Definition
A convenience check is a negotiable payment provided by a credit card issuer that the cardholder may use to access their available credit.
Analysis
A convenience check is sometimes confused for a balance transfer offer, which may or may not be the case. A convenience check is normally used as a simplified method for a consumer to make a cash advance from their account, in which finance charges begin accruing immediately.
Convenience checks normally carry high interest rates and may have additional transaction fees of 2 to 4% or more. Additionally, the higher interest balance may be paid off after other lower interest balances are repaid, making finance charges accrue at a faster rate.
Convenience checks may come with the monthly account statement or they may be mailed separately. These convenience checks may be used by identity thieves to access your available credit without your permission. For this reason, any unused convenience checks should be shredded.
