Everything You Need To Know About Balance Transfer Checks

Many individuals carry at the least one bank card stability from month to month. The truth is, a 2023 Bankrate survey indicated that 49 % of cardholders carry such a revolving debt — and that share has risen over the previous few years, with solely 39 % of cardholders carrying a stability in 2021.

Since so many individuals are coping with excellent bank card balances, many main bank card issuers provide the choice to switch these balances from one issuer’s card to a card with a special issuer and a decrease rate of interest. At present’s finest stability switch bank cards include at the least 12 months of 0 % introductory annual share price (APR), permitting you the chance to pay down your transferred stability earlier than it begins to accrue curiosity.

A couple of bank card issuers additionally provide stability switch checks, which provide the possibility to finish your switch with a paper test as an alternative of requesting a stability switch on-line or over the cellphone. Steadiness switch checks may help you repay bank card debt, however they don’t all the time include the identical perks as a stability switch bank card — they usually could include increased charges or rates of interest.

Let’s take a better have a look at how stability switch checks work, learn how to request them and whether or not utilizing them to repay debt is a good suggestion.

What are stability switch checks?

A stability switch test is a paper test supplied by a bank card issuer that permits you to switch a stability from one bank card to a different bank card with a special issuer. Bank card corporations typically situation clean switch checks so their prospects will transfer an owed stability from a competitor’s bank card to their account.

Nonetheless, not all bank card issuers provide stability switch checks. The truth is, stability switch checks have fallen out of recognition in recent times. Since a lot of our day-to-day banking expertise takes place on-line, stability transfers have moved on-line as effectively. That mentioned, a couple of issuers nonetheless make stability switch checks accessible to cardholders — and plenty of issuers nonetheless help you request a stability switch over the cellphone.

How do stability switch checks work?

Steadiness switch checks work so much like a typical stability switch you’d carry out between a daily bank card and a stability switch card. However as an alternative of you making a direct on-line switch from the cardboard with debt to the stability switch card, you’ll write a test from the corresponding card in opposition to the cardboard with debt so you may repay that card’s stability. Additionally, the quantity you switch can not exceed your stability switch card restrict. This implies the stability you switch to your bank card can not take you over your complete credit score restrict on that card.

Let’s think about this instance: Credit score Card A comes with introductory 0 % APR stability switch checks. You resolve to make use of considered one of your stability switch checks to repay a $1,000 bank card stability you’re at present carrying on Credit score Card B that has a excessive APR. You make your stability switch test from Card A out for $1,000 and use it to make a cost in opposition to Card B. At that time, Card B’s stability is cleared out — however Card A has $1,000 added to its stability (plus any related stability switch charges) because you simply used a stability switch test to borrow $1,000 from Card A to repay Card B.

That’s how a stability switch test may help you consolidate your debt and handle your bank card balances. If Credit score Card A presents decrease rates of interest than Credit score Card B, transferring a stability to Credit score Card A may prevent some huge cash in curiosity fees.

Take the time to do the mathematics with our bank card stability switch calculator to find out the period of time you’ll have to repay your debt.

Steadiness switch checks vs. comfort checks

Along with stability switch checks, some bank card issuers provide comfort checks. These checks help you write a test in opposition to your accessible credit score and deposit the test wherever checks are accepted — in your personal checking account, with a retailer or utility supplier and so forth. Nonetheless, comfort checks are handled like bank card money advances and infrequently include extraordinarily excessive charges and rates of interest.

In some circumstances, a bank card issuer could give you a test that may perform as both a stability switch test or a comfort test, relying on the way you deposit it. In the event you use the test to switch a stability from one card to a different, it turns into a stability switch test. In the event you write the test to another person or deposit the test into your checking account, it’s handled like a comfort test — even in the event you use the cash to repay your bank card stability. To keep away from surprising charges, learn the nice print and, if unsure, contact your issuer for clarification.

