Many lenders begin charging interest when the check posts to your account, even if they otherwise give you time to repay your credit card purchases interest-free. Since the convenience checks are really a cash advance loan, you may not be allowed an interest-free period to pay the loan without interest accruing. For example, if you wrote a check for $1,000 and the convenience check fee was five percent of that amount, you would pay $50 in addition to the interest charged. When using credit card convenience checks, you can also expect to incur a transaction fee usually as a percentage amount of each check. The interest rate on the convenience checks you receive are charged at the cash advance rate – often higher than the stated purchase rate. Actually, your credit card company generally puts spending into two categories: purchases and cash advances. You might think that the interest charged when spending on your credit card is all the same. Know the interest rate and the fees you will pay These checks generally have different fees or interest rates than other credit card purchases, so be sure you know the costs associated with this convenience before you make it a practice. These credit card checks offer a quick way to write yourself a loan (also known as a cash advance), pay bills, or transfer other loans and card balances to your credit card account. This check payment shows up as a charge on your credit card statement. Convenience checks are blank checks you might get in the mail from your credit card company that allow you to write a check for payment.
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