what I'd need.

NFCU seems to offer a low or no APR BT in the beginning of the year but they don't always send email about it. This year they had targeted 0% and everyone else got 1.99%.

I also asked them and they will send you BT checks but they do not work for promo APR offers and will always hit your account at regular purchase APR.

Re: Balance Transfer Checks?

EaglesFan2006 — Fri, 22 Nov 2019 15:34:51 GMT

So I logged into Citi and saw I had two offers

1 BT for 0% promo until 9/2020 and 1 for 0.99% promo until 4/2021. Kind of an interesting option either way. I'm pretty sure I can pay it all off before September so 0 works, but having that 1% and an additional 7 months alleviates a bit of stress in case some emergency comes up. Rate goes to 19% after 9/21 with the 0%. I don't know something to think about I guess!

Re: Balance Transfer Checks?

K-in-Boston — Fri, 22 Nov 2019 16:00:23 GMT

@Shooting-For-800 wrote:
BE VERY CAREFULL...
If you do a 0%, do not charge ANYTHING to the account.
Ideally, pay off the card first, do the 0% check, charge nothing else EVER until it is paid off.
If you charge something on most cards, your 0% is over.

Cap One is the only bank that this does not apply to as far as I know...

Clarifying this, the 0% remains on the balance transfer portion, just not on the new purchase if the previous statement balance was not paid in full. If you have a $2000 balance transfer, a new $100 purchase, and a 23.99% APR on purchases, at most you'll end up being hit with $2-4 of interest depending on when the purchase was made in your statement cycle, whether it is a new BT, and when you pay as long as the total is at least minimum payment + new charge(s) + fees/interest.