How do balance transfer checks work? |
Balance Transfer Image

How do balance transfer checks work?

How to use a balance transfer check and what to watch out for.

Have you wondered why you got a blank check from a credit card company? Before you take these to the bank, learn more about what these balance transfer checks mean and how to use them.

What are balance transfer checks?

The credit card company wants you to take balances from other debt and will make you an offer on new balance transfer credit card.

Is this a good deal? It could be. By using these checks, you agree to open the company’s card and transfer a credit card balance to it. Balance transfer checks usually include promotional amounts and term length. They often boast APRs starting at 0% — depending on your creditworthiness.

How can you use a balance transfer check?

If you have a balance with another credit card and are paying a high APR each month you could benefit from a balance transfer check. Use the check by filling it out for the balance on your high-APR credit card or to yourself for a cash advance. This transfers your debt to the check issuer for better terms or APR.

Pro tip:

If you’re unsure whether a check is going to act as a cash advance with high fees, call the bank that sent it to you. Better to find out before you cash it!

Is using a balance transfer check a good deal?

Balance transfer checks can be a good deal if the rates are lower than what you’re paying. Here what to look for:

  • Length of introductory period. Introductory windows vary based on the lender and your creditworthiness. Shop around for one best for you. Perhaps a shorter window is all you need to pay off a smaller balance.
  • Intro APR. This APR differs from lender to lender. Some offers can be as low as 0%, but they can go as high as 4% based on your creditworthiness.
  • Revert APR rate. After the introductory period is over, the provider applies what people call a revert APR rate to any remaining balance. If you know you’ll still have a large balance, it may help to look for a balance transfer card with a lower APR.
Rates last updated April 23rd, 2018
Name Product Product Description Intro APR for Balance Transfer APR for Purchases ( Purchase Rate ) Annual fee Minimum Credit Score
Blue Cash Everyday® Card from American Express
Earn $150 back after you spend $1,000 in purchases on your new Card in your first 3 months. You will receive the $150 back in the form of a statement credit.
0% Intro APR for 15 months (with whichever is greater, $5 or 3% balance transfer fee)
14.49% to 25.49% variable
Fair (660-699)
The Chase Freedom® Unlimited™ credit card
Earn unlimited 1.5% cash back on every purchase – it's automatic. No minimum to redeem for cash back.
0% Intro APR for 15 billing cycles (with whichever is greater, $5 or 5% balance transfer fee)
16.24% to 24.99% variable
Fair (660-699)
Chase Slate® credit card
Jumpstart your financial fitness! 60 day introductory balance transfer offer, save on interest, and get your free monthly credit score.
0% Intro APR for 15 billing cycles (with $0 for transfers in first 60 days. Then $5 or 5% balance transfer fee)
16.24% to 24.99% variable
Fair (660-699)
BankAmericard Cash Rewards™ Credit Card
Earn more cash back for the things you buy most.
0% Intro APR for 12 statement closing dates (with whichever is greater, $10 or 3% balance transfer fee)
14.49% to 24.49% variable
Good (700-739)
HSBC Cash Rewards Mastercard®
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees
0% Intro APR for first 15 months from account opening (with whichever is greater: $10 or 4% balance transfer fee)
14.49%, 18.49% or 24.49% variable
Fair (660-699)
NASA Federal Platinum Advantage Rewards Credit Card
NASA Federal Platinum Advantage Rewards Credit Card
Enjoy perks and save money while gaining points that never expire with every purchase.
9.9% Intro APR for 90-days
11.40% to 17.99% variable
Fair (660-699)
DCU Visa® Platinum Secured Credit Card
A great way to establish or improve your credit history.
13.00% variable
Poor (Below 660)
primor® Secured Visa Gold Card
Fast, easy application process. No processing or application fees!
9.99% variable
Poor (Below 660)
Barclaycard Ring™ Mastercard®
A low, variable APR on purchases, balance transfers and cash advances.
10.49% variable
Good (700-739)
Discover it® Secured Credit Card
2% Cashback at restaurants or gas stations on up to $1,000 in combined purchases each quarter. Plus 1% cash back on all other credit card purchases.
10.99% Intro APR for 6 months (with the amount of each transfer, 3% balance transfer fee)
24.49% variable
Poor (Below 660)
Fifth Third Secured Card
Build, or rebuild, your credit with each purchase.
25.49% variable
Poor (Below 660)

Have we missed anything in the comparison table? Tell us

Compare up to 4 providers

Why am I getting this offer?

