• Ben

    Josh, you are completely ignoring the balance transfer fees, which are normally 3-5+%. People need to figure that cost into whether the transfer is worth it. There is no such thing as a free loan anymore.

  • http://profiles.google.com/zef.wagner Zef Wagner

    Not true. I just used one that is 0% for a year with no fee. They’re out there, they just only go to people with good credit ratings.

  • Wisemoney

    Josh, my question is about paying off credit card debt with 0%APR and 2% balance fee with the same credit card offer. I have a balance of $2000 on my card. Today, I received an offer from that card allowing me to deposit money into my bank with 0%APR for 12 months plus the transfer fee. I want to write myself a check for $2000 and then pay off my balance with this money. The result is that I pay off my card balance and now have 12 months interest free to pay borrowed money back. I will not be using this card again until I pay $2000 back avoiding the interest rate. Is this wise to do?

    • Joshua Caucutt

      It is best to not use the card, however, the new credit card legislation allows your payments to be applied to the balance subject to the portion of your balance subject to the highest interest rate. this is a handy change.

  • insidious

    “if you transfer $4,000 from Credit Card A for an overpayment of $3,750 on Credit Card B, you can use Credit Card B without having to make a payment to that card until the balance is gone.”

    Wouldnt the credit balance be on Card A rather than Card B? Thus, you would be using Card A rather than Card B.

  • triedcashback

    Josh, after reading your article I did a balance transfer offer (0%) apr to my chase visa of $15k – the card had a $100 balance. At Chase they are saying that they have to go through money laundering protocol, and are not guaranteeing that they will refund the overpayment (wait of up 7-10 days just for a response and up to 21 days if they do do the refund), so I am now stuck in limbo. One representative said the hassle was a result of a balance transfer of over $10k, the other said any overpayment of over $5k. In the meantime I have no access to the funds and am just waiting to see what happens.

    • Joshua Caucutt

      This may have gone more smoothly if you had requested a lower, “odd” amount. I.E. $7,435 or something similar.

  • Mark

    I have no debt, just got an offer for 0% apr for 15 months on new purchases. I have no balances to transfer and was looking to max it out and make a little bit of intrest in te mean time then pay off the balance in full. Will they really let me deposit their check into a bank account? How would you go about discussing this with the credit card company?



    • Joshua Caucutt

      Mark, In your case, I don’t think that a 0% APR balance transfer makes sense. In 2006 and 2007, it was possible to get a no fee or 3% fee transfer and then deposit the money into a savings account that paid 4, 5, even 6%. That said, you can often deposit balance transfer checks directly into your bank account.

      • mark


        Do credit card companies issue checks that can be used for purchases that are exempt from the typical 3% fee? i.e. deposit these to a bank account, being that there is a 0%APR on all NEW purchases for 15 months.

        Thanks for you help,


        • Joshua Caucutt

          No – there may be exceptions, but typically, a “purchase” offer is only for card swipes and usually there is no fee because the credit card company makes a percentage on every swipe. It is possible to benefit from a 0% purchase offer by using the card, only making the minimum payment and saving up the money that you would normally use in paying off the balance in an interest-bearing account. However, that is pretty complicated and I have avoided that strategy personally.

  • zale123

    Josh, I know I am crashing an old article here, but can you answer this question for me:

    Chase is offering me a 2% balance transfer of up to $15k. I want to have this money deposited into my bank account, but Chase will only allow up to $5k for bank account transfers per any 90 day period. If I use the “trick” you stated, and have the money transferred to one of my Citibank cards that has a small balance on it, do you think Citi will refund the rest in the form of a check?

  • JoeyF

    Useless information in this post.

  • Mario

    Can someone pay me with a balance transfer check

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