It is very common to receive convenience checks from your credit card issuer. These promotional checks look like free money, with 0 percent offers in bold print. These offers may seem like a tempting way to pay for holiday shopping, but consumers need to read the fine print to know exactly what you are getting.
The convenience check is linked to your credit card account. The promotional letter describes the checks as an easy way to get cash, transfer balances, or make a purchase that you have been putting off. It all can be yours if you just sign the check. But these convenience checks can be a very costly way of borrowing money.
If you know you will never use the checks, open the letter from your credit card issuer and shred the checks to protect yourself from the possibility of fraud. If you desire, you can call your credit card company and tell them to stop sending the convenience checks.
Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card.
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