What is the advantage of a BT to a checking account?

[AverageJoesCredit]

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@sxa001 wrote:

Thank you everyone for the feedback, you mentioned considerations that I didn't think about.  Just simply making it easier to pay off the card out of your checking account versus using one of the BT checks or having them pay the creditor directly.  I have only done on BT for 0% for a year once on CapitalOne to pay off a personal loan (that had a much higher interest rate).  I guess for future reference it is good to know some lenders do allow BT into a checking account.  I don't have any needs for one right now, but I used to always wait until they sent me the checks, I was pretty ignorant and thought that was only way to get offers. 

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Yeah its a great option. When i had them, i could get deposited into my checking account  by Discover,  Citibank and Bank of America. Though sometimes as in case with Boa, your interest rate can be higher for the direct deposit if you dont pay off in the promo period.

[adelphi_sky]

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@Turbobuick wrote:

A while back Barclays was sending me BT checks with every statement. Most were 15 months interest free with only a 1% transfer fee. That meant borrowing $10,000 cost me just $100... almost free. At that time the stock market was soaring, so I opened a brokerage account with the money and almost doubled it in a little over 2 years. I still had to pay back that $10,100, but if one is short on cash, the transfer checks can be handy for any needs when it's liquid in your checking or savings account.  

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This. If you are fairly good at investing, you can take any cash and get a 10% return or better in the stock market over 15 months. You don't even have to be a day-trader. That's what banks do with our money anyway. We put money in a savings, they go invest it and get at worst 4% return and at best over 10% and give us 0.8% as a thank you for giving them your money to make them money. 

I think a BT deal for 15 months at 0% is one of the safest ways to take other people's money and try to gain some profit. It's sorta like margin in your brokerage account - if you have assets to pay the bill when it becomes due. But for BTs, you have a monthly payment plan. But that assumes you made 0% in the stock market and have to start paying when that bill comes due. 

These days you could dump the money on AAPL and TSLA and you'd have a guaranteed return. 

FYI: I'm not sure if there are any laws against this. 

[longtimelurker]

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@adelphi_sky wrote:

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@Turbobuick wrote:

A while back Barclays was sending me BT checks with every statement. Most were 15 months interest free with only a 1% transfer fee. That meant borrowing $10,000 cost me just $100... almost free. At that time the stock market was soaring, so I opened a brokerage account with the money and almost doubled it in a little over 2 years. I still had to pay back that $10,100, but if one is short on cash, the transfer checks can be handy for any needs when it's liquid in your checking or savings account.  

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This. If you are fairly good at investing, you can take any cash and get a 10% return or better in the stock market over 15 months.

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Interesting, I was going to post the contrary view, "But be careful about doing this"

I still think it's more "You can get a 10% return or better, except when you can't"       There is some risk that you lose money and  have to dip into other assets to pay off the BT when the 0% ends.   Up to the individual to determine the risk/reward, not everyone wins in the stock market

[Turbobuick]

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@longtimelurker wrote:

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@adelphi_sky wrote:

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@Turbobuick wrote:

A while back Barclays was sending me BT checks with every statement. Most were 15 months interest free with only a 1% transfer fee. That meant borrowing $10,000 cost me just $100... almost free. At that time the stock market was soaring, so I opened a brokerage account with the money and almost doubled it in a little over 2 years. I still had to pay back that $10,100, but if one is short on cash, the transfer checks can be handy for any needs when it's liquid in your checking or savings account.  

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This. If you are fairly good at investing, you can take any cash and get a 10% return or better in the stock market over 15 months.

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Interesting, I was going to post the contrary view, "But be careful about doing this"

I still think it's more "You can get a 10% return or better, except when you can't"       There is some risk that you lose money and  have to dip into other assets to pay off the BT when the 0% ends.   Up to the individual to determine the risk/reward, not everyone wins in the stock market

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Like running with scissors, most folks here are reasonable adults and know the possible consequences. The only "sure thing" in life is death.

[SouthJamaica]

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@sxa001 wrote:

I am not sure if this is the right forum for this question.  I have seen several mentions of people doing a BT to a checking account when they get good 0% offers.  I am curious what the advantages of doing this is.  Are people putting the money into a HYSA and then just trying to gain on that money while the balance is at 0%?  I suppose it is being viewed as free money, but I suppose it would only be good if you don't carry a balance on any other cards otherwise it could impact your scores?  I suppose it only makes sense on offers 12+ months of 0%?

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It's not free money. The advantage is that it usually goes quicker, gives you more ease, speed, and flexibility in sending the money where you want it to go, and gives you the option of using it to pay someone other than another lender.

[FlaDude]

Most BT offers disallow paying an account with the same issuer. By depositing it into a checking account, you can get around that, and even use the new BT to pay off an expiring promo balance on the same card.

[Anonymous]

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@longtimelurker wrote:

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@adelphi_sky wrote:

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@Turbobuick wrote:

A while back Barclays was sending me BT checks with every statement. Most were 15 months interest free with only a 1% transfer fee. That meant borrowing $10,000 cost me just $100... almost free. At that time the stock market was soaring, so I opened a brokerage account with the money and almost doubled it in a little over 2 years. I still had to pay back that $10,100, but if one is short on cash, the transfer checks can be handy for any needs when it's liquid in your checking or savings account.  

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This. If you are fairly good at investing, you can take any cash and get a 10% return or better in the stock market over 15 months.

---

Interesting, I was going to post the contrary view, "But be careful about doing this"

I still think it's more "You can get a 10% return or better, except when you can't"       There is some risk that you lose money and  have to dip into other assets to pay off the BT when the 0% ends.   Up to the individual to determine the risk/reward, not everyone wins in the stock market

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Upvote times infinity.

[dragontears]

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@Turbobuick wrote:

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@longtimelurker wrote:

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@adelphi_sky wrote:

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@Turbobuick wrote:

A while back Barclays was sending me BT checks with every statement. Most were 15 months interest free with only a 1% transfer fee. That meant borrowing $10,000 cost me just $100... almost free. At that time the stock market was soaring, so I opened a brokerage account with the money and almost doubled it in a little over 2 years. I still had to pay back that $10,100, but if one is short on cash, the transfer checks can be handy for any needs when it's liquid in your checking or savings account.  

---

This. If you are fairly good at investing, you can take any cash and get a 10% return or better in the stock market over 15 months.

---

Interesting, I was going to post the contrary view, "But be careful about doing this"

I still think it's more "You can get a 10% return or better, except when you can't"       There is some risk that you lose money and  have to dip into other assets to pay off the BT when the 0% ends.   Up to the individual to determine the risk/reward, not everyone wins in the stock market

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Like running with scissors, most folks here are reasonable adults and know the possible consequences. The only "sure thing" in life is death.

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You would think things like this would be obvious and people would realize the consequences but since we have to put "caution hot" on coffee cups, my faith in people is not very high......