Comments on: No-Nos #113: Convenience/Cash Advance Checks

By: Cap

Cap — Fri, 04 Mar 2011 19:21:23 +0000

Although the post is a bit dated, just a note that convenience/balance transfer checks will still have a “minimum” fee charged to it but the language may be a bit different. The rates are a bit lower these days but its still something to be aware of, especially for 0% balance transfer checks.

Here’s an example from a current Discover card offer:

Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater

So even if you do a cash advance of say.. $100, your fee is $10 (10%) instead of the original $5 (5%).

By: Jones

Jones — Fri, 04 Mar 2011 16:21:18 +0000

This is outdated information. Current convenience checks can have a 3-5% charge just for using it but I’ve never seen a minimum amount charged-just the basic % fee. Also. you can request that your bank or credit card stop sending you the checks. Since it can take MANY weeks to process the stoppage make sure to cancel them, and be sure to monitor whether or not the stoppage worked, at least 90 days before you move.

By: Dan Byrne

Dan Byrne — Sun, 03 Sep 2006 20:25:51 +0000

I’ve used “convenience” checks for years. If you watch
yourself they, like credit cards, can be great tools. If you are foolish they are shovels digging your hole deeper. I owe about $27k in convenience checks, it is sitting in a money market collecting 5.15%. They lent it to me at 0%, no fees, I lent it right back to them at 5.15%, also no fees. Seems like a winner to me. I always cut up the card for that account so I can’t make a mistake and charge something.

By: Liz S.

Liz S. — Mon, 28 Aug 2006 00:37:15 +0000

The credit card companies term their checks “convenience” checks, but they intend them for balance transfers or big purchases you simply can’t resist. I wrote the check out to myself. I’ve talked to a couple of credit card companies about this and it’s interesting. Sometimes the difference is in writing the check out for “cash” vs. a name. If I wrote it out for cash, I’d get hit with the outrageous rate you speak of. They told me to write it out to myself and I’d be fine and I was.

By: mapgirl

mapgirl — Sun, 27 Aug 2006 15:55:12 +0000

Shredder. I take mine to work and toss them in the giant cross cut shredder. It’s very satisfying to watch them shred into tiny bits.

By: Pau

Pau — Fri, 25 Aug 2006 17:10:22 +0000

Here’s an easy way to stop the madness:

1. Call your credit card company (I have Chase, too).
2. Tell them to add you to their do not solicit list.
3. Tell them to not mail any more convience checks.
4. Sign up for on-line account management.

You won’t receive any more checks. The idea that there are checks sitting in my mailbox that would be worth $10,000 to anyone strolling by is just ridiculous. So tell them to stop sending them, and they will.

By: Cap

Cap — Fri, 25 Aug 2006 12:25:36 +0000

ah I think I confuse things a bit w/ the term convenience check. what I meant specifically are cash advance convenience checks, these checks are drawn from your cash line in the credit card. they are a clear difference from balance transfer check.

the cash line of the credit card is a line of credit within your credit limit, and it’s usually of a lower amount than your total credit limit. utilizing the cash line is very expensive. doing things such as using cash advance convenience check, withdrawing cash from ATM via your credit card will tap into that cash line.. which is a different type of transaction than purchases and balance transfer.

Alisa’s 0% for 12 months is definitely a balance transfer check, though some creditors do term it convenience check.

I couldn’t tell from your post Liz, but what you used was most likely a balance transfer check too. I highly doubt it’s a cash advance convenience check, since they’re hardly fixed rate, especially for the life of balance. That’s a trait of balance transfer checks.

Anyway my fault for not clearing it up in the post, thanks for leaving the comments because now I realize I should amend the post a bit!

By: Alisa

Alisa — Fri, 25 Aug 2006 08:55:04 +0000

I use convenience check when it is 0% apr for 12 months!! It’s like borrow money for FREE!! yeah that’s the only time I use it but I agree with what you said. It is like the highway robbery!

By: Liz S.

Liz S. — Fri, 25 Aug 2006 01:15:58 +0000

Maybe I live on the wild side or something but I’ve used convenience checks for a great many things, always with good luck. It’s not for everyone, but if you’re anal retentive, like me, you can make it work.

My most recent convenience check was for my car. http://www.moneystuffed.com/2006/07/car-financing-with-credit-card/