Credit Card Convenience Checks
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Cardholder Benefits » Credit Card Convenience Checks

Credit Card Convenience Checks

By
Add to Favorites:
Credit Card Convenience Checks
May
2

Convenience checks tied to a person's credit card account are not somewhy that widely discussed as fees, rates, rewards and various tips of a smart card use. Meanwhile convenience checks are nothing more than just a hidden form of hefty charges imposed on a cardholder straight after cashing it.

So, when next time you receive a mail and find a convenience check with a good amount of money on it, remember about three key factors that can turn your desire of using the easy money into a big headache.

If you have ever taken out a credit card cash advance, the idea of a convenience check is getting clearer for you. Convenience check looks like an ordinary check and contains a certain dollar amount that will be withdrawn from your account once you decide to cash it.

A convenience check that may be filled up with such enticing and provocative sums as $300, $500 and even $1,000 may be a driving force for impulsive shoppers to go on a spending fee, but don't let it take you into deep trouble.

Stop and think of the following traps that a convenience check has prepared for a credit cardholder addicted to spending and strapped for cash.

Convenience can be pricy. A credit cad convenience check allows you to make a big purchase or use it as a balance transfer but you will have to fork out for the privilege. Do not imagine that you can spend this "instant money" and avoid paying charges on it.

You begin accumulating credit card interest rates of up to 20% as soon as you cash the check. The interest is usually accompanied with a flat fee of 2% to 5% of the check amount.

You won't find any information on the interest charges right in the credit card statement. To know the exact figures you will have to dig into the fine print of the credit cardholder agreement or contact the card provider.

Also, beware of the provider's policy of allocating your monthly bill payments. The general policy to use the payment to cover lower interest balances in the first place may keep you accumulating finance charges on the convenience check balance for quite a long time.

Convenience is not protected. Remember a purchase protection plan available on almost any credit card account? When the merchandise bought with a plastic appears faulty, you can request the company to return you your money and remove the purchase from your statement.

It is impossible to fix up with a convenience check. In this case the check operates like your own cash irrevocably gone to the merchant.

High cost and low protection would already be enough to stop a smart cardholder from cashing the check, but there is one more thing.

Convenience provokes crime. Crooks are on their lookout when it comes to a cardholder using a convenience check. Being freely sent by mail and requiring no signature verification, the check can be picked up and used for cashing, going shopping or opening a new credit card account.

Credit card fraud is very often associated with and a frequent result of convenience check using.

Cost. No protection. Fraud. Think no less than 3 times before you cash the alluring dollar amount on the insidious convenience check!

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading