How Payments Work When Using a Convenience CheckĬredit card companies are in the business of making money. Just because a credit card check looks like a normal check, it's not. That could end up costing you far, far more than you initially made that check out for. Some lines of credit compound the interest rate on your cash advance daily. They're usually 1% to 10% higher.Īgain, depending on the terms of your card, that interest rate might compound at a different rate. Interest rates on cash advances are not the same as the regular interest rate on your credit card. Depending on the terms of your card, that could lead to high fees and even higher interest rates. Making a purchase or payment with a credit card check is like taking out a cash advance on your credit card. Instead, they're connected to an existing line of credit - your credit card. Unlike a normal check, credit card checks aren't tied to a cash bank account. Use with Caution: These Checks Aren’t Like Cash! The promotional period is usually six months to more than a year, depending on the strength of your credit. They might offer 0% interest on purchases or balance transfers for a promotional period.
You can use a credit card check to transfer the balance for a more favorable rate.Īnd credit card companies work hard to incentivize you to use the checks they send. Of let's say you have another high-interest credit card. The checks offer many purchasing options unavailable through traditional credit card use.įor example, you can write a check to yourself and deposit it like cash into your bank account.
You write the check to a business or entity that accepts that form of payment to transfer money. They're also known as "convenience checks" or "balance transfer checks". What Is a Credit Card Check?Ĭredit card checks are blank checks sent in the mail by credit card companies. But before you take advantage, know exactly what you sign up for when you write that check.
The check amount adds to your credit card balance and you may pay balance transfer fees and/or a different interest rate.Ĭredit card checks can be tempting. Quick answer: Checks written out through your credit card are considered balance transfers. You can even use them to make purchases up to a certain amount.Īnd they'll also give you a nice low introductory rate when you use them!Īre you asking, "what's the catch?" You're smart to wonder. You can use them to pay down other debt or transfer balances. Your credit card company may say these checks are an opportunity. Have you ever received blank checks from your credit card issuer? These periodically arrive in the mail, even if you don't request them.
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