The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.

Navigating credit card debt can be daunting, particularly when you're dealing with high interest rates. One strategy often employed to handle this burden more effectively is the use of balance transfer checks. In this guide, we will walk you through the ins and outs of balance transfer checks, their benefits, drawbacks and how they compare with balance transfer credit cards.

What Is a Balance Transfer Check?

A balance transfer check is issued by your credit card company, allowing you to shift debt from one account to another.

View these checks as a strategy for managing or reducing high-interest credit card debt rather than as a short-term loan. Using these checks, you pay off higher-interest debt with the lower interest rate of the new account. However, remember that the lower rate is usually a promotional offer and can increase after a specific time frame.

Pros and Cons of Balance Transfer Checks

Balance transfer checks offer a few advantages and disadvantages. We've broken down these points for easier comprehension:

Pros of Using Balance Transfer Checks

  • Interest Savings: By shifting your debt from a high-interest account to one with a promotional low or 0% interest rate, you stand to save significantly on the total amount paid over time.
  • Debt Consolidation: If juggling multiple credit card debts, a balance transfer check can consolidate these into a single payment, simplifying your financial management.
  • Faster Debt Repayment: A lower interest rate implies more of your payments will be allocated to the principal balance, potentially speeding up your debt repayment.

Cons of Using Balance Transfer Checks

  • Balance Transfer Fees: Some credit card companies impose a fee for balance transfers, usually a percentage of the transferred amount, which might offset some interest savings.
  • Temporary Low-Interest Rate: The low or 0% interest rate associated with balance transfer checks is promotional and time-bound. After this period, the interest rate could surge.
  • Potential for Increased Spending: Clearing your old card's balance can be tempting and might result in increased spending, which could lead to accruing more debt rather than paying it down.

Balance Transfer Checks vs. Balance Transfer Credit Cards

While balance transfer checks and balance transfer credit cards share the common objective of helping you manage high-interest debt, they differ in certain respects:

Balance Transfer Checks

  • Your credit card company issues them
  • They can pay off debt from any account, making them flexible
  • They typically involve a transfer fee
  • The promotional low-interest rate is time-bound

Balance Transfer Credit Cards

  • They are new credit cards opened specifically to consolidate and pay off existing credit card debt
  • The debt transfer takes place at the account opening
  • They also usually involve a transfer fee
  • They feature a promotional period with a low or 0% interest rate

MORE: Balance Transfer Pros and Cons and How to Decide

Remember that the choice between the two will depend on your financial situation and needs.

How to Use Balance Transfer Checks

When you're ready to take control of your finances and a balance transfer check fits your plan, you're all set to kickstart the process. Using a balance transfer check is simple and incredibly handy.


Evaluate and Write the Check

Identify the debt you want to pay off with the balance transfer check and write the amount you wish to transfer. This could be addressed to a credit card company, a loan provider or even yourself.


Activate the Check

Before sending it off or depositing it, call your credit card company to activate the balance transfer check. This step is crucial as it notifies your credit card company of your intention to use the check.


Review the Terms

Before finalizing, ensure you fully understand the terms of your balance transfer offer, including the fees, interest rates and promotional period. This will help you avoid any unexpected charges or rate changes.

Can I Write a Balance Transfer Check to Someone Else?

Yes, you can write a balance transfer check to someone else, but it's crucial to comprehend the risks involved. The amount you write becomes your debt on the new credit card. It's advisable only if you're confident about getting reimbursed promptly, which will allow you to pay off the newly acquired debt. Always weigh the risks and contemplate other options before proceeding.

Are Balance Transfer Checks the Same as Convenience Checks?

Credit card companies sometimes also send convenience checks to their cardholders. Note that a convenience check is different from a balance transfer check.

Writing and cashing a convenience check is considered a cash advance from your credit card. You're not just borrowing against your credit limit, as with a standard card purchase, but essentially withdrawing cash directly from your card issuer. Cash advances usually have very high interest rates, and they start accruing interest right away, leaving no grace period.

Next Steps

If you're mulling over using a balance transfer check, the following steps should involve deepening your understanding of balance transfers. Scrutinize the terms and conditions of your credit card offer with a focus on the fees, interest rates and duration of the promotional period.

FAQs About Balance Transfer Checks

You might still have some questions about balance transfer checks. We've compiled a list of frequently asked questions to guide you toward making the right decision.

About Grace Pilling

Grace Pilling headshot

Grace Pilling is passionate about empowering readers to make informed financial choices to support their best lives, not a company’s bottom line. Prior to joining MoneyGeek as a senior content manager, Grace was a senior editor at and Bankrate, where she focused on teaching people how to use credit cards wisely.

*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
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