Credit card cheques

iAMaLONDONER

Out of curiosity how do they do work or how would one acquire one?

I know they are rather expensive but I've never seen one

20aday

iAMaLONDONER wrote: »

Out of curiosity how do they do work or how would one acquire one?

I know they are rather expensive but I've never seen one

I know I've had them in the past when I was with Capital One; do any of the credit card companies do them anymore?!

reclusive46

I don't think they really exist anymore but it was effectively a cheque book on the credit card account, which allowed you to write cheques to people using the credit from the account at the cash advance rate.

I don't think they were ever all that popular.

chattychappy

I used to get promotional cheques from MBNA and CapOne. You could write them to yourself and put them in your bank account. The only one I used was an MBNA one - 0% APR for 6 months, no fee. Nowadays MBNA will transfer the money direct to your current account, no need for the cheque. (And they seem to want higher fees these days.)

In the absence of a promo deal, then they were expensive and operated like a cash advance, but with the convenience of your being able to give them direct to third parties and not be bound by an ATM limit.

I think they are still allowed to issue them, but changes in regulation has made it not worth their while.

greenorange

I used to get them from CapitalOne a few years ago. At the 35% cash withdrawal rate they charged for cheques, I never actually used one.

YorkshireBoy

Capital One used to occasionally send out cheques at 0% BT rates (in those days fee-free too!), so you had to be careful to read the code carefully before shredding them...because not doing so would have been a stoozing opportunity missed.

iAMaLONDONER

Looks like I missed the boat

No 0% BTs or CC cheques on the horizion!

Hazzanet

Used to have a book of them connected to my Co-op Clear Card. As there was no cash advance fee on the card, and the cash advance rate was the same as the purchase rate (when I had it at least) it was effectively a credit card and flexible loan in one.

The Co-op stopped sending them years back (around 2009) and wrote out saying that any cheques still in circulation would no longer be honoured (ISTR that they also said they'd charge the bounce fee if you tried to use one).

I think the decision had something to do with this:

http://www.uswitch.com/credit-cards/credit-card-cheques/