You Can’t Balance Transfer Within the Same Bank

A lot of consumers seemed to get tripped up when inquiring about credit card balance transfers.

As I’ve said before, credit card issuers don’t do a great job explaining how they work. Instead, they simply bombard you with offers in your mailbox, inbox, and anywhere else.

So let’s set the record straight. You cannot execute a balance transfer within the same bank.

Let’s look at an example shall we:

Citi credit card balance: $2,000
Citi credit card APR: 19.99%
Citi balance transfer offer: 0% APR for 21 months
Balance transfer fee: 3%

So you’ve racked up some credit card debt with Citi to the tune of $2,000. Knowing that you’re paying some serious credit card finance charges, you look into available balance transfer offers.

It’s not long before you discover that Citi has the longest 0% balance transfer offer, at a staggering 21 months.

Unfortunately, if you look at the fine print, you should notice that you cannot transfer your existing Citi credit card balance using a Citi balance transfer offer.

Sure, they may give you a balance transfer check, which after being deposited into your checking account, could be used for just about anything, including paying off your Citi balance.

But that’s not very kosher, nor should you rely on that being a possibility as not all banks offer balance transfer checks.

Instead, you’ll need to consider balance transfer offers from other leading credit card issuers, such as Capital One, Chase, and Discover, to name a few.

Why Not?

You may be wondering why you can’t execute a balance transfer within the same bank.

It’s simple really; why would a bank allow you to shuffle debt within their own bank to a lower interest rate?

Banks only extend 0% balance transfer offers to take on your debt in the hopes of making interest off you and gaining you as a customer.

If they already have you as a customer and are making money off you, why would they want to change that in any way?

The short answer is they wouldn’t, which is why you don’t see banks offering to move debt within their own institution.

Fortunately, there are plenty of banks out there that offer balance transfers, so you should be able to find a suitable alternative, even if you had your eye on an offer from your current bank.

Just know that this is one of the many balance transfer pitfalls, especially if you’ve burned through a number of banks already while playing the balance transfer arbitrage game.

Tip: Does a balance transfer hurt your credit score?