credit card cheques

angstorey

every month my credit card company send me 4 cheques which they say can be used in the same way as ordinary cheques or for balance transfers. I usually shred these but two years ago I used one to transfer a balance from another card. Since then I have been charged between £5 and £7 every month for doing this on top of my usual interest. I am told I will continue to be charged until the whole balnce is cleared. This seems wrong to me?

ad44downey

Credit Card Cheques should carry a financial health warning for any of the mugs tempted to use them.

ThankYouAndEnjoy!

ad44downey wrote: »

Credit Card Cheques should carry a financial health warning for any of the mugs tempted to use them.

Somewhat unfair me thinks....

I've just used a Virgin Credit Card Cheque for £4275, capped fee of £75 (that doesnt have interest charged on it - i phoned up and checked first!!) thats interest freee until March 08 statement. Saves my Girlfriends sister over £400 in interest charges.

I do agree that used incorrectly, and you could find yourself sinking fast....

My advice - Read the Terms and Conditions and dont be afraid to phone up your card issuer and ask questions .... or better still , post on MSE and ask questions before you use them (your def get a sensible response ... well; in most occasions anyway!!)

CLAPTON

could you say exactly what the statement actually says.
often cc cheques are charged at cash rates and of course paid off only after all the purchases are paid.

angstorey

the statement actually says 'cheques: At 0.013% Per Day (Promotion)

CLAPTON

0.013% per day is about 4.9% apr so it depends upon how much you borrowed and how you are using the card now.
you need to provide much more detail.

hansi

I have only two words to say about credit card cheques......SHRED THEM!

WallyMan

I have a real issue with CC cheques. I always shred mine immediately but I always wonder about the people that don't really appreciate the costs of using them and then get in a pickle

Also, what if someone nicks them in the post and just decides to use them!

Shred them straight away!

ad44downey

Yes, shred them and use them in your rabbit hutch. That's all they're good for.

johnllew

ad44downey wrote: »

Yes, shred them and use them in your rabbit hutch. That's all they're good for.

It might not be wise to be so hasty. Some cheques are worth having, particularly "P" cheques from Capital One. They are treated as purchases, benefit from the normal interest-free period and have no fee. You can write them to yourself, pay the money into your savings account and repay 7 weeks later. Nice little earner.

ajaxgeezer

Wouldn't they be a good way to try to generate a debt if you don't have one? A card which has no SBT facility but gives cheques could be used to generate a debt then immediately passed to another card?