Nov13
Credit Card Rewards
Most of us are aware of those credit card convenience checks often sent to us by our credit card company. Sometimes they come with special rates and incentives, and many are sent right along with our credit card bill.
The checks are blank and ready to use. Sounds tempting, doesn’t it? A new pair of shoes, a weekend getaway or even a new vehicle is just a check away.
But before you start spending with your credit card’s convenience checks, you may want to take a step back and consider the advantages – and disadvantages – of credit card convenience checks.
Advantages
- Writing out a convenience check is often much easier than applying for a personal or car loan.
- Ideal for situations where a credit card would not or could not be used, such as paying a contractor.
- Often times, they come with promotional rates that are much better than the current interest rate on your credit card.
- Convenience checks may be an ideal way to consolidate your debt.
- Convenience checks may be useful for paying off medical debt, student loan debt or any other type of consumer debt.
- Convenience checks may be deposited into your bank account for cash.
Disadvantages
- Promotional rates on convenience checks are often short-lived. If you receive a great promotional rate on a convenience check, chances are you will not be able to pay off the debt before the promotional period ends.
- Convenience checks often come with fees. These fees can equal a percentage of the check’s total, or can be a straight fee, depending on the creditor and the offer. Keep these fees in mind when writing convenience checks, as they may outweigh the benefits of the promotional rate.
- Convenience checks may give the consumer a false sense of security when it comes to being able to pay off the debt. In other words, the sheer convenience of convenience checks may cause consumers to overspend when they might not have otherwise overspent.
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Jul15
Credit Card Rewards
If your credit is great and you’ve earned a high credit limit and a low interest rate then you may consider using your credit card to make a large purchase. From a used car to a flat-screen television or backyard deck, your credit card may be your ideal source of credit for large purchases and home improvements.
Have you considered using your credit card to make home improvements; to take a family vacation; to purchase household appliances or furniture; or to purchase a computer? All of these types of purchases can be made using your low-interest credit card!
There are plenty of perks for using your credit card to make large purchases, including:
- No loan application – If you are looking to make a large purchase on credit you will need to deal with the hassle of a loan application; either for a car loan, a personal loan or another credit card. However, if you have an existing credit card with a high credit limit and a low interest rate, you can make your purchase and avoid the frustration of filling out a loan application.
- More competitive interest rates – Many personal loans, auto loans and retail credit cards charge shockingly high interest rates; whereas, your credit card will likely have a more competitive interest rate. Compare the interest rates for a personal loan, as well as your credit card, and you may be very surprised to see that your credit card may offer a much lower interest rate.
- Convenience checks – There is no better way to make a large purchase than to simply write out a check. Many credit card companies send convenience checks to their outstanding customers, along with special offers and promotions. For example, it is not uncommon to receive a special convenience check promotion with a low, fixed interest rate until the loan is paid off.
- Easy repayment terms – Your credit card will likely boast easy repayment terms which allow you to prepay without a penalty. Most credit cards have simple, straightforward terms and conditions, as well.
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