What Is a Convenience Check, and Should I Use One?

A convenience check is a blank check that draws money from your credit card’s credit limit for a specific transaction like paying off a credit card balance through a balance transfer, covering a purchase or getting a cash advance.

"Convenience checks are tied to your credit card account," says Bruce McClary, a spokesman for the National Foundation for Credit Counseling. "It looks like a personal check. You fill it out, sign it and cash it as a cash advance. You can write it to a retailer to purchase things. It's very flexible in how you can use it. That’s the attraction for consumers."

A convenience check can arrive in the mail as part of a low-interest promotional offer, or you can request one through a credit card issuer. Before using one, though, it's important to read the terms carefully to understand which transactions the promotional interest rate applies to. If it doesn’t apply to a purchase or a cash advance, using a convenience check could cost a lot of money in the form of interest and fees.

Here’s what's critical to know before using a convenience check.

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Other names used for a convenience check can include a “credit card convenience check” or a “balance transfer check,” either of which will use your credit card’s credit line to perform a specific transaction.

Understand the terms before using one

The terms can vary depending on whether you’re using a check to transfer a credit card balance, make a purchase or get a cash advance.

Credit card checks can help consumers if used wisely, McClary says. "If the check is going to be used to pay off an account that is charging a higher interest rate and whose terms are less favorable than the convenience check," it makes sense to use it, he says. "The 0% offers are good. You just need to be very sure of your ability to pay off your transferred balance in the time period."

There are also several other factors to weigh before using a convenience check. If the terms of the check are unclear, call your credit card issuer and ask for assistance.

Factors to consider before accepting a convenience check

You can figure out the cost of using a convenience check by exploring the answers to the following questions based on your intended use of the check.

What are the terms for using a check as cash?

Convenience checks often come with a 0% annual percentage rate for a certain amount of time, but this interest-free period might apply only if you use the check to transfer a balance to your card.

Read the terms or ask your credit card issuer if the 0% APR will also apply when the check is used for a purchase or a cash deposit into your bank account. Those uses might be considered cash advances, which means that different charges could apply. Interest rates for cash advances can be significantly higher than your standard interest rate for purchases, and they usually also incur a fee assessed on the amount borrowed.

For comparison, here’s a hypothetical example to illustrate how the costs could differ based on the way a convenience check is used. (Actual terms will vary by card, transaction type, the offer itself, and sometimes your creditworthiness. The figures below are merely for illustration.)

Transaction type	Payment method	APR	Additional fees
Balance transfer	As a charge to the credit card	0% for 12 months	Balance transfer fee, usually between 3% and 5% of the amount transferred
Cash advance	As a deposit to a bank account	29.49% (instead of the standard ongoing 18.28% to 28.24% for purchases)	Either $10 or 5% of the amount transferred, whichever is greater
Purchases	As a check to a merchant	29.49% (instead of the standard ongoing 18.28% to 28.24% for purchases)	Either $10 or 5% of the amount transferred, whichever is greater

What does the 0% APR period mean for purchases?

Understand how the 0% APR offer might impact your credit card’s grace period. A grace period is the window between the end of your card’s billing cycle and the next payment due date, during which time you can pay off the balance without incurring interest charges or late fees.

When a grace period is in effect, you'll only start owing interest on purchases if you don’t pay off the entire statement balance by the due date. But if you start carrying a balance after using a convenience check, interest can begin accruing immediately.

If you're on a debt-payoff journey, this has the potential to get complicated and delay your progress. That's one reason why it's important to avoid adding new purchases on a card you're attempting to pay off.

» MORE: What is a good APR for a credit card?

Is there a balance transfer fee?

Banks typically charge a fee to transfer a balance from a different bank — usually 3% to 5% of each amount transferred, depending on the card. If you’re transferring a $5,000 balance, for instance, it could cost you $150 to $250. Compare that cost to the interest charges you would pay over time without the balance transfer, and determine which will save you the most money.

» MORE: See NerdWallet's best balance transfer credit cards

What happens if you exceed your credit limit?

If the amount put on your credit card with a check (plus any balance transfer fee) pushes you over your credit limit, additional costs could apply, such as penalty fees and interest rates. The terms will vary by issuer.

To avoid these issues, know how much available credit you have before using the check. You can find this information, as well as possible fees or interest rates that could apply, by logging into your account or contacting your credit card issuer.

Is there a 'use by' date, and what are the terms?

Just like yogurt, these offers have an expiration date. You have a specific period of time to make a transfer or use the check for a cash advance or to pay for merchandise. The terms of use vary.

Sometimes a check written after the date will be declined. Check the date on the check and understand the terms before using it.

Will credit card checks affect your credit scores?

A credit card check shouldn't hurt your credit scores as long as you manage your credit card responsibly — paying on time and keeping your balance low. Borrowing a significant amount can change your debt ratio, or max out your credit line, which can negatively impact your credit scores.

Your credit scores can eventually bounce back as you pay down the amount diligently on every due date over time. One way your credit scores may be indirectly affected is when you’re using a check to transfer a balance from another card and then close that account. This action may cause your credit utilization ratio to increase and credit scores to decrease. Your credit utilization ratio is the amount of available credit you’re using, and it's a key component that impacts credit scores.

When you remove an account and its credit limit, the credit that you’re using will appear higher in comparison to the amount of credit available. Your credit scores can bounce back from this in the long term, but it’s something to be aware of in the short term if you need to apply for anything that requires a credit check.

» MORE: Does closing a credit card hurt your credit scores?

When to use a convenience check

A convenience check can make sense if the 0% APR offer will save you money compared to other payment methods. (Don't forget to factor in any applicable balance transfer fees.) It’s generally best to avoid using them for purchases or cash advances if they will trigger costly fees or interest charges, especially since less expensive alternatives might be an option.

Some credit cards by major issuers offer the chance to tap into your credit card’s credit limit for an installment loan that doesn’t require an origination fee or application process. Such offers may charge interest at a lower rate than your credit card’s normal ongoing APR, but compare the costs among your options — including personal loans — to choose the one that saves the most money.

If after comparing the options, costs and terms you decide to accept the credit card check offer, make sure you have a plan to pay off the amount owed. It's ideal to borrow only what you knowingly can afford to pay back after budgeting expenses and savings for emergencies.

Safe practices with convenience checks

Any unused convenience checks should be shredded to prevent credit card fraud. If you want to avoid being tempted with these offers, or prevent them from filling your mailbox and shredder, you can opt out by going to www.optoutprescreen.com or calling 1-800-5-OPT-OUT. OptOutPrescreen.com is run by the Equifax, Experian and TransUnion credit bureaus, along with Innovis Data Solutions.

You can opt out of solicitations for credit and insurance offers for five years directly online through the opt-out website. You’ll need to fill out personal details, including your Social Security number, address and date of birth. If you want to opt out forever, you can initiate the request online, but you’ll have to fill out and mail in the Permanent Opt-Out Election form found on the website.