What the heck are those checks for anyway?

[fused]

My wife and I have used BT checks in the past and it saved us a lot of money. Like Watchman said, read everything very carefully. Know the transfer fee amount, expiration date of the promo, what happens if you don't pay off the balance in time and so forth.

[Anonymous]

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Uniqua wrote:
I think I understand this a little bit. But, who in the world would use these? They seem just as bad as cash advances.

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<waving hands wildly in the air>  I would.  I would.  But ONLY under the EXACT right circumstances.  Whenever I use one, RULE #1 is to ONLY do it on a card that presently has a ZERO balance. 

RULE #2 is once I use a balance transfer check on an account, that card is sockdrawered until the whole thing is paid off (including the last little penny in interest charges).

Generally they come in 2 flavors: 

1 - 0% interest or low % interest rate for a VERY LIMITED time OR

2 - a higher interest rate for the life (until you pay it off)

They almost ALWAYS have an upfront fee of 3% and sometimes, if you're lucky, those fees are capped.

Right now I have 3 cards that I used these checks on.  One is fixed at 3.99% until it's paid, one is fixed at 4.99% until it's paid and one is fixed at 0.00% until August.

But if I don't have an immediate NEED to use one of them, they go into the shredder along with MV's checks.

[Uniqua]

I guess I understand some of what you guys are saying. But for me, personally, I don't see any reason what so ever why I would use them, even if I wanted to do a BT. Any check I write is used for funds directly from my checking account(s). I don't even know why they print those things up. I guess I'll never completely understand it!

[Anonymous]

They are dangerous. Shred to pieces ASAP!

[Anonymous]

The checks are there to have that many more pieces of paper floating around with your account number to be stolen by identity thieves.

Seriously, I shred them as soon as I get them. Waste of perfectly good trees. Not to mention that most of them have fine print of all the terms, conditions, surcharges, etc., etc., etc.

[JayBeast]

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@Anonymous wrote:
Waste of perfectly good trees.

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If it makes you feel any better, don't think of them as good trees, but think of them as criminal trees that deserved to die.

Regardless of how you think of them. SHRED THEM!!!!

[Anonymous]

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@Anonymous wrote:
The checks are there to have that many more pieces of paper floating around with your account number to be stolen by identity thieves.

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EXACTLY! It's like making photo copies of your credit card number and handing them out to complete strangers. If your checks get lost.

[Anonymous]

I just used one for the first time.  1.89% until 4/09.  3% fee. I didn't see any dangerous hidden stuff but we'll see.  I think they're better than cash advance.  I plan on paying it immediately anyway.

[Anonymous]

The one and only time I have used one was on my USAA Mastercard to buy a box trailer, and I went over the fine print about a dozen times first, and confirmed the terms with a USAA rep. 

I used it because:

1. The interest rate was the same as the purchase rate on the card, and would not change to a higher rate in the future.  Note: this is very unusual, and may be unique to USAA.  If this had not been the case, we wouldn't have used the check- probably gotten a personal loan instead.

2. We didn't have a spare $4k in cash to buy the trailer, and the trailer place didn't take plastic.

3. The purchase rate on the CC was lower than a personal loan, a trailer doesn't qualify for a secured loan, and we couldn't get a business loan since the business is "too new".

-MsMS

[Uniqua]

Received more of these checks in the mail the other day from my second CU. At least theirs explained in detail that they were basically cash advance checks and the finance charges would start immediately once the checks posted to my CC account. They said these checks were my reward for having good credit with them. Where are these peoples' brains? My current APR is low which I don't pay since I PIF every month, so why in the world would I use these checks at an APR of 21%. Sounds pretty ridiculous to me. I need a new shredder. My current one can't take any more!