Have you ever considered 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 means waiting 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 cashing. 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.
- Costs Less 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 cashing services or the institution doing the cashing.
- Check Cashing Does Not Build Your Credit History
Unlike having a bank account & credit cards, check cashing will not help in building your credit history. You will be spending cash and since it most likely will not be deposited in your bank account, the way you spend it will not be recorded. If you’re interested in building credit use check cashing in conjunction with a credit card & bank account. For those less interested in building credit – or for anyone needing cash fast – check cashing is a great option.
- The Costs May Also Be High
There are check cashing business’ 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. Luckily all of our check cashing locations offer transparent prices that are cheaper than anywhere else in the city. You’ll also get 10% off your first check cashed using the coupon on our website.
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!