Issues earlier than utilizing a stability switch test

Each stability switch checks and stability switch bank cards usually include stability switch charges. This implies you’ll pay a price for each stability you switch, usually within the type of a share of the transferred stability. Most stability switch bank cards cost between 3 % and 5 %, which suggests you’ll pay between $30 and $50 in charges for each $1,000 you switch. Steadiness switch checks can have considerably increased stability switch charges than stability switch playing cards, so it’s vital to seek the advice of the charges part of your bank card settlement earlier than utilizing them.

Another excuse to learn the nice print earlier than utilizing a stability switch test is to search out out your stability switch APR and whether or not you’ll get to reap the benefits of any introductory APR promotions. Whereas the very best stability switch bank cards provide a 0 % intro APR on stability transfers for a yr or extra, not all stability switch checks provide the identical profit. In case your stability switch checks don’t embody a 0 % intro APR interval, you’ll begin paying curiosity in your stability as quickly because it’s transferred.

You must also be sure to’re coping with a stability switch test and never a comfort test, which lets you take out a money advance in opposition to your bank card. Whereas you need to use a money advance to repay bank card debt, comfort checks usually include excessive APRs and vital money advance charges. Understanding the distinction between a stability switch test and a comfort test may help you keep away from making an costly mistake.

Even when your stability switch test presents a 0 % introductory rate of interest, that doesn’t imply the identical promo APR applies to your purchases. Make sure to test particularly for a card with a 0 % intro APR on purchases if that’s what you want.

Which issuers provide stability switch checks?

Every bank card issuer has its personal technique of issuing stability switch checks. Some bank card issuers, equivalent to Citi, could ship stability switch checks to eligible cardholders. Different issuers, equivalent to Financial institution of America, could help you request stability switch checks. Wells Fargo presents SUPERCHECKS that can be utilized as comfort checks or stability switch checks, and Capital One may help you fill out an digital test which can switch the funds to a different bank card account. U.S. Financial institution presents stability switch checks throughout varied promotions

In the event you’re concerned about acquiring stability switch checks, it might be finest to contact your issuer to verify they’re at present being supplied and to see in the event you’re eligible. It might be simpler to finish a stability switch on-line or over the cellphone, so ensure that to think about all of your choices.

Is utilizing a stability switch test best for you?

In case your stability switch test presents advantages on par with as we speak’s finest stability switch bank cards, then utilizing it to consolidate debt and repay previous balances could be a good suggestion.

Alternatively, stability switch checks that include excessive charges and excessive stability switch APRs are hardly ever your best option — particularly as a result of there are possible many stability switch bank cards which may be accessible to you that can provide decrease charges and higher phrases.

Steadiness switch checks aren’t your solely possibility for paying down bank card debt. In the event you’re not concerned about utilizing a stability switch test or stability switch card to repay debt, you would possibly need to think about different fashionable debt compensation strategies, equivalent to utilizing a low-interest private mortgage to repay your bank card or working with a credit score counseling service to learn to create a finances, consolidate your money owed and extra.

In the event you’re concerned about extra debt steering, take a look at our bank card debt assets to find how one can higher handle your debt, and likewise confer with our debt compensation calculator.

The best way to decide out of stability switch checks

Some issuers will maintain sending stability switch checks now and again, even in the event you haven’t particularly requested them. In the event you don’t need to get these checks, you may select to decide out of such advertising and marketing presents.

Do that by contacting the issuer immediately — both by cellphone, on-line, by way of electronic mail or common mail. Your card ought to have a customer support quantity on it. Use that contact info to observe up with a customer support consultant and inform them of your desire. You might additionally search for your card account on-line and observe the knowledge accessible there to decide out of promoting presents.

FAQs

The underside line

Steadiness switch checks may help you consolidate your bank card debt and repay previous balances — however not all provide the identical phrases because the main stability switch bank cards. Be sure that the test you need to use for a stability switch just isn’t a money advance comfort test that carries a a lot increased price than a daily stability switch test. That’s why you need to confirm the rate of interest earlier than you employ a stability switch test. In some circumstances, utilizing a stability switch test to repay debt will likely be much less cost-effective than making use of for a stability switch bank card.