How do credit card balance transfer checks work?

How do balance transfer checks work?

While credit card checks tend to look the same, they can come with very different offers. For example, certain credit card checks you get in the mail come in the form of a true balance transfer offer. When that's the case, writing yourself one of these checks means scoring 0% APR on those funds for anywhere from 12 to 21 months.

However, if you read all the details, you might find a nasty surprise. Where some balance transfers may be fee-free, others charge a balance transfer fee of up to 5% of your transferred balance upfront. If you write yourself a check for $5,000, for example, you'll owe up to an additional $250 on top of the money you borrowed.

In certain cases, the checks you'll receive in the mail don't come with a 0% APR offer at all. They may be disguised as helpful balance transfers or convenience checks, but they may actually just represent a cash advance. 

If you read the fine print on the offer, you may find you're required to pay a cash advance fee of up to 5% to use your checks, and then pay a higher interest rate to boot. Worse, credit card checks meant for a cash advance don't offer a grace period at all. If that's the case, interest will begin accruing on your balance the moment you deposit the check in your account.