Convenience Checks – Approach with Caution
How do you like to get a blank check in the email for use at your disposal for whatever you would like? Well, if you are a credit cardholder, it is likely that you’ve already received such a check at the same time or another from your credit card company. That alluring slip of paper (or batch of slides of paper) you have likely gotten in the email is called a convenience check, and although it may be tempting to use it to pay off one of your bills, it’s important to understand that they are often not nearly as convenient as their name may suggest. In fact, the expression is misleading, as the use of convenience checks usually carries significant costs and hidden fees which make them far riskier than they’re rewarding.
A convenience check is an allegedly free, normally unsolicited check sent to cardholders, often attached with a letter in the card issuer saying that the check may be used to”repay other debts” or”consolidate your outstanding credit card accounts.” The check functions as a kind of cash advance on your credit card, letting you borrow money directly from the credit 소액결제 현금화. These days, cardholders get these checks within fourteen days of launching an account, and they’re also common to see at mailboxes near holiday shopping seasons. Even though they may seem to be ordinary, dependable checks that can help out when money is tight, but the simple truth is that using these checks will probably further complicate one’s financial problems rather than help them.
Probably the very decidedly inconvenient characteristic of a convenience check is the lack of a grace period for cash advances on a credit card, meaning the check starts to accrue interest on the balance immediately from the time it is drawn. It also doesn’t help that they qualify for the maximum interest rate applied to cash advances, which makes them a great deal more expensive to use than somebody may initially think. Rates of interest can hover around 20% or more. On top of this, many issuers charge exorbitant fees simply to issue the check; these fees can often vary from 2% to 5 percent of the entire check amount. It is also not uncommon for agreements to stipulate that cardholders must be responsible for the total amount of the check, unlike the $50 liability limit on a stolen or unlawful use of a credit card. Whereas with a credit card, stolen or damaged items may often be substituted, convenience checks offer small to none of the identical buy protection.
Very little that entails using convenience checks is especially convenient, as the issuer will often review a cardholder’s credit history as soon as he or she attempts to use a check. In case the business determines that the cardholder is using too much credit for buys, it may decline authorization to use the convenience check, putting the consumer in a difficult financial situation. Consumers’ credit card bills are also often attached with convenience checks in the mail, which makes them easy targets for thieves. If the issuer accepts the consumer’s use of the check and the check will not get stolen from the unlocked mailbox, then you will only have the above interest and fees to be worried about. Needless to say, you need to attempt to avoid using convenience checks altogether. If you are in need of quick cash, it’s significantly less risky to contemplate taking out a payday advance.