You may notice that balance transfer credit card offers always come from a different bank than your current card provider. Balance transfer checks are a benefit that providers use to earn your business from competitors.

Balance transfer checks vs. convenience checks

If you get a check in the mail from your bank or credit card, it could be a convenience check. These are used to make purchases or as cash advances instead of using a credit card. But be careful — they often don’t come with any APR benefit. They can accrue the same high rate as taking out a cash advance will — sometimes as high as 24%. You could also be charged a convenience fee as high as 4% of the check amount.

Balance transfer checks usually offer some sort of incentive — lower APR or longer terms and no fees. And they often come from a bank or credit card that you don’t already have a balance with.

Which is better really depends on your situation. If you’re working on building your credit and can’t qualify for another credit card, using a convenience check may suit you. Though you could pass on the checks, save on fees and simply use the card for a purchase. Balance transfer checks are better if you want to change credit cards to get a better APR or extended time to pay off a balance.

What to look out for

  • Change from intro APR to a higher one. Once your intro APR window closes, you’ll revert to a higher APR. Any balance you haven’t yet paid off begins earning interest just as it would with any other credit card.
  • You’ll pay for cash advances. Balance transfer checks that act as a cash advance carry a higher interest rate.
  • Transaction fees and finance charges may apply. You could be on the hook for transaction fees of as high as 5% of the borrowed amount.

Consolidate and pay off debt with a large balance transfer

How to stop these offers from coming

Balance transfer checks can be tempting and have potential to get you into financial trouble. They also can lead to fraud if someone finds them and cashes them in your name. Always shred these checks if you don’t plan on using them.

If you’re not interested in balance transfer checks clogging up your mail box, tell the credit card company to stop sending them. Send the credit card issuer a secure online message, mail or call them directly. If it’s a local bank, walk into the branch and request that you no longer get its promotional mail.

Bottom line

Looking into the different types of balance transfer cards and comparing them against balance transfer checks can make a big decision that much easier. A balance transfer check allows you to convert some of your credit into cash to pay another lender, but that money isn’t free. There’s still a time limit to the 0% APR and minimum payments to be made, and it still shifts that credit balance over to the card you wrote the check from.

Balance transfer calculator

Your current credit cards:

Amount Owing


Card 1

Card 2

Card 3

Card 4

Card 5

Card that you are transferring to:

Intro APR

Intro Term (months)

Ongoing APR

Balance Transfer Fee

Annual Fee

Your monthly repayment

At this rate, you will not pay off your debt.
At this rate you will pay off your debt during the card's intro period

At that rate you will not pay off your debt. You will need to make higher repayments.

Months that it will take you to pay off your debt:

With a balance transfer
12 months

Without a balance transfer
15 months

Money saved transferring debt to a balance transfer card:

Savings = $1,000

By moving forward with a balance transfer credit card and transferring the maximum amount, you could be saving $1,000 on fees and interest charges.
You will save an infinite amount of money as you will not pay off your debt on your current cards at that rate.
In this case, a balance transfer card is not the best option. You might want to consider a personal loan to help consolidate your debt. You can find out more here.
Disclaimer: Whilst every effort has been made to ensure the accuracy of this calculator, the results should be used as indication only. Certain assumptions have been made around the repayments made. This calculator is neither a quote nor a pre-qualification for a credit card
Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.

2 Responses

  1. Default Gravatar
    SusanJune 26, 2017

    When you use a balance transfer check to pay off an auto loan can you write the check for more than the loan and have the bank give you the difference?

    • Staff
      AnndyJuly 4, 2017Staff

      Hi Susan,

      Thanks for your question.

      Generally, when you request a balance transfer, you’ll have to provide the details of your current lender you have a balance with. A balance transfer check is then written directly to that lender or to yourself. In either case, the amount written is the total debt you owed with the lender you listed. Kindly note that the amount of the check will also depend on how much credit limit you have.

      This is just a general rule, other banks may have exceptions. You may have to directly call the bank where you are transferring your balance to and inquire if this is possible.


US Credit Card Offers

Important Information*
Deserve® Classic Card
Deserve® Classic Card



Annual fee

0 For the first year
More info
Luxury Card Mastercard® Gold Card™
Luxury Card Mastercard® Gold Card™



Annual fee

0 For the first year
More info
The First Access VISA® Credit Card
The First Access VISA® Credit Card



Annual fee

75 For the first year
More info
Indigo® Platinum Mastercard® Credit Card
Indigo® Platinum Mastercard® Credit Card



Annual fee

75 For the first year
More info
Go to site