0% Balance Transfer Checks From Bank of America
Author: haz410
Posted: Fri Oct 20, 2006 6:49 am
Post subject: balance transfer question
HI, I was wondering because bank of america sent me some 0% blanace transfer checks. Is it possible to write these checks in your or maybe your spouse's name and depoist into bank account. I mean would they consider that a cash advance becasue on the offer they said "pay off a high interest credit card or use the money for a vacation"
The reason im asking, is if i can depoist to my account, i could invest the money seeing it would be 0% interest free and make money off the deal.
also if you can depoist it, are you only allowed up to your cash advance or you entire credit limit.
thanks for the help
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Author: Brammy
Posted: Fri Oct 20, 2006 7:33 am
Post subject:
I would call to clarify but I think the checks can be used in either manner. My company WaMu adv that I could deposit into an account. Never go all the way up to the limit. Usually there is also a BT Transfer limit but you will have to call to ask. Are they just 0% or no fee as well?
Author: maddybeagle
Posted: Fri Oct 20, 2006 8:02 am
Post subject: 0% Balance Transfer Checks From Bank of America
yes, you can drop them in your bank account and use your entire limit minus any bt fees...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: haz410
Posted: Sat Oct 21, 2006 12:01 pm
Post subject:
hmm thats weird.. if you think about it what good is a cash advance check then. because those are usally harder to get good offers with then balance transfer offers.
Author: Ira
Posted: Sat Oct 21, 2006 4:51 pm
Post subject:
Technically there is no such thing as a "balance transfer," although banks use it as a convenient term for a special class of credit card loan. You can write a balance transfer check to anyone including the devil himself if you so desire. I myself, as have dozens of folks on this board, have made some interesting money by doing exactly what you're contemplating - write a check to yourself for just under the credit limit for the card, deposit it into an interest bearing account, pay the minimum each month, and withdraw the remaining principal from your interest bearing account just in time to pay it off under the terms of the 0% offer.
The one caveat is that the card you're going to be using must have a zero balance when you start. If not you could lose big time due to the fact that payments are allocated first to that portion of your debt that has the lowest APR. That of course would be your BT balance. If there's anything left over it goes towards paying off higher rated debt. So if you start off with a balance of several thousand there's no benefit at all to the 0%.
Be careful out there!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Fri Oct 20, 2006 6:49 am
Post subject: balance transfer question
HI, I was wondering because bank of america sent me some 0% blanace transfer checks. Is it possible to write these checks in your or maybe your spouse's name and depoist into bank account. I mean would they consider that a cash advance becasue on the offer they said "pay off a high interest credit card or use the money for a vacation"
The reason im asking, is if i can depoist to my account, i could invest the money seeing it would be 0% interest free and make money off the deal.
also if you can depoist it, are you only allowed up to your cash advance or you entire credit limit.
thanks for the help
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Brammy
Posted: Fri Oct 20, 2006 7:33 am
Post subject:
I would call to clarify but I think the checks can be used in either manner. My company WaMu adv that I could deposit into an account. Never go all the way up to the limit. Usually there is also a BT Transfer limit but you will have to call to ask. Are they just 0% or no fee as well?
Author: maddybeagle
Posted: Fri Oct 20, 2006 8:02 am
Post subject: 0% Balance Transfer Checks From Bank of America
yes, you can drop them in your bank account and use your entire limit minus any bt fees...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: haz410
Posted: Sat Oct 21, 2006 12:01 pm
Post subject:
hmm thats weird.. if you think about it what good is a cash advance check then. because those are usally harder to get good offers with then balance transfer offers.
Author: Ira
Posted: Sat Oct 21, 2006 4:51 pm
Post subject:
Technically there is no such thing as a "balance transfer," although banks use it as a convenient term for a special class of credit card loan. You can write a balance transfer check to anyone including the devil himself if you so desire. I myself, as have dozens of folks on this board, have made some interesting money by doing exactly what you're contemplating - write a check to yourself for just under the credit limit for the card, deposit it into an interest bearing account, pay the minimum each month, and withdraw the remaining principal from your interest bearing account just in time to pay it off under the terms of the 0% offer.
The one caveat is that the card you're going to be using must have a zero balance when you start. If not you could lose big time due to the fact that payments are allocated first to that portion of your debt that has the lowest APR. That of course would be your BT balance. If there's anything left over it goes towards paying off higher rated debt. So if you start off with a balance of several thousand there's no benefit at all to the 0%.
Be careful out there!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 9:04 PM
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