What Should You Know About A Convenience Check?

Nov 07, 2022 By Triston Martin

Lenders, often credit card companies or providers of home equity lines of credit, may sometimes give their clients essentially blank convenience checks. Borrowers may utilize these checks to clear off existing debt to fund new purchases or cash advances. However, they are not standard bank checks and are subject to different fees and conditions. The lender's structure and the borrower's purpose are typically the deciding factors in the terms. Before utilizing convenience checks for anything, borrowers should read the small print.

How Checks For Convenience Work

Convenience checks, according to their name, could appear quite handy. The money is there when you need it, but you should know that it is generally associated with a loan and must be repaid. Lenders, typically credit card issuers, provide many convenience checks as an alternative method for borrowers to access the credit they have granted to them. There are three basic reasons for conducting such audits:

  • To buy something when cash or a cheque is needed
  • The purpose of this balance transfer is to
  • To get a loaner's advance payment

The conditions related to these inspections might be extensive. As part of a promotion, the borrowed monies could accrue no interest for a certain period. In certain cases, an additional charge is attached to the usage of a convenience check. This extra cost is sometimes referred to as a cash advance charge. The specifics of the terms may differ based on the transaction's nature and the lender's agreement.

Customers may be offered convenience checks as nothing more than a part of a mail-in promotion. Customers may need to make a special request to the lender to have them in time for usage. If borrowers do not want to receive or use them, they may choose not to.

The Dangers Involved In Utilizing Convenience Checks

The major potential drawbacks of utilizing convenience checks are the potential costs and the time wasted on processing the complete transaction correctly. It's important to remember that each of the three primary transaction kinds might have its requirements and dangers. Utilizing balance transfers from a lender or credit card provider sometimes includes completing a convenience check. Borrowers often take advantage of balance transfers to pay off existing debt with newly issued credit and save money on interest. In this case, it may be relevant to consider the potential additional charges of utilizing the expediency check for both transfers.

Cash Advances And Purchases

It's common practice for credit card companies to charge a cash advance fee in addition to the usual purchase as well as balance transfer fees. You may be eligible for a grace period at no interest or a low cost when purchasing with a convenience check. As a result, a cardholder current on their payments will not typically incur interest charges on new purchases until the conclusion of the grace period. Convenient check cash advances could be subject to the same conditions. There will be a charge, but there may be no interest or grace period for a limited time. Borrowers should be aware of all fees and interest rates associated with just about any alternative credit transaction. However, the cash advance charge that usually comes along with using a convenience check might be rather high in certain situations.

Your Credit And Checks For Convenience

The use of convenience checks facilitates the impulsive expenditure of large sums of money. The more money you borrow, the worse your credit score might go. Maintaining a balance of less than 30 percent of your available credit is recommended. 4 Your "credit usage" should be under 30% of your available credit, or $300, if your card's maximum is $1,000. If you're approaching your credit limit, lenders and credit scoring algorithms may think you're in financial danger and be less likely to accept new loans for you.


Rather than using cash or a credit card, you may use a convenience check issued by your credit card provider. According to Bola Sokunbi, CFE, best-selling author and CEO of Clever Girl Finance, "you utilize it to pay out money related to your available credit limit." In contrast to a bank check, which uses the funds already in your account, this does not deduct the amount from your bank account. A convenience check is a cash advance that may be drawn on a credit card. However, "you can very much spend the money for whatever," adds Sokunbi, so there is some similarity. Payments for rent and other expenses like these cannot be made using a credit card. According to Gina McKague, CEO and founder of McKague Financial, "you can even utilize a convenience check as a means to pay a credit card using a credit card."

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