![]() ![]() In addition, there typically isn’t a grace period in which you can avoid accruing interest on the amount of the check. “The trouble with these convenience checks is that the banks often treat them like a cash advance, which makes them really expensive,” says Matt Schulz, chief credit analyst at LendingTree.Ĭash advances often come with a fee, on top of higher interest rates than other credit card transactions. When not to use a convenience checkĪs stated above, using a convenience check can be costly and should only be used as a last resort. It’s not the most prudent choice, but as long as you know what you’re getting into and have a quick repayment plan in place, a convenience check could tide you over. To pay a critical bill: Sometimes you have to rob Peter to pay Paul - meaning if, for example, you’re in a short-term cash crunch and need to pay your utility bill ahead of your next paycheck, you can borrow against your card’s credit line and use the convenience check. Just know it’s an expensive option, though sometimes life happens and quick cash is necessary. To access emergency cash: Writing the check out to yourself can put some fast cash into your pocket, much faster than if you applied for a personal loan. In this case, provided you have the check with you, you could write the check out to the repair service. To pay a vendor who doesn’t accept credit cards: Say you have an emergency car repair and the mechanic doesn’t accept cards. Still, despite the high cost, there may be times when a convenience check may be worth it, such as: LendingTree does not include all lenders, savings products, or loan options available in the marketplace. LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). See the respective Guide to Benefits for details, as terms and exclusions apply ![]() For Capital One products listed on this page, some of the benefits are provided by Visa® or Mastercard® and may vary by product.0% intro APR on purchases and balance transfers for 15 months 19.74%-29.74% variable APR after that 3% fee on the amounts transferred within the first 15 months.No rotating categories or sign-ups needed to earn cash rewards plus, cash back won't expire for the life of the account and there's no limit to how much you can earn.Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. ![]() Enjoy up to 6 months of complimentary Uber One membership statement credits through.$0 annual fee and no foreign transaction fees.Earn unlimited 1.5% cash back on every purchase, every day.Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.But that’s not the case with convenience checks - instead, interest will start accruing immediately. Grace period: When you use your credit card for purchases, you typically have a grace period of anywhere between 21 and 25 days in which to pay the balance before interest charges kick in. So if the fee is 3% and you use the check to borrow $1,000, you’ll be paying $30 for that service, in addition to the higher interest rate. If it’s not stated on your check or the promotional literature that came with your statement, go to your credit card’s website and click on its “Rates and Fees” link to find out what you’d be paying in interest charges.Ĭash advance fees: When you borrow against your credit card’s line of credit through a convenience check, you’ll most likely be assessed a fee, which is then added to what you borrow. What you don’t want to do, however, is confuse a convenience check with a balance transfer check, which can be used to pay off the balance on another credit card and often involves an introductory APR for a specified period of time.īefore you sign your name to a convenience check, educate yourself with the following terms:Ĭash advance APR: The interest rates on cash advances are typically much higher (often around 24%) than your credit card’s regular APR. You can make the check out to yourself and deposit it into your bank account, use the check to buy something or make it out to someone else to pay a bill or debt. What is a convenience check and how does it work?Ī credit card convenience check, sometimes referred to as an access check or purchase check, is a check offered by your credit card issuer that can be used to borrow money from your line of credit. Reduce the temptation by opting out of convenience checks.When it may make sense to use a convenience check.What is a convenience check and how does it work?. ![]()
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