Avoid Check Cashing Companies

Using check cashing companies can be a big financial mistake. Here's why.

Take a look in any town, large or small, and you can find all sorts of places that offer to cash checks for you, without a bank account. They advertise that they are "quick and easy," but using them is not necessarily a good choice.

Essentially check cashing companies charge you an exorbitant fee for turning your check into money. People may think this is the only option if you don't have a bank account somewhere, but think about it for a moment. Why should you pay someone a high fee so they can cash a check for the money that you made? What is the point?

Remember that you can always go to the bank on which the check is drawn and they have to cash it for you, even if you don't have an account there. You'll probably need two forms of identification, but for most people that's not a problem.

Avoid check cashing companies at all costs because it's not worth a chunk of your paycheck when you have such an obvious alternative solution to getting your money. You earned that money so you should keep as much of that money as possible.

Category:

Education

Tags:

• money
• finance
• prudence

[riorio23]

having a bank account costs money also. they charge you over draft fee, monthly maintenance fees/inactivity fees you have to wait for your checks to clear, you dont get interest if it is a checking account most of the time. Also there may be check printing fees. they may be paid by mastercard/visa for everytime you use your card and mastercard/visa will charge the vendor for the electronic transaction so you are indirectly charged hirer fees by vendors.

[shinesinpines]

@MikeSPx24bj9 you missed my point but thats okay. i've read what you have to say and its not worth it (debating)

[kingz9916]

@MikeSPx24bj9 Mike: I charge a low fee, and I am comfortable with it and so are my customers. I do a volume business because I do not rip people off, and after 26 years in business the community trusts me. I give good service and the customers keep showing up year after year.

[kingz9916]

AHVB: The a-hole is not the check cashing owner. I own a check cashing service, and I am not an a-hole. I work 12 hours a day, so I do work for my income. You need to educate yourself regarding check cashing services. They are needed by many, and more than the poor use them. Some of my customers make over 75k to 100k a year.

[MikeSPx24bj9]

@shinesinpines,

>> what if you need to buy something with cash asap on a sunday afternoon or on a weeknight?

-- Simple good financial economics? Save your money. If you don't have the money then you don't buy it. Plan your spending. Buy Top Ramen so you don't over extend your grocery bill and then are dying for gas money on a Sunday.

[MikeSPx24bj9]

@maggsma,

>> check cashing companies charge 2-4% to cash a check. This fee is for the service! AND they are open later than banks, some even on Sunday.

-- How is servicing the INSTANT GRATIFICATION of people a service? People can't wait till Monday??!! Big deal. They get to keep more if they go to the bank & they'll be happier. Only losers go to those rip-off places. Those crooks DO NOTHING to earn the money. They prey on people who are having hard times, just like Rental Furniture places.

[MikeSPx24bj9]

@shyguy0252002,

>> a bank does not have to cash a check for you if it's drawn on their bank.

-- It doesn't HAVE to, but most will & should. I've NEVER had a problem w/ a bank cashing a check that's BY THEM.

>> bank holds the funds ~5 days

-- I don't like it either. Who can't wait 5 days? If you're working regularily you've got another paycheck coming anyways. Allowing each paycheck to become a desperate means to put gas in your tank cuz you have NONE is just irresponsible spending.

[MikeSPx24bj9]

@kingz9916

>> I charge 2%, no membership fee, no hold on checks, & two forms of ID are not required.

-- That's extremely reasonable. I wonder how you stay in business making so little. You've got overhead.

>> People in my community depend on my business, & without it their checks would be worthless to them.

-- That's not accurate. All they have to do is go to the bank with a simple state ID & cash a check. Why would anyone not have ID? Anyone can get it, even illegal immigrants can.

[MikeSPx24bj9]

@Bosanac24Tx,

>> bc people dont have ids or bank accounts stupid white boi

-- Anyone can get an easy state ID. Even illegal immigrants can do this. It's getting a driver's license that's hard to do for illegals.

-- You don't need a bank acct. I've cashed lots of checks at the ORIGINAL bank of the check. I've seen friends go to banks where the check isn't from & that bank won't cash it.

-- No ID is no excuse. Get ID, even fake if you have to.

[Bosanac24Tx]

bc people dont have ids or bank accounts stupid white boi the charge 1 or 2 % wtf thats nothing