Credit Card Quick

Credit Card Convenience Checks: What You Need To Know

Introduction

Some credit card companies relentlessly send some customers convenience checks. Their purpose is two-fold: the credit card company wants to provide their good customers with a convenient way to pay for purchases and get some cash and they also hope to make more money in fees by your having used these checks for a cash advance. While it may seem like a tempting convenience, some customers find the fact that the company is sending these checks an annoyance as well as a security risk. Fortunately, there are things you can do to stop this and to protect yourself. The good news is your security is really not facing tremendous risk, but still, however it is prudent to be careful.

Stop the Madness

If you absolutely do not plan to use these convenience checks and would prefer not to receive them, tell the credit card company. Call the customer service number on the back of your card and make sure they know that you want this to come to an end. You will still receive checks for up to 90 days, as there is a delay between your request and getting your name off the list of customers to send to, but at least you have taken the step to eventually bring this practice of sending checks to your doorstep to a halt.

Security

It can be alarming to know that your credit card company is sending blank checks that could sit in your mailbox for hours while you are out of the house. On the off chance that a thief is around, they might be thinking “Jackpot!” No worries. You generally will not be held liable for fraud on these convenience checks. Thieves will find out that their so-called jackpot really isn’t so. The credit card companies have verification processes in place such as calling the customer and matching signatures, as well as stores who won’t take a check from someone other then the rightful person and demand ID as well as often wanting to see the credit card that corresponds to the check.

The micro-printing on the checks makes it very difficult to duplicate them, therefore, counterfeits will easily be detected. Still, if you have lingering worries, put a stop to the sending of the checks and be sure to shred up the ones that continue to come until the company puts a complete stop to it.

Are Credit Card Convenience Checks all they’re Cracked up to be?

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.