Balance Transfer Checks: Use With Caution

Unlike most people who are getting their credit limits unduly shaved, mine actually went up for one of my credit cards.  Along with the news of my newfound credit line came several pieces of checks, which the issuer is sending along with an offer for a balance transfer deal.

According to the letter, I can use the checks to pay off balances on other credit cards and move the balance to my account with them using my newfound credit limit (which is about four times what my old credit limit was).  The offer is 0% fixed APR for one year with 3% balance transfer fees.

It’s a pretty typical balance transfer offer, which would be interesting if I actually carried high balances on other cards.  Of course, I don’t.  If I did, do you think they’d actually give me a 5-figure credit limit in this economic climate?

They knew I had very good credit record and I’m guessing they’re also clued in that I paid my balances monthly.  So why would they even offer me a balance transfer deal?  They really weren’t.  On the same letter, right below the fold, is where the real pitch is.  According to the issuer, I can “use these checks to…” basically pay for a zillion other things, from vacations to a car down payment.

If you receive the same communication from your credit card company, do note that this is the exact same thing that has left people in dire debt from credit card misuse.  With those checks and the 0% 12-month offer, spending money on things you don’t need does seem mighty tempting.  Use with caution or, better yet, put it through the shredder in case you don’t need a balance transfer right now.