Convenience check for earnest money deposit

[YellowFever]

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[qwerty]

Isn't there normally a 2-4% transaction fee?

 

[YellowFever]

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[cheetos]

They'll get you if you use the credit card for purchases. They apply any payments to the minimum interest which in this case would be the check. So then you end up carrying a balance on your 20% interest credit card until the convenience check balance is paid off.

 

[momopi]

Has anyone written out an earnest money deposit check using a convenience check from credit card?
Citicard sends me convenience checks every damn week and with a 0% apr for 1 year, I'm tempted to use them for earnest money deposit. 

I'd suggest shredding them and calling your CC company to ask them to stop mailing them to you.

 

[BruinDoc]

Has anyone written out an earnest money deposit check using a convenience check from credit card?

Citicard sends me convenience checks every damn week and with a 0% apr for 1 year, I'm tempted to use them for earnest money deposit.

This will increase your utilization ratio for your credit card(s) and will likely cause your FICO score to decrease.  This is the last thing you want to happen if you're going to be getting a mortgage on a home purchase.  I'd use good old-fashioned 'seasoned' funds from your own checking/savings account for this. Once you have closed escrow and your loan is funded, if you need more liquidity then go ahead and deposit the check into your savings/checking account. At that point your mortgage is already funded and you can max out your credit cards if you need to...not that it's a great idea but it won't affect your ability to qualify for a mortgage or increase your interest rate due to increased risk profile.

 

[usctrojancpa]

The lender definitely won't like that because they'll ask you to source the deposit.

 

[woodburyowner]

Isn't there normally a 2-4% transaction fee?

The one I got says no fees, 0% for 12 months.  The transaction fee is only for balance transfer.  But if you write the check to yourself... I think it's free?  

Edit: Correction, I think if you write the check out to a business, it's free. But if you write the check out to yourself, it's considered a cash advance. 

It's confusing.  Internet forums said if you write the check out as "Cash", then cash it yourself, then you can avoid the fees. 

You will pay a transaction fee guaranteed.  I used to play this game about 10 years ago when they would waive the transaction fees and give it to you at 0% for x amount of time.  I was able to extract 200k and earn 5% interest during that time.  Those were the days!

 

[capboba]

Isn't there normally a 2-4% transaction fee?

The one I got says no fees, 0% for 12 months.  The transaction fee is only for balance transfer.  But if you write the check to yourself... I think it's free?  

Edit: Correction, I think if you write the check out to a business, it's free. But if you write the check out to yourself, it's considered a cash advance. 

It's confusing.  Internet forums said if you write the check out as "Cash", then cash it yourself, then you can avoid the fees. 

You will pay a transaction fee guaranteed.  I used to play this game about 10 years ago when they would waive the transaction fees and give it to you at 0% for x amount of time.  I was able to extract 200k and earn 5% interest during that time.  Those were the days!

It really depends on the term of the check/balance transfer offer. Should be in small prints there. For example, Chase will happily let you write a balance transfer check to yourself and it'll be balance transfer transaction (not a cash advance)

And as for balance transfer fee, a few credit cards and people with targeted offers DO get transaction fee waived. One public offer is the Chase Slate which waives your transaction fee for initial balance transfer within 60 (?) days - thats for a 15 month 0% balance transfer.

I believe other cards have terms up to like 22-25 months or something ridiculous.

Anyways if you really want to do this for earnest money deposit, you should do it 2-3 months ahead of time to season the money. then they wouldn't care where it was from.

 

[woodburyowner]

And as for balance transfer fee, a few credit cards and people with targeted offers DO get transaction fee waived. One public offer is the Chase Slate which waives your transaction fee for initial balance transfer within 60 (?) days - thats for a 15 month 0% balance transfer.

I believe other cards have terms up to like 22-25 months or something ridiculous.

Wow, you're right!  First time I've seen an offer without a transaction fee in many years.  It's definitely a good product for those who truly need a 0% BT.