Zero balance transfer credit cards offers are back. In recent months I have discussed the best way to use a balance transfer and I have given tips for using 0% credit cards for balance transfer responsibly to get out of debt. But there is another way you can use a 0% APR balance transfer to your advantage.
Although the best use for a 0% balance transfer is to pay an existing balance with a high annual percentage, you can also use the balance transfer for money as an emergency fund, earn interest on a savings account such as Capital Uni 360 or a money market account , or temporarily supplement your bank account. But to continue with these options, you must convert that APR offer to cash. How did this happen?
Below are three ways to convert a 0% credit transfer offer into actual cash that you can use.
1. Deposit “Access” Checks
The easiest way to convert a bank transfer into cash is to use the special checks that credit card companies send Emsworthijk with offers or with the monthly statement. These checks can easily be deposited into your checking or savings account. Although there are times when the bank temporarily places money on the funds, holding usually does not take longer than a few business days. I always first contact my credit card company to confirm whether the checks can be used for a deposit.
2. Transfer and refund
Another way to convert a balance transfer into cash is to request a balance transfer that is larger than the existing balance. For clarification, suppose you have a balance of $ 325 on credit card A, but you receive a 0% APR balance transfer offer from credit card B. You can then request a balance transfer of $ 6,250, which will give you a credit of $ 5,925 on your credit. Card A balance. You can then call the customer service representative on credit card A and request a refund. Sometimes the customer service representative gives you a bit of a difficult time, depending on the amount of the overpaid amounts; however, it is usually not a problem for them to pay the refund. I’ve found that Chase Bank is the easiest to work with when trying to get a refund, and Bank of America and Discover will sometimes even immediately refund your credit to your checking account.
It is important to prevent a balance from being transferred to a card that you have never used or have a balance of $ 0. In the early years it was possible to request a balance transfer to a card without a current balance. I once transferred $ 10k to a credit card with no balance and then requested (and received) the full refund of $ 10k. But recently, banks have learned this and if there is no existing balance, many will simply refuse to accept the balance transfer. Even a minimum balance of $ 5 can be the difference between a successful and unsuccessful balance transfer.
3. Transfer and spend
Instead of requesting a refund, many people simply spend the transfer amount too much. For example, if you transfer $ 4,000 from credit card A for an overpaid payment of $ 3,750 to credit card B, you can use credit card B without having to make a payment to that card until the balance is gone. However, be warned that this technique can be a slippery slope, because a credit card balance is extremely easy to spend, especially because it retains the allure of ‘free money’. But if you only spend the money that you would normally use in your monthly budget and long-term financial goals, you will slowly build up a surplus in your bank account. Keep in mind that it’s only twelve months free money – and even that only applies if you pay on time.