Using Balance Transfer Checks to your Advantage
Every once in a while you may receive a special package from your credit card company in the form of balance transfer checks. Balance transfer checks, which are typically provided to credit card holders with an excellent credit history, are an ideal way to make large purchases, pay off higher interest credit cards and make home improvements, just to name a few.
Convenience at your Fingertips
Balance transfer checks are convenient because they provide credit card holders with a more flexible way of paying off debt or making purchases. The best part of balance transfer checks is that they often come with a tempting rate. For example, many balance transfer checks offer a lower interest rate than your credit card. And most of the time the rate on the balance transfer check is good until the loan is paid off.
The next time you get balance transfer checks from your credit card company, check out the terms of the checks to see if the credit card company is offering you a good deal. If the balance transfer check rate is lower than your current credit card interest rate, and if there are no balance transfer fees, then you may want to take advantage of the offer.
Pay off Debt
Many cardholders use balance transfer checks to pay off other debts, including credit card bills, car loans and other installment-type loans. To pay off an outstanding debt and put it onto your credit card you need only write the check to the creditor and – voila! – you have just paid off another debt.
Make a Large Purchase
Other cardholders may use balance transfer checks to pay for large purchases, such as a car, vacation or home improvement. Because balance transfer checks are used like any other type of check, you may choose to write a check out to a contractor, a travel agency or a car dealership.
Write yourself a Check
Another great way to use balance transfer checks is to write the check to yourself for a specified dollar amount and deposit the money into your checking or savings account. You can then use the money in your bank account to pay off bills of any kind, or to use the money to purchase any number of things.
It is important to remember to use balance transfer checks wisely, and to think through purchases before you make them. However, as a credit card holder in good standing, you will have likely already mastered the credit card game, and will likely already understand the importance of paying your debts and being responsible regarding credit.
Finally, if you receive balance transfer checks from your credit card company and you choose not to use them, it is important to shred them immediately to prevent theft.
Balance transfer checks are yet another way that credit card companies reward good credit customers, so always remember to use them responsibly and to pay attention to the rate of the balance transfer checks, as well as the terms of the checks, as this could dictate whether or not it makes sense to transfer higher balance credit cards or to make large purchases.
Related posts:
(No Ratings Yet)
Loading ...
