katleho Seisa / Getty Images

Balance Transfers

Balance transfer checks: All you need to know

A balance transfer check can help you consolidate debt and avoid paying high interest. These tips will help you use a balance transfer check smartly


If you want to transfer a balance from a high-interest credit card to another card with no or lower interest, a balance transfer check can help. But balance transfer checks come with both benefits and potential drawbacks. Here’s how to decide if a balance transfer check is right for you.

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

From time to time, your credit card company may send you balance transfer checks in the mail. You can use these promotional offers to consolidate high interest credit card debt and potentially save money.

If you’ve received a balance transfer check or you’re interested in getting one, these tips can help with understanding how they work and how to use them.

See related: Best balance transfer credit cards

What is a balance transfer check?

A balance transfer check is a paper check issued by a credit card company. You can write this check out to transfer balances between credit cards.

But why do balance transfer checks exist in the first place?

“Credit card companies issue blank balance transfer checks in hopes that their customers will move an owed balance from a competitor’s credit card to their credit card account,” said Ryan Inman, founder of Financial Residency and Physician Wealth Services. “The idea is that the company issuing the balance transfer check will gain interest and potential fees from the customer.”

You don’t necessarily need to be a customer of the credit card company mailing out balance transfer checks to receive them, either. They can also be mailed out to prequalified customers, said Larry Duffany, a Ramsey Preferred financial coach and founder of Raising Hope.

In that scenario, the credit card company that sent you the check is hoping to attract your business using a 0% or low introductory APR offer. Using the balance transfer check would mean opening a new credit card account with the company that sent it to you.

How do balance transfer checks work?

A balance transfer check looks similar to any other check, but the difference lies in how it can be used. When you write out a balance transfer check, you’re using it specifically to pay off another credit card balance.

“You simply write a check as you would for any payment,” said Debbi King, personal finance expert and author of “The ABCs of Personal Finance.” “When the old credit card company cashes the check, the funds will be charged to the new credit card company in addition to a fee – anywhere from 3% to 5%, usually.”

Here’s an example of how a balance transfer check works:

  • Say you owe $5,000 to American Express and you receive a balance transfer check in the mail from Citi.
  • You make out the balance transfer check to American Express for $5,000.
  • Once it’s received, your account is credited for that amount, reducing your balance to $0.
  • Meanwhile, you now owe Citi $5,000 for the transfer, along with any balance transfer fee due on the transaction.

Some balance transfer checks may also give you the option to write the check out for cash. You could then use the money to pay off debts other than credit cards.

It’s important to note that a balance transfer check is not a blank check, in the sense that you can write it out for any amount you choose. The maximum amount you can transfer is determined by the credit card company issuing the check, similar to the way credit card companies set your card purchase limit or cash advance limit.

As far as balance transfer check fees go, those are applied to your balance the same way they would be if you transfer a balance online. Going back to the previous example of a $5,000 balance transfer, assume that the credit card company charged a 3% balance transfer fee. Your new balance owed would be $5,150 ($5,000 x .03 = $150).

See related: What is a balance transfer? And is it a good idea?

What to consider when exploring a balance transfer check

If you’re interested in taking advantage of a balance transfer check, it’s helpful to evaluate it the same way you would any other balance transfer or promotional financing offer.

“Always read the fine print,” Inman said. “The credit card issuing the check might be offering 0% interest on that balance transfer, but it might come with a stiff fee for moving the balance.”

If a balance transfer check lands in your mailbox, take care to check both the introductory APR and the regular APR, along with the terms of the promotion to see how long of an interest-free period you’ll enjoy.

When does a balance transfer check make sense?

Deciding when to get a balance transfer check means examining what the pros are for you specifically. Nadia Malik, personal finance expert and founder of Speaking of Cents, said there are three reasons to consider a balance transfer check:

  • You’re certain that you have enough time to pay the balance in full before the 0% APR period ends
  • You have the option of making the check out to yourself to get cash quickly
  • You want to transfer balances other than credit cards, such as a personal loan

“Balance transfer checks can help you in debt consolidation and paying off existing accounts with low or no interest, which is ideal if you’ve racked up a lot of debt,” Malik said.

When does a balance transfer check not make sense?

