Find out if convenience checks can crash your credit - AmericaNowNews.com

Finance

Find out if convenience checks can crash your credit

  • FinanceFind out if convenience checks can crash your creditMore>>

  • Finance

    Why you should regularly check your credit report

    Why you should regularly check your credit report

    Have you ever heard of an "honest" thief? If there is such a person, he got about $50,000 using somebody else's information. But, the twist here -- the perpetrator is making payments.
    Have you ever heard of an "honest" thief? If there is such a person, he got about $50,000 using somebody else's information. But, the twist here -- the perpetrator is making payments.
  • Consumer

    Overpayment check scam

    Overpayment check scam

    Cammie Brown was trying to make a little extra money so she decided to sell Avon on the side as an Independent Sales Rep. Less than two months in, she was targeted by scammers.
    Cammie Brown was trying to make a little extra money so she decided to sell Avon on the side as an Independent Sales Rep. Less than two months in, she was targeted by scammers.

Convenience checks -- those checks that come with your credit card or card statement -- you know if you cash one of those, it's a charge to your credit card, right?

What you may not know is there are other charges when you cash a convenience check. Big charges.

Bill Hardekopf, CEO of LowCards.com, said expect these extra charges when cashing a credit card convenience check:

* CONVENIENCE FEE. Hardekopf said this fee's typically as much as three or four percent of the check amount.

* INTEREST RATE. A convenience check's interest rate is not your card's purchase APR. It's your card's APR for cash advances. That's usually more than 20 percent!

* NO POINTS, REWARDS OR PURCHASE PROTECTIONS. Your card may be a rewards card, but the convenience checks are not rewards checks. Any purchases made with them will not earn points or rewards.

Hardekopf added if you exceed your card's credit limit with a convenience check, it will bounce like any other check. You will be held responsible for passing a bad check.

The best way to pass a credit card's convenience checks is right into the shredder. Destroy them and ask your card-issuer to stop sending them.

Copyright 2013 America Now. All rights reserved.

Powered by WorldNow