If you have an active credit card account, you might receive unsolicited credit card convenience checks. A credit card convenience check lets you draw a portion of funds from your available credit limit without swiping your card.
Although convenience checks offer the benefit of using your credit toward other bills — either as a cash advance or a check-based payment for a purchase — they also come with their fair share of factors to consider. Keep reading to learn more about what a convenience check is and how to get one from a credit card.
Table of Contents
- What Is a Credit Card Convenience Check?
- Pros of Credit Card Convenience Checks
- Cons of Credit Card Convenience Checks
- Factors to Consider Before Getting a Credit Card Convenience Check
- How to Get Convenience Checks From a Credit Card
- Using Credit Card Convenience Checks
- How Credit Card Convenience Checks Can Affect Your Credit Score
- Alternatives to Credit Card Convenience Checks
- FAQ
Key Points
• Credit card convenience checks allow funds to be drawn from available credit limits without using a credit card.
• Convenience checks enable individuals to make purchases when credit cards aren’t accepted, pay off other debts, and provide quick access to cash.
• Cash advance fees apply when funds are drawn using credit card convenience checks, typically either a $10 minimum or 3% to 5% of check amounts, whichever is greater.
• Interest accrues immediately at cash advance APR rates, which typically exceed the annual percentage rates charged for standard credit card purchase transactions.
• If convenience checks are used to borrow large amounts from a credit card account, it could increase the credit utilization ratio, which might, over time, negatively impact credit scores.
What Is a Credit Card Convenience Check?
Also known as cash advance checks, access checks, or balance transfer checks, credit card convenience checks let you borrow money against your credit card limit.
Card issuers offer this option as a way to encourage spending on your credit card account. You can use these checks to pay bills, borrow money, make a balance transfer, or transfer loans to your credit card.
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Pros of Credit Card Convenience Checks
Convenience checks have certain benefits, including:
• They let you make purchases when using a credit card isn’t accepted.
• You can use one to pay off other debt.
• You can access cash quickly with a convenience check.
• A convenience check borrows against your existing credit line, so you don’t need to undergo a credit check for a new line of credit.
Cons of Credit Card Convenience Checks
There are also a number of drawbacks of convenience checks to be aware of before using one. These include:
• You’ll incur an additional fee each time you use a convenience check.
• Using a convenience check might activate a higher credit card APR for the check amount.
• You don’t get a grace period, so you’ll start incurring interest immediately.
• You’ll have fewer protections if your purchase is defective and you need to withhold payment.
• Your check purchase might not qualify as an eligible purchase under the card’s rewards program.
Factors to Consider Before Getting a Credit Card Convenience Check
Since convenience checks are treated like a cash advance by your credit card issuer, you’ll incur cash advance fees when the funds are drawn from your account. For example, your card issuer or bank might charge a minimum fee of $10 or 3% to 5% of the check amount, whichever is greater. Also, if you exceed your available limit and don’t have sufficient funds in your credit card account, you might be charged another fee.
On top of these extra fees, the interest on the check amount accrues immediately at your cash advance APR. Cash advance interest rates are typically higher than the APR charged for swiping your card for purchases at places that accept credit card payments.
If your account is a rewards credit card, purchases or draws using a convenience check are often ineligible for earning rewards. So not only are you paying more money to use the check, you’re losing the benefits of your rewards credit card program.
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How to Get Convenience Checks From a Credit Card
You’ll often get convenience checks in the mail. If you have an existing credit card account, your card issuer might include the checks in your monthly statement. A card issuer might also mail you a promotional offer with convenience checks inside to encourage you to apply for a credit card.
If you have an existing credit card account but haven’t received convenience checks in the mail, you can request them directly. Contact the phone number printed on the back of your credit card, log onto the credit card issuer’s website, or check its app to reach a customer service agent. Make sure to ask about fees you might incur by requesting printed convenience checks, as different types of credit cards carry different fees.
Using Credit Card Convenience Checks
There are many ways to use a convenience check, including:
• Using it as a cash advance. In this case, you’d write a convenience check to yourself and cash it to access physical currency.
• Using it to pay off other debts. This could include a loan or other credit card balance. In this scenario, the convenience check acts like a balance transfer vehicle that pays off a third-party credit account. You’ll then repay that balance, plus fees and interest, through your card issuer that provided the checks.
• Using the checks to pay for goods and services directly. This might come up if you’re dealing with a merchant or vendor that doesn’t accept credit card payments but accepts checks.
If you decide to use a convenience check, it’s more like a physical check from your personal checking account as opposed to how credit cards work. A convenience check has the same familiar fields as a personal check, including a place to write in the date, payee name, amount, optional memo, and your signature.
How Credit Card Convenience Checks Can Affect Your Credit Score
A convenience check borrows money against your existing credit card line, so your credit isn’t verified when using a check. Since convenience checks let you access your credit line through another method other than swiping or tapping your card, they can encourage you to borrow more from your account.
If you borrow large amounts from your credit card account, it can increase your credit utilization ratio. Keeping a high credit utilization ratio could negatively impact your credit score. However, if you repay your balance responsibly and are mindful of your utilization — both key credit card rules to follow — convenience checks may have minimal impact on your credit.
Alternatives to Credit Card Convenience Checks
Although convenience checks are a viable option when you need cash, there are other lower-cost options.
Personal Loans
Borrowing a personal loan gives you access to cash at what is probably a lower, fixed APR compared to the variable cash advance APR from your credit card. However, you’ll need to undergo a credit check and have strong credit for the most competitive rates.
Earning Extra Income
If time is on your side, increasing your cash flow can help you avoid high interest charges and fees for your next large purchase. Consider selling items that are taking up space in your garage, picking up extra shifts at work, or perhaps starting a side gig, like tutoring, for some additional income.
The Takeaway
A convenience check can be a fast way to access cash or make a purchase when a credit card isn’t accepted. However, the disadvantages of using convenience checks, like costly fees, increased APR, and no grace period, often negate the perks.
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FAQ
Is a convenience check linked to your account?
Yes, convenience checks from credit card companies are tied to an existing credit card account you have with that card issuer. The amount that you write on a convenience check will directly be added to your credit card balance, plus potentially fees and higher interest charges.
Can I write a convenience check to someone else?
Yes, you can write a convenience check out to another person or business as a method of direct payment. For example, you can use a convenience check to pay for a utility bill or for rent to your landlord. However, keep in mind that this will mean you’ll pay more toward that purchase because of fees and a higher APR.
Where can I cash a convenience check?
You can cash a convenience check anywhere you would cash a personal check. Your personal banking institution can cash the check for you, or you can visit a third party, like a check-cashing establishment.
What are the disadvantages of using credit card convenience checks?
One big disadvantage when using a convenience check from your credit card company is the added fees and interest you’ll typically pay. Each check incurs a flat fee or a fee based on a percentage of the check amount. Additionally, convenience checks are considered a cash advance, which incurs a higher APR on the borrowed amount. Plus, there’s no grace period so interest starts accruing immediately.
Photo credit: iStock/Ivan Pantic
SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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