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Credit Card Cheques
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rbulph
Posts: 547 Forumite
in Credit cards
Anyone use credit card cheques? I had always thought they were a bit of a waste of time, but I got some today and looked at their terms more closely. There's no interest if you pay them off in full by the appropriate payment date and no charges for using them. So I can write a cheque for £4000 (my credit limit) to myself, and get that credit for free for about 40 days. If I save that at 5%, £4000 * 40/365 * 5% =~£20. So actually quite useful really. Any views?
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Every one that I have been sent you pay a 2% fee on, even if there is an interest free period - who sent yours?0
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CapitalOne. They say:
"Q. Are there any extra fees connected to using a cheque? A. There are no additional fees for using these credit card cheques. However, if your cheque is returned because you don't have enough available credit on your Capital One account you will incur a charge."
And I've looked in the ts and cs for the account and can see no mention of a charge for credit card cheques.
I think I saw recently that the government was planning to outlaw credit card cheques. Perhaps this is in response to that - issue some cheques that are genuinely useful to the consumer, so that the goverment's case is weaker.0 -
rbulph wrote:CapitalOne. They say:
"Q. Are there any extra fees connected to using a cheque? A. There are no additional fees for using these credit card cheques. However, if your cheque is returned because you don't have enough available credit on your Capital One account you will incur a charge."
I've been using Capital One cc cheques for a while now because the first few books were free of interest and of fees. But you do have to watch. For the last lot they sent me they wouldn't have charged a fee but they would have charged interest as a cash advance :eek:. So they went straight into the shredder!!0 -
Thanks, I'll watch out for that.sleepless_saver wrote:I've been using Capital One cc cheques for a while now because the first few books were free of interest and of fees. But you do have to watch. For the last lot they sent me they wouldn't have charged a fee but they would have charged interest as a cash advance :eek:. So they went straight into the shredder!!0 -
The accompanying letter will detail the T&C's for the cheques, and will say if they will be treated as Purchases, Balance Transfers, or Cash Advances.
Also, open the cheque book at page 2 - which has "Important information about how to use your credit card cheques" as it's page header. Look at the right hand column and you will see...
Now to the cheques themselves. Look at the top left hand corner (below the words "Capital One" and above the word "Pay") - this is where you will find the letter that describes what kind of cheques you have.S - means that the cheque will be charged at your Cash rate with a fee.
P - will be charged at your Purchase rate without a fee.
B - will be charged at your Balance Transfer rate without a fee, unless otherwise stated in your agreement with us.
Finally, I would advise thoroughly reading the T&C's before embarking on using credit card cheques. Not for nothing are the OFT questioning the card providers about their issue!0 -
I've got Ps.0
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also if you buy goods with them, you don't get the same rights as you would using your credit card.0
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P - will be charged at your Purchase rate without a fee.I've got Ps.
:wall::wall::wall::wall::wall::wall:lindabea wrote:Probably means that interest will accrue from the date the cheque is cashed. ie treated as a cash advance.0 -
rbulph wrote:I've got Ps.
Save them - they're like gold dust. Write a cheque to yourself for the full amount of your credit limit, place in high interest savings account until due date and pay off. Wait till next statement date and repeat. Do this for as long as you have "P" cheques. I've been doing this with CapOne for 5 years and still have four years worth of cheques left. Easy money.0
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