Credit Cards FAQ
I have been offered convenience checks from my credit card company. What are they?
For greater convenience some credit card companies offer free convenience checks. The credit card companies will tell you that you can use these checks just like real checks to make purchases, pay utility bills or get cash at a teller window. However, unlike your personal checks, you actually borrow funds every time you write convenience checks.
Additionally, as some credit card companies see convenience check transactions as cash advances, you can incur finance charges and high interest rates. Just because the checks themselves are free doesn’t mean that there isn’t some kind of hidden cost to using them. As is true with most credit card features it is probably a good idea to read the fine print of your credit card holder’s agreement before you use a convenience check.