If I have a CL of 9k on one card.....could I write a check for that amount to a private individual if the CC company issued me checks with the CC card? I have never done this and was wandering how this works.
I would be VERY careful with CC checks. If anything, I would ONLY use them to put funds into my own banking accounts, or send them to my own CC accounts for BT. CC are HIGH RISK items for banks. Many banks will not accept them for immediate deposit (unless the maker of the check is putting it into an account with the same name). Otherwise, the items are sent for direct collection from the issuing bank or CC company. This can take up to 60 days before funds are received and directly deposited into the account they are intended for. Just an FYI.
MBNA does an EFT direct to your checking account...$75.00...BUT NO 10 DAY HOLD!!!! even though the TURN-AROUND time is usually 4-6 days (from date of deposit into your checking account...till it is charged against your credit card) THEY GET THE BENEFIT...YOU DON'T You can then write all the checks you want till the money runs out... SOME ARE CHEAPER THAN $75.00...SOME EVEN FREE!!!
Usually banks determine the need to send CC checks out for collection by account status. If your banking account is less than 24 months old, it will most certainly be sent out for collection. The reason that credit card checks are higher risk items is because (according to some internal statistics) over 57% of these checks are returned NSF. These checks take a while to clear (in most cases). Some CC checks clear rather quickly (like Citibank). In any case, if writing these checks out to OTHER people, they may have those funds delayed until the funds are collected. I recommend depositing the funds into your own account, then writing a check off your bank account. This may save you the most time and aggravation, PLUS the receiver of the funds will GET their funds.
This is a better way than depositing the check directly to your account. This is yet another option that is quicker than sending the CC check out for collection. Chase will also do a direct EFT of the funds. Just call your CC issuer. They should be able to give you some of these options.
Re: Re: Writing checks on CC's It sounds like you are saying a CA gets a-hold of this... It is just like any other check...it gets deposited in your bank and they send it out to their deposit bank and it eventually gets to the credit card's bank...NOT 60 DAYS THOUGH...4-6 days (IN MY EXPERIENCE)~~~AND I HAVE DONE MANY OF THEM...
Re: Re: Writing checks on CC's If you haven't figured it out, most of the industry has now gone to electronic submission of checks. Which is why you start to get these stubbies back instead of your real check. Since the real check is held by the bank or whatever and ACH drafts are presented (instantly). I've often wondered how a bank can cash a check so fast, then i started noticing the returned images (i dont get my checks returned in mail). The returned images were not the checks i wrote for (bill/rent/etc) they are electronic vouchers at some places. Fleet is a PITA bank, they put a ACH draft on hold on my account. I was like dude i made a ACH payment of $4000 to you, it cleared, you wouldn't have gotten the cash. But no, they had to call the bank and verify it. This was a week after the ach cleared my checking account. goofy bank fleet is
Re: Re: Writing checks on CC's I have a routine I follow when I get CC "convenience checks." I careful open the envelope with a letter oprner. Then carefully remove the contents of the envelope to ensure they are no changes in terms, etc. Then I place the checks gently into my shredder and release. It makes no sense to me to do ths because although you may get a 0% rate on balance transfers, any payments you make pays off your lower rated transactiosn first. Thus, you will still pay interest charges unless you pay off the card in full -- because the payment will be applied to your 0% BT first, and your purchases with the higher rate will still be owed. Plus you get to pay 4%, at least, of the transfer. Not worth it if you ask me.
Re: Re: Re: Writing checks on CC's You think thats bad. I went through the same deal with Fleet for a $400 payment. The payment to Fleet cleared and I noticed my available credit was still being held. So I called, and they told me we had to call the bank. When I gave her my banks number her response was "Don't they have a 1-800# for us to call." I mean please Fleet probably pays 2¢ a minute for phone calls. Anyway I had to search and sure enough they had a 1-800# but it was still ridculous.
