Check Cashing vs. Credit Cards
Credit cards in America are just as common, if not more common, than traditional banks and checking accounts. And it's not surprising—almost everything in our economy revolves around credit. But just because credit cards are the most commonly used form of payment doesn't mean that they are the smartest way to pay.
Chances are, you've heard some of the horror stories behind credit cards. Luckily, there are other options for managing your money. Check cashing is one of those options, and one of the most conveniently available credit card alternatives. Let's take a look at the different ways that check cashing could be more beneficial to you than a credit card.
Safer Bill Payment
If the bank is closed and a bill is due, is it safer to use your credit card, or head to the nearest check-cashing provider to pay it off? Your first instinct might be to pull out the plastic, but your financial situation will be safer if you reconsider check cashing. You'll also save money in the long run by avoiding hefty interest payments.
Most financial service centers offer more than just check cashing. They can also offer pre-paid debit cards, money orders, and bill payment. In one trip, you can cash your payroll or personal check, and then receive your cash in hand instantly. You can have that money loaded onto a pre-paid debit card for online use, just like a credit card. You can fill out a money order designated for a specific bill. Or, you can pay that same bill right there in the store. By the time you leave, your financial obligations can be taken care of, and there won't be any surprises later down the road. In fact, the only expenses to you are the flat fees connected to check cashing and other services. One upfront fee—end of story.
On the other hand, if you were to use your credit card to pay that bill, you would still have to pay it back with interest later down the road. And sometimes, when life gets busy or emergencies arise, we can forget that we need to be setting funds aside to pay off that credit card balance. Depending on the size of your balance and how much you can afford to pay off every month, you could be paying off that bill for years to come. Choosing check cashing for bill payment means taking care of your bills in one convenient trip, and keeping credit card interest charges and monthly fees in your pocket.
Hassle-Free Fast Cash
If you need cash quickly, you could consider using a credit card cash advance. It might sound similar to the payday loan services offered at financial service centers, but a credit card cash advance can be far more dangerous and costly to you. By choosing check cashing instead, you'll get the cash you need while avoiding a potentially tricky financial situation.
When you receive a credit card cash advance, you'll be charged much more than your usual credit card interest rate, with no grace period. Meaning that as soon as the ATM puts the cash in your hand, your line of credit begins accruing high interest, up to 20% or more. Then, when it comes time to pay back your credit card cash advance, the company will usually insist that you pay back any remaining balance on your card first before applying any payments to your outstanding advance. That means while you're paying off your outstanding credit card balance, your cash advance is still gathering high amounts of interest, adding to your amount owed, and making the situation more and more frustrating.
With check cashing, you can have cash in your hand with just a one-time service fee. You don't have to worry about future payments, and there's no interest involved. It's your check—it's your money—get cash when you need to, with no extra strings.
Want to know more about how Check ‘n Go check cashing can help you? We're happy to fill you in. Check out our Check Cashing vs. a Loan from a Friend or Family Member page to find out more.