You might also use a check if you find yourself in a financial emergency while traveling, such as needing to purchase something from a merchant who doesn’t accept credit or debit cards. Why Use a Convenience Check at All?Ĭonsumers can use the checks for things like transferring a balance if you have an existing balance on another card you might sign a check to pay that balance off, effectively transferring it to a card with a lower interest rate to save money. If the check you write pushes you over your credit limit then you can get into even more trouble, because you’ll be assessed more fees and a higher interest rate called a penalty APR. What you might not know, however, is that credit card convenience checks can make your available credit disappear very quickly, leaving you with extra fees and a sky-high interest rate. It all sounds pretty convenient – hence the name. For some banks, any use of a credit card convenience check constitutes a cash advance. If you write it to yourself and cash it, it is considered a cash advance. If you write it to a merchant, the credit card company usually counts it as a charge on your credit card. Instead of swiping your card, you write a check against your credit account. What exactly are they? What are they used for? And should you use them? What is a Convenience Check?Ī convenience check is just that – a check that’s drawn on your credit card account. They look a lot like a regular check and have all the same elements, but they’re nothing like the checks you get for your bank account. If you have a credit card – and chances are, if you’re an adult in the United States, you do – you’ve probably been sent blank checks for your card.
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