Richel Ann Salazar Olympia

Check Cashing: The Pros and Cons You Need to Know Do you consider using check cashing services? If you are having doubts or simply want to weigh in if cash checking is worth it, here are some pros and cons you can look at first. There are businesses and individuals who use checks for payments of goods and services. This is not very convenient for some especially when clearing the checks meant waiting for several days. Being able to have on-hand cash is always needed, and this is where check cashing services comes in. But is using cash checking services worth it? The Pros To answer the question, let’s talk about the pros and cons of using check encashment. We’ll start with a few pros that make more people use this type of financial services rather than going to banks and why you need to start using it, too. You Don’t Need a Checking or Bank Account This is known to be one of the best pros in check cashing- not having your own bank account is okay. Check cashing services do not require you to have a savings or checking account. You only need to endorse the check, pay a little fee and you get the rest in cash, and you don’t have to wait too long! You Get the Money Faster For many who are in need of cash, whether for emergency use or simply want to get their cash in an instant, this is a huge help. Most banks will take a few days to clear a check, sometimes even holding the check with a significant amount for more than a week. People who need to pay in a hurry will not want to wait for a week just to get their hard earned money. Convenience is a Big Plus As mentioned in the first pro, getting cash is still convenient. There are some establishments that just does not accept check payment, and this can be a pain when you need to pay for a product or service ASAP. Some check cashing services accept small to relatively huge amount of checks. Less Costs than Having a Checking or Bank Account Most bank accounts will surely get your money charged once you use a little more than your maintaining balance. Yes, it is in the fine prints of the documentations you signed when you opened your account. And these costs include checks that you deposit in your account. The Cons Much like any other processes of sort, check cashing also has its cons that people may encounter every now and then. These cons work for both the person using the check encashment services or the institution doing the encashment. Check Cashing Does Not Build Your Credit History Unlike having a bank account, check encashment will not help in building your credit history. You will be spending cash and since it is not deposited in your bank account, the way you spend it will not be recorded. Unless urgently needed, depositing checks every now and then is still advisable. Security is a Question Banks and other financial institutions have their measures in checks but there are still a few fraudulent checks that go through. This is also true for check cashing- though these services check every transactions there will be a few bad checks. So if it takes more than a few minutes, as a client having a little patience is a must. The Costs May Also Be High There are check cashing that “abuses” their clients’ need and will impose high rates. There are services that will encourage you to be chosen only to find hidden charges that are even higher compared to bank charges. You need to choose the check cashing service well and be on the lookout for check cashing services that offer “too good to be true” charges. These pros and cons may also differ depending on how effective and reputable your choice of cash checking institution you choose. Make sure you ask more than just how much you are going to get from the check you have. Reading the fine prints and getting the right information matters, and having the best check cashing service provider is, too!