Why Use Check Cashing?
In reality, many people use check cashing because typical banks don’t work for everyone. According to a recent Brookings Institute study, while the number of households without a checking account has actually gone down, about 12 million American households still don’t have one. This means that millions of people rely on check cashing to manage their finances.
However, check cashing isn’t just an option limited to those without checking accounts. Many people who decide to use check cashing services have a standard checking account through a bank or credit union.
But, if they are already using a standard bank, why do people have their checks cashed elsewhere?
While there are many reasons why people, even those with checking accounts, choose to use check cashing, one of the largest reasons is convenience. A financial service center offering check cashing is more often open earlier and much later than a bank, some 24 hours a day. These check cashing providers typically don’t take designated ‘bank’ holidays. This means check cashing fits into a busy, demanding lifestyle. Check cashing providers never hold checks or restrict the amount that can be cashed at one time. Once a customer pays a clear, upfront fee, the cash is in hand.
Another convenience of a financial service center is the number of services offered. Check cashing may only be the first step in all the things you can do when you’re there. Customers often cash paychecks, then go on to pay bills electronically, and add funds to a prepaid debit card for later use.
Furthermore, check cashing is clear and transparent about its fees. Hidden fees and overdraft charges can add up and quickly become a problem for those trying to properly manage a budget. With check cashing, you know exactly what you’ll be charged, and it’s only a one-time fee. After that, the cash is yours with no extra fees and no hidden charges. With check cashing, you’ll know exactly what to expect.
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