For millions of Americans who don’t have a bank account or who cannot qualify for one, check cashing centers provide a place to cash checks, pay the bills, get a neighborhood loan and more.
Although check cashing services may not exactly be the most economical way to cash your check without a checking account, they are a useful service for those people who have no other options.
Check cashing comes in a variety of flavors too, with 24 hour check cashing centers, personal check cashing services, and even online check cashing operators.
Pros & Cons of Check Cashing
Many people are wary of relying on check cashing services due to concerns about cost and safety, but some prefer them to traditional banks.
What are the potential benefits and potential setbacks that you could face by relying on a check cashing vendor?
It gets complicated, but fortunately, we’re here to break it down for you and help you determine whether or not this avenue fits your financial situation.
Advantages of Check Cashing Centers
For some, the use of check cashing centers is almost a necessity because they are unable to open checking accounts at traditional banks.
This could be due to terrible credit issues, financial fraud or other concerns that end up being cut off from the typical banking that most Americans enjoy, but whatever the case, there is another way to get money from your checks.
Check cashing centers are often more convenient than traditional banks, because they often have longer business hours (opening earlier and closing later), but they also offer a variety of other useful services, like:
- Neighborhood loans and other types of short term installment loans
- Money transfers
- Bill payments
- Money orders
- Stamps, envelopes, and mailing services
- Notary public
- Currency exchange
- Prepaid debit and credit cards
Check cashing centers are also faster than traditional banks, leading to some consumers relying on them when time is of the essence.
When a check is cashed into a traditional bank’s checking account, the whole amount of the check isn’t usually accessible, but that’s not the case at a check cashing center.
When you use check cashing services, your funds are made immediately available, because the amount of your check is given to you in cash (minus the service/transaction fee).
Disadvantages of Check Cashing Centers
Some people certainly love check cashing centers, and will return to them repeatedly, but for many individuals, their convenience comes at too hefty a price.
The most common argument against the use of check cashing is that their fees are simply too high. Typically, these places charge customers an average of 3-5% per check, regardless of the nature of the check.
On average, the annual costs of using a check cashing service is significantly higher than the fees associated with using a checking account for similar needs.
Now that most banks offer online access, direct deposits, and electronic payments, check cashing has become significantly less popular, even for those individuals who are unable to open a traditional bank account.
Check Cashing Alternatives
In recent years, many Americans have turned to new alternatives, like second chance bank accounts, which provide users the convenience of check cashing accounts without the requirement of passing a credit check, or Chex Systems verification.
Most people are unaware that there are other ways of paying your bills and cashing your check without going to a check cashing center, but there really are plenty of alternative options, including:
Prepaid Cards
Most prepaid debit card companies allow card holders to have payroll and government issued checks directly deposited into their account for free. Once a payroll check is deposited, the card holder can withdraw their money, or make purchases against the deposited funds.
Walmart
Most Walmarts across the nation allow customers to cash payroll checks, as well as some government issued checks. Walmart will cash checks that are equal or less than $1,500.
The cost for cashing a check is usually a maximum charge of $3, and it depends on the amount and nature of the check, but it’s typically less costly than visiting a check cashing center.
To cash a check, the customer has to show a valid ID and enter their social security number using a PIN pad, but that’s it!
Grocery Stores
Some local grocery and liquor stores now offer check cashing services to their customers.
For example, most grocery stores will cash non-personal checks other than tax refund checks, typically with a low fee like $1 for every $100 cashed.
Car Capital Financial
Deciding on whether to use a check cashing center comes down to personal choice. In the end, there are good reasons for and against using such a service. Accessibility, convenience, cost, and your financial situation should all come into play when deciding which service will work best for you.
Should you need emergency cash assistance keep in mind that there are safer, more reliable options for raising money quickly than check cashing, credit card advances, and neighborhood loans.
Call Car Capital Financial to get yourself a low-interest, secured personal loan, in the form of a car title loan. Our loans use the equity in your vehicle as collateral for a cash loan, allowing you to raise a great deal of money quickly, and without having to sacrifice the use of your car!
Whether you’ve got a car, motorcycle, rv, boat or other titled vehicle, we can get you the cash you need in as little as 30 minutes. We’re Southern California’s leading auto title loans company, and we’ve offered our safe, reliable and affordable title loans to Southern California residents for over 15 years. Title loans are issued based on the borrower’s ability to repay the loan.
To get you the money you want in as little as 30 minutes, give us a call now at 1-888-500-9887.