Credit card kiting

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Credit card kiting is a made up phrase with no legal meaning. While some confuse the practice of borrowing money via a credit card with writing a check without sufficient funds, it is clear that borrowing money is not like writing a bad check.


Introductory rates[edit]

Many credit cards offer introductory rates, which in some cases, could be as low as 0% to which balances from other cards can be transferred. There is nothing illegal about transferring a credit card balance as it merely substitutes a loan from one lender for a loan from another lender, similar to when a house is refinanced.

Cash advances[edit]

Cash advances can be obtained from most credit cards, which can be used to pay off balances or pay off a home loan. Though there can be fees and higher interest rates for obtaining these loans, if a card has a high credit limit or no limit at all, this in theory could be used to pay off the previous balance while creating a larger balance. In this case, the borrower is paying off all or part balance due by borrowing an additional amount from the bank. There are many other sources of loans that people use to pay off other loans and doing so is not unlawful.