Balance transfer checks

[Anonymous]

Hi everyone. I don't quite understand how balance transfer checks work. Let's say I have a Cap one CC with 1000$ CL and 300$ are available as cash advance. So, if I want to deposit the BT check to my checkig account can it  be for, let's say, 900$ or is it considered as cash advance and therefore the max would be 300$? And also, can I just order blank BT checks and fill it out, or are they coming preprinted with a fixed ammount or something like that? Thanks a lot

[DaveInAZ]

No, BT checks do not count as cash advances, they count as a BT whether you make the check out to yourself and deposit it into your bank account or it you make it out to a creditor and mail them the check. The checks are blank, you can make them payable to anyone for any amount up to your credit limit.

But I recommend your don't take any credit card over 50% of credit limit, though either BT or purchases, a CC reporting a balance over 50% of credit limit lowers your credit score by quite a bit.

[Anonymous]

Thanks for your reply. And just out of curiosity, do all CCC offer BT checks? Ive heard AmEx doesnt have this option. Is it true? Thanks again

[RobertEG]

Some creditors do BTs by making the actual payment to your desingnated credtior, and thus do no issue checks that permit you to deposit in your own account, and thus use any way you choose.

By doing the balance transfer themselves, they assure that the money is being used to actually pay down existing debt, and also to ensure that you dont use the money to pay other cards from the same creditor.

Issing checks is a lot riskier for the creditor, as there is no assurance that the funds will actually be used to pay other debt, and thus the consumer might use the money to make other purchases rather than pay debt.

[DaveInAZ]

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@Anonymous wrote:

Thanks for your reply. And just out of curiosity, do all CCC offer BT checks? Ive heard AmEx doesnt have this option. Is it true? Thanks again

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I haven't heard of Amex issuing BT checks, but on new accounts they often offer BTs within the first two months or so. I got an Everyday card in March and BT's $2500 from Discover to it, but you had to enter the CC account # on their website and they transferred the money directly to Discover. Yes, it's more risky for CC companies to issue BT checks that can be used for most anything but some aren't concerned about that. Discover will allow you to deposit a "BT" directly into an bank account you have used to make payments on the account.