No, you cannot do a balance transfer to a checking account from your credit card. A credit card balance is a debt that you owe. A checking account balance is an asset that you own. And a credit card balance transfer is when you use a credit card to pay off an existing debt, from another credit card or loan, in order to get a reduced interest rate. There is such a thing as a balance transfer check, but those are given out by credit card companies to perform balance transfers. They can’t be deposited into checking accounts. Typically, you can’t transfer money from a credit card to a checking account without doing a cash advance.
Tapping into your credit line to get cash and transferring the funds into a checking account is considered a cash advance. One example of this is writing a credit card convenience check to yourself and depositing it in your checking account.
If you make a cash advance, the transaction will incur a high fee (along with any ATM fees). Cash advances also accrue interest at a high rate – usually higher than the card’s regular APR – and have no grace period, so interest starts accruing right away. For more information, you can check out WalletHub’s guides on balance transfers and cash advances.
A balance transfer is a good idea if you have good or excellent credit and make an affordable payment plan prior to applying. You generally need good credit or better to get a 0% balance transfer credit card, though these introductory periods are temporary. Most balance transfer cards have very high regular APRs, making it important to repay what you owe before the 0% period ends.… read full answer
You’ll also want to make sure the new card’s balance transfer fee is as low as possible. The average fee is just under 3%. But, from time to time, there are credit cards that have both 0% APR on balance transfers and no balance transfer fee.
Balance transfer checks are checks that draw funds from a credit card’s credit line, rather than from a checking account. Credit card balance transfer checks can be used to pay part or all of the balance on another credit card or loan when the lender will not accept payment with a credit card directly. When you use a balance transfer check, the credit card’s standard balance transfer fee and balance transfer APRs usually apply.… read full answer
How long it takes to finalize the transfer depends on how long it takes the check to process. Plus, there are a few more things you should know about credit card transfer checks if you want to use them right.
Here’s how balance transfer checks work:
What they are: Checks that let you transfer a balance from a lender that won’t accept credit card payments.
How to get them: Credit card companies sometimes send balance transfer checks to cardholders in the mail. You may have to call to request them. In some cases, balance transfer checks may not be available. For example, Chase does not give them to new cardholders, and Amex does all balance transfers online.
Interest rates: Balance transfer checks are subject to a card’s standard interest rates. There may be a 0% introductory APR for balance transfers, after which the remaining balance accrues interest at the card’s regular APR.
Fees: Standard balance transfer fees, which can be as high as 3% to 5%, apply to balance transfer checks. There is no additional fee for using a balance transfer check in most cases.
Other types of credit card checks: Convenience checks allow purchases or cash advances using funds from your credit line. Expect a cash advance fee and expensive interest that starts accruing immediately.
The best credit cards for balance transfer checks are simply the best balance transfer credit cards overall from issuers that offer the checks. That’s because balance transfer checks use a card’s standard balance transfer rates and fees.
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