What to Do If Your Credit Card Company Sends You A Money Advance Check

Sometimes the credit card company sends its consumer cheques allowing them to use them wherever and in any way which they like.  In most cases using cheques sent by a credit card company is not much different than charging your credit card.  This means that you should treat using the cheque sent by the credit card company as incurring further debt on your credit card.  Use the cheque only if you intend to pay back within the billing cycle in order to avoid incurring interest.

Be sure to read the fine print and the terms and conditions of the usage of the cheque.  Sometimes a credit card company can consider a credit check as a cash advance.  Cash advance is usually loaded with and extra interest rate for additional fees.  If that is the case and you are better off using the credit card rather than the cheque.

Using a check that the credit card company provides you make sense in situation where you are getting a good deal with a business that does not accept credit cards.  Using a credit check in this instance could help you save money.

The bottom line about using any kind of credit is not whether you are using a credit card or a cheque.  You should carefully ask yourself a few questions before incurring money on debt.  Make sure that you can really afford the purchase and you’ll be able to pay it off in easy monthly instalments.  Think hard and carefully to avoid impulse buying and consider saving up for it before you make the purchase.  Any money that you take on credit today will have to be deducted from their expenses tomorrow.  Think about other expenses that you might have to compromise on in order to repay the debt.
Think carefully about all these points and you will be likely to be using your credit wisely.