How Do Credit Card Checks Work? | CreditShout

How Do Credit Card Checks Work?

By Kevin / December 3, 2010

THIS PAGE MAY CONTAIN AFFILIATE LINKS. MEANING WE RECEIVE COMMISSIONS FOR PURCHASES MADE THROUGH THOSE LINKS, AT NO COST TO YOU. PLEASE READ OUR DISCLOSURE FOR MORE INFO.

Credit Shout may collect a share of sales or other compensation from the links on this page.

Q: I’ve heard friends and co-workers talk about using credit card checks, but I don’t really understand them. How do they work?

A: Credit card checks work just like checks written on a regular bank account, except in the case of credit card checks, the amount of the check is actually added to your credit card balance. In other words, using credit card checks for purchases, transactions, cash advances (which themselves may have an additional fee), or whatever you are using them for is just like using the credit card itself, but you’re adding in an extra step because you have to write the checks out.

Some credit card companies offer credit card checks so that you can start charging to your account immediately, even before you receive your credit card. However, they probably won’t tell you that there are usually transaction fees for using credit card checks. These fees can be rather steep, and will be tacked on to the amount the check was written for, thus raising your overall balance.

You are better off just waiting until the card itself comes before you start putting charges on the account. There’s no need to pay additional fees when just having a little patience will prevent this.

If you receive credit card checks, you should immediately shred them. You don’t want them falling into the wrong hands and you being responsible for the charges that will result.

The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone. Additionally, the opinions of the commenters are not necessarily the opinions of this site

Leave a comment:


shares