What is check cashing?
Check cashing is a service through which you can get money from the checks given to you, even if you don’t have a bank account. Check cashing services can also provide short-term loans, sell prepaid cards, etc.
Where is check cashing done?
There are many physical locations where you can cash a check, like stores, but there are also some apps through which you can cash your checks.
What are the charges or fees for cashing checks?
The amount a business can legally charge to provide check cashing service varies by state, and is between 1 and 12%. So, for a $1,000 check, you would pay between 10 and 120 dollars depending on where you cash it.
Are there any alternatives to check cashing?
Actually, check cashing is an alternative to using a bank to cash a check! So there aren’t any alternatives to the alternative. But you can always use a regular bank or credit union to cash a check – but only if you have access to one.
What are the advantages of check cashing?
The 2 main advantages of check cashing are the ability to get paid through a check even if you don’t have a bank account, and receiving the money instantly.
Are there any disadvantages of check cashing?
If you were to cash a check at a traditional bank, you wouldn’t incur any fees. So the main disadvantage of check cashing service is the high fee.
So, who should use check cashing service? Should I use it?
Due to the high fees, check cashing should only be used by people who either (a) need the money immediately, and can’t wait for the time it takes a bank to clear a check, or (b) people who can’t use traditional ways to cash a check as they don’t have access to an account at a bank or a credit union.
So if you fall in one of these two categories, then a check cashing service is right for you. On the other hand, if you have access to a bank account and are willing to wait while the check is clearing, then it is probably best if you don’t use check cashing.
Podcast: What is Check Cashing or Cashing of Check / Cheque
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about cashing of check: What is check cashing, Where is check cashing done, What are the charges or fees for cashing checks, Are there any alternatives to check cashing, What are the advantages of check cashing, Are there any disadvantages of check cashing, Who should use check cashing service – should you use it, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/what-is-check-cashing-or-cashing-of-check-cheque/