A balance transfer check may not be the best solution for consolidating debt if you don’t have a solid debt repayment strategy. King said one of the most important requirements for getting a balance transfer check is a commitment to paying off the balance on time.

“In many cases, you can save a ton of interest by taking advantage of 0% offers,” she said. “However, if you aren’t serious then you’re paying out additional fees that should be going toward your debt.”

In other words, you shouldn’t use a balance transfer check as a procrastination tool. It’s also entirely possible that a balance transfer check could make it easier to accrue more debt.

“The debt relief that’s offered by the transfer may lull people into a false sense of comfort that may tempt them to charge again,” Duffany said. “What’s needed is not always a new loan but a new way of relating to money.”

Even if that’s not an issue, you might want to pass up using a balance transfer check from a competing credit card company if the card you’re required to open lacks appeal beyond a 0% APR promotion. For example, if the card has a high annual fee it could end up costing you money, rather than saving it.

Remember that balance transfer check fees can increase the amount you owe, which is something to factor into your repayment plans.

As far as the balance transfer fee goes, there are some cards that offer no balance transfer fee promotions.

  • The Chase Slate card offers an introductory 0% APR for 15 months with a $0 introductory balance transfer fee for transfers made within the first 60 days. After the promo period ends, the card has a regular variable APR of 14.99% to 23.74%. Note that this card isn’t available online, though you may be able to apply at a Chase branch.
  • The Navy Federal Credit Union Platinum card offers an intro 0% APR for 12 months and a $0 balance transfer fee. Balance transfers must be made within the first 30 days to qualify and this promotion ends June 30, 2021. After the promotional period expires, a regular variable APR of 5.99% to 18% applies.

But some no-fee balance transfer fee offers may not extend to balance transfer checks, so it’s important to know what you’re paying up front.

How to get a balance transfer check

If you’d like to get a balance transfer check, you could wait for your credit card company to mail one to you. But the simplest way to get a balance transfer check may be calling up the credit card company and asking for one.

Keep in mind that some credit card companies don’t issue balance transfer checks. American Express and Capital One, for example, offer balance transfers exclusively online.

The list of credit card companies that offer balance transfer checks includes:

  • Chase
  • Bank of America
  • Barclaycard
  • Citi
  • U.S. Bank

Discover offers cash checks but these are treated as cash advances, not balance transfers.

That’s important to note since you’d be subject to a cash advance APR and a cash advance fee, with interest accruing on the balance right away, rather than balance transfer terms.

See related: How do credit card APRs work?

Balance transfer check alternatives

If you’re looking for ways to consolidate debt, there are other opportunities besides balance transfer checks. Malik recommended considering these options for combining debt at a low interest rate:

  • Home equity loan
  • Home equity line of credit
  • Unsecured personal loan
  • 401(k) loan

Each has its own pros and cons. With a home-equity loan, for example, the pro is a fixed interest rate while the con is that you’re effectively using your home as collateral for consolidating debt. A 401(k) loan means you’re borrowing money from yourself at low rates, but you could be shortchanging your retirement in the meantime.

With personal loans, you’re unlikely to get a 0% interest rate the way you would with a balance transfer check. But you may be able to lock in a low rate if you have a solid credit score. And personal loans can offer the benefit of fixed monthly payments, which can make budgeting for debt repayment easier.

Comparing all the avenues for managing debt can help you decide which one makes the most sense.

Bottom line

Balance transfer checks can offer convenience if you need or want to consolidate high interest credit card balances. When considering balance transfer offers, be sure to understand how much you might pay in fees or interest versus what you could save. Finally, check the fine print to ensure that what you’re using is in fact a balance transfer check, not a cash advance check, which has the potential to be much more costly.

*All information about the Chase Slate card and the Navy Federal Credit Union Platinum card has been collected independently by and has not been reviewed by the issuer. These cards are no longer available on our site.

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

What’s up next?

In Balance Transfers

A second credit card: When it’s wise to get one, when it’s not

Adding another credit card to your wallet can be an asset, but it’s not for everyone. Here’s everything you need to know.

See more stories
Credit Card Rate Report
Cash Back

Questions or comments?

Contact us

Editorial corrections policies

Learn more