Balance Transfer Checks–What are balance transfer checks anyway?
Cardholders may receive balance transfer checks in the mail from their creditors from time to time. These checks are generally attached to the monthly credit card statements. The creditors try to use temptation to get cardholders to use the cash to pay off existing bills or for extra cash in their checking accounts. The process is quick and easy, and cardholders can benefit from their decision to use balance transfer checks. Cardholders love the amazing convenience that balance transfer checks have to offer.
What Are Balance Transfer Checks?
Balance transfer checks are checks offered by credit card companies. The checks allow cardholders to write checks and transfer the money directly into their accounts, or pay off debts. The interest rates on the balance transfer checks may vary from 0% interest rate to a high interest rate after the introductory period. Credit card companies usually offer a low interest rate in the beginning to attract customers. Credit card companies send balance transfer checks to cardholders with the monthly statement for added convenience.
Benefits of Using Balance Transfer Checks
- Cardholders get to buy products now and pay for them later. Weddings, graduations, and birthdays occur each year. Cardholders have the ability to use balance transfer checks to pay for their purchases. With a 0% interest rate, cardholders can pay off the debt during the introductory period so that they only pay the principle on their purchases. Cardholders can also use the balance transfer check to pay for vacations and Christmas shopping. They receive a low interest rate or no interest on the purchase.
- Cardholders can make large purchases and save money. Using balance transfer checks is a great way to purchase expensive items for less. For example, if customers are offered a 10% interest rate to finance a flat screen television by the store’s finance company, and the cardholders’ credit card company offers 2% interest and a 3% fee, the customers saves money using the balance transfer checks. In some cases, 0% interest rates are available for an introductory period.
- The balance transfer check can deposit money directly into a checking account. Balance transfer checks can help cardholders make money on interest. The money can be used to purchase CDs, or the money can be placed in a high yield interest account to grow interest. Cardholders have much flexibility in what they can do with the money once they get the cash.
- Cardholders can perform home improvements without taking out a loan or second mortgage. Home improvements can be costly. Many people settle for high interest rates to make the improvements to their homes. It may take them a long time to pay off the loans. Using a balance transfer check is a better idea. The interest rates are lower, and cardholders can pay off the debt faster. Cardholders may be able to pay off the debt before the interest rate changes.
- Balance transfer checks offer a cheaper way to consolidate debt. Debt consolidation companies may charge fees for their services. Cardholders may have a temporary lowering of their credit for negotiating the account at a lesser amount of money. Cardholders can use the balance transfer checks to pay off the debts and raise their credit score. If the balance transfer checks offer a low interest rate, cardholders save money as well.
- Balance transfer checks help to reduce high interest rates on existing credit card accounts. Many department stores charge high interest rates to use their credit cards. Cardholders have the opportunity to reduce the high interest rate to a lower rate by using the balance transfer checks. Credit score is also improved.
How to Get Balance Transfer Checks
Balance transfer checks are easy to obtain. Credit card companies send balance transfer checks to cardholders in the mail with their credit card billing statements. They send them to customers every few months as a convenience to cardholders. Alternatively, cardholders can also call the credit card companies and request that they send balance transfer checks. Cardholders should receive the balance transfer checks in the mail in a few days.
Balance transfer checks are very convenient for cardholders to use. As long as cardholders use balance transfer checks responsibly, they do not have to worry about running into any financial problems. Make sure that the charges are clearly defined so that there are no misunderstandings when the credit card statement arrives. Balance transfer checks are an easy way to handle any financial situations.