Balance Transfer Checks: How to Use Them the Right Way

Many credit cards offer introductory 0% APR promotions to incentivize people to apply as new customers. But after that promotional interest rate period ends, you may still find yourself carrying a balance and wanting low-interest financing, and you may not want to apply for yet another credit card.

Fortunately, some credit card issuers offer the chance to get ongoing 0% APR offers in the form of balance transfer checks. If you’ve ever received a balance transfer check in the mail or are looking for the chance to save money on credit card interest, here’s everything you need to know.

Key takeaways

• Balance transfer checks are paper checks that are connected to a credit card. Balance transfer checks can help you move existing debt to your credit card, which could help you if you've got an intro 0% APR for balance transfers on your card.
• Balance transfer fees typically apply to balance transfer checks. These fees typically range between 1% and 5% of the transferred amount.
• You can use a balance transfer check to pay back a loan, consolidate debt, or move a balance to a credit card with a lower interest rate.
• Credit cards such as the Citi^® Diamond Preferred^® Card and Citi Double Cash^® Card offer introductory APR periods on balance transfers. Citi may send you balance transfer checks in the mail with your credit card statement. You can also request checks over the phone.
• Balance transfer checks are different from convenience checks. While both serve a similar purpose, convenience checks are considered cash advances with higher fees and no introductory APR.

What is a balance transfer check?

Balance transfer checks are paper checks tied to your credit card instead of a checking account. Their purpose is to make it easy to transfer a balance from another credit card to the card that’s issuing the check. Banks issue these to encourage cardholders to continue using their credit card accounts.

Balance transfer checks frequently offer an introductory 0% APR, but using one will also cause you to incur a balance transfer fee — typically between 1% and 5% of the transferred amount. For example, if you write a check for $1,000 and the balance transfer fee is 3%, $30 will be added to your card’s balance in addition to the $1,000 check amount.

Because of the way they’re designed, though, you can use a balance transfer check for just about anything you want, not just balance transfers. You could write the check to another lender to consolidate your debt to one place, for instance, or move it to your credit card if it has a lower interest rate. Or you can write the check to yourself, deposit it into your checking account, and use that cash for everyday expenses.

Balance transfer checks vs. convenience checks

Balance transfer checks aren’t the only checks you may receive from your credit card company. Convenience checks can often be attached to your statement at the end of the month and effectively allow you to do the same thing you can do with balance transfer checks.

The difference is that convenience checks are considered cash advances. This means that in addition to a cash advance fee — which is typically higher than a balance transfer fee — you also won’t get any introductory interest rate on the deal. 

As a result, it’s important to read the terms of any blank check you receive from your credit card issuer. On the surface, the checks may look the same, but read the fine print and watch out for language that provides more insight. For example, if there’s no 0% APR promotion mentioned, the APR mentioned is higher than your card’s regular APR, or the terms contain verbiage about interest accruing from the date of the check deposit, it’s likely a convenience check.

Even if you’re sure you’re holding a balance transfer check, always read the fine print to understand all the terms and conditions of the balance transfer offer. The last thing you want is an unexpected surprise when what you’re trying to do is save money.

How to use a balance transfer check

Some card issuers will send them to you of their own volition; others may give you the option to request one. Check your online account or call customer service to find out if you can request a balance transfer check. Once you receive them, balance transfer checks look and act the same way as personal checks, so it’s important to treat them as such.

If you’re planning to use one to pay off another credit card, write the check out to the credit card issuer and send the payment by mail. You can use it to make a payment on a personal loan by making the check out to the lender that holds your loan.

Alternatively, you can write the check to yourself, deposit it into your checking account, and make a payment to your credit card account or personal loan online.

When you receive balance transfer checks in the mail, you’ll usually get a handful of them. 

After the check is deposited by the recipient, you’ll see it posted on your associated credit card account, along with the balance transfer fee. You’ll then have however long the offer said to pay off that transferred balance free of interest charges.

When is a balance transfer check a good idea?

A balance transfer check can be a good idea in several situations, but it’s always important to practice good financial habits.

It may be worth it to use a balance transfer check if you’re dealing with some unexpected expenses, and the alternative is putting the charges on the card at its regular APR for purchases. Even with the fee associated with the check, you could end up paying far less than what you’d owe in interest. This way, instead of consolidating high-interest credit card debt, you’re avoiding it in the first place.

It’s definitely worth using a balance transfer check for its intended purpose: paying off another credit card. For example, you could move the balance of a high-APR credit card to a balance transfer card with a 0% promotional offer. This could lower your monthly payments.

