Using Credit Card Cheques to put Money into Your Bank Account

The beauty of credit cards today is that they are becoming more versatile than ever. Aside from the simple “swipe now, pay later” basis behind its initial creation, the credit card today is like a financial loan. It provides financial means without the hassle of paperwork. Its requirements tend also to be less stringent than that of formal financial loans. This is all designed by the credit card companies to provide their clients with the convenience of money when they need it most.

In recent years, the banks have employed additional methods for providing financial convenience to their customers. They have begun issuing blank credit card cheques to their clients. These blank cheques are based upon the credit card issued; in fact, the credit card itself acts like a bank account from which these cheques can be written. And, in essence, these credit card cheques can function in the same manner as a regular cheque, except it’s backed by the funds from your credit card account. To clarify, when you pay a person, or a retailer, with these cheques, you are actually paying via your credit card. The amount of available balance on the credit card is the available funds for which the cheques can be written.

These credit card cheques are very versatile. Whereas a credit card itself does not work the same as cash, the credit card cheque does. They can be used for any purchase, but what is perhaps more important is that these checks can be written to yourself, and they can be deposited right into your own bank account. By writing one to yourself, you can provide yourself that available cash you have needed but could not obtain. It is, again, the convenience of a financial loan without the complicated approval process and paperwork. In fact, it is a loan from yourself: since you already have the credit card account, you are simply loaning the money to yourself when you write deposit a credit card cheque into your own bank account.

There are a few precautions, however, when utilizing your credit card cheques. Although they function as regular checks, they do involve a cost. Credit card company financial policies will list the cost per cheque transaction. Usually there is a 3-4% fee per cheque written. Another precaution is the interest that will accrue based upon the amount: whatever amount your write the credit card cheque for will become the balance on your credit card. That balance is subject to the credit card’s annual percentage rate, so keep this in mind when writing yourself a cheque. Fees and interest rates can be worth the convenience of quick cash, and remaining aware of them will lead to responsible use of these credit card cheques whenever you need to.

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