A better financial move would be paying more than the minimum payment and paying down the balance before the end of the 0% period. You could also pay off other higher-interest debt, such as a personal loan with a high APR. 

Regardless of how you choose to use a balance transfer check, it’s important to do the math, comparing the check’s fee with the potential savings you’d gain by using its 0% interest offer.

Also, double-check to see if you can get a better 0% APR offer from a different credit card — maybe for a longer period or with a lower balance transfer fee. Even if the idea of applying for another credit card is unappealing, it can be worth it if you stand to save a lot more that way.

Balance transfer credit cards we recommend

If you’re considering using a balance transfer check to move a balance from one credit card to another and you'd like to do it with a new credit card, here are some of the best balance transfer cards for the job: 

BankAmericard^® credit card

The BankAmericard^® credit card is a good choice for a balance transfer credit card due to its introductory balance transfer offer:

• 0% for 18 billing cycles for any qualifying balance transfers made in the first 60 days (then 15.74% - 25.74% Variable). There's a balance transfer fee of 3% for 60 days from account opening, then 4%.

It has a $0 annual fee, access to your FICO score, and no penalty APRs. 

Learn more in our BankAmericard review.

Citi^® Diamond Preferred^® Card

The Citi^® Diamond Preferred^® Card is another solid choice for a balance transfer card because it provides one of the longest 0% intro APR periods available. You’ll get:

• 0% intro APR for 21 months (then 17.74% - 28.49% (Variable)) on balance transfers made within the first four months after account opening.
• 0% intro APR on purchases for 12 months (then 17.74% - 28.49% (Variable)).

The caveat is that the card charges a balance transfer fee of 5% of each balance transfer ($5 minimum), which is about as high as it gets with major credit cards. That said, the card can be a solid choice if you want to maximize the amount of time you have to pay off your credit card debt.

Check out our Citi Diamond Preferred Card review.

Citi Double Cash^® Card

The Citi Double Cash^® Card comes with intro APR on balance transfers. You can benefit from:

• 0% intro APR on balance transfers for 18 months (then 18.74% - 28.74% (Variable)).

This gives you plenty of time to pay off or significantly pay down your credit card debt. Its balance transfer fee is 3% of each balance transfer ($5 minimum) within 4 months of account opening; then 5% of each transfer ($5 minimum) after the 4 month intro period ends.

That said, the card doesn’t have an APR promotion on purchases, and if you make purchases while you’re still paying off your balance transfer, they’ll accrue interest immediately, so avoid charging anything new to this card until after you’ve paid off the transferred balance.

Learn more at our Citi Double Cash Card review.

U.S. Bank Visa^® Platinum Card

The U.S. Bank Visa^® Platinum Card is a great card if you want a long promotional period on both purchases and balance transfers. This credit card offers:

• 0% intro APR for 21 billing cycles (then 18.24% - 29.24% (Variable)) on balance transfers.
• 0% APR for 21 billing cycles (then 18.24% - 29.24% (Variable)) on new purchases.

These are the longest intro APR periods I’ve found from a single card when looking at both purchases and balance transfers.

That said, this card has no rewards program, so you’ll have to decide whether using this card is still worth it to you after the promotional interest rate period ends. The balance transfer fee is 5% of the amount of each transfer or $5 minimum, whichever is greater.

Get more details in our U.S. Bank Visa Platinum Card review.

FAQ about balance transfer checks

Balance transfer checks: bottom line

Balance transfer checks can be a great way to help you with debt consolidation or covering some other essential expenses. Before you use one, however, make sure you read the fine print to understand the terms, and do the math to determine whether it’s the right financial step for you.

Extra Long Intro APR on Purchases & Qualifying Balance Transfers

Wells Fargo Reflect^® Card

4.9

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Wells Fargo Reflect^® Card

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Rates and fees

Current Offer

Benefit from a long introductory APR period on purchases and qualifying balance transfers

Annual Fee

$0

Benefits and Drawbacks

Benefits

• 0% intro APR for 21 months from account opening on qualifying balance transfers, then 17.74%, 24.24%, or 29.49% Variable APR
• Up to $600 Cell phone protection when you pay for the cell phone with your card (subject to a $25 deductible)
• $0 annual fee
• The ongoing APR may still be competitive compared to other cards

Drawbacks

• No rewards for spending
• 3% foreign transaction fee
• 5%, min: $5 balance transfer fee
• Limited list of card perks

Card Details

• Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
• 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.74%, 24.24%, or 29.49% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
• $0 Annual Fee.
• Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
• Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It's an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.