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Valued Contributor
Posts: 2,814
Registered: ‎06-05-2008
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Convenience checks - is there a catch?

I'm gardening, but have an unexpected 3k tuition expense that I was thinking of putting on a credit card, and paying off over the next 6 months.  Problem is, I don't have any 0% cards.  So I was looking at offers, but really didn't want another app, when I received a nice package of convenience checks for my Capital 1 card.  The limit is 3500, and I can pay the tuition with a 2% (60 bucks) surcharge, and it will be zero interest for a year.

 

This is way cheaper than putting it on a card without 0% interest...  But I am concerned that I might be missing a "catch".

 

I did read the fine print...  Now, it's my understanding that if I use the card after that, they will start charging me interest.  Also, if I go past the 12 months paying it off I will pay interest.  I can afford to pay about a thousand a month towards this, so paying in time won't be an issue.  I have already removed the automatic charges I had going to that card.  Is there anything else about these checks I should be worried about?

 

Is there another hidden catch I should be wary of, or something I've missed?  If anyone knows, it will be yous guys.

3-26-15: FICO EXP: 828 - EQU:820 - TRAN: 828 - AVG: 825 +275 points from JUN 2008 - MY CREDIT JOURNAL

Frequent Contributor
Posts: 412
Registered: ‎04-02-2012
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Re: Convenience checks - is there a catch?

You really should be using your savings account for stuff like this.  That's what an emergency fund is for.  I wouldn't do this on a CapOne check feature.  CapOne is the devil and I've regard them as a sub-prime card a la First Premier, Orchard Bank and Credit One these days since that's how they market their products and treat their customers.

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Valued Contributor
Posts: 2,359
Registered: ‎09-16-2011
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Re: Convenience checks - is there a catch?

I use my convience checks from CapOne at my local grocery store, they don't take cards, works fine no surprises, looks like a normal purchase and and  no fee's pay it off by the normal time and no interest. No cash advance fees. In fact if i time it right I can get a few extra days because they don't post imediately take like 3-4 days for processing. 

 

 

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Senior Contributor
Posts: 3,869
Registered: ‎01-10-2008
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Re: Convenience checks - is there a catch?

Just ensure the auto charges were stopped in time not to post one more time on the cap1 acct, do not use the card for purchases until promo is PIF. Read the terms and conditions and save them, do not give them any opportunity to renig the zero promo offer, like paying late.

 

 

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
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Valued Contributor
Posts: 2,814
Registered: ‎06-05-2008
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Re: Convenience checks - is there a catch?


Razeus wrote:

You really should be using your savings account for stuff like this.  That's what an emergency fund is for.  I wouldn't do this on a CapOne check feature.  CapOne is the devil and I've regard them as a sub-prime card a la First Premier, Orchard Bank and Credit One these days since that's how they market their products and treat their customers.


Yup, I should.  Except that I am sticking with a rigid emergencies only policy for savings.  Right now I'm putting an extra 1k a month towards car loan, so I could easily pay off the 3k.  I know they are sub-prime; that's why they are the card not in use.  I am using my other cards for daily spending and work expenses to maximize rewards.  As long as I understand the terms I think I'll be fine.



jamesdwi wrote:

I use my convience checks from CapOne at my local grocery store, they don't take cards, works fine no surprises, looks like a normal purchase and and  no fee's pay it off by the normal time and no interest. No cash advance fees. In fact if i time it right I can get a few extra days because they don't post imediately take like 3-4 days for processing.  

This is a different deal than a normal convenience check - it does have a 2% fee, but then is 0% interest for 12 months.



score_building wrote:

Just ensure the auto charges were stopped in time not to post one more time on the cap1 acct, do not use the card for purchases until promo is PIF. Read the terms and conditions and save them, do not give them any opportunity to renig the zero promo offer, like paying late.


Yeah, paying late and going to the penalty APR would be a major fail.

3-26-15: FICO EXP: 828 - EQU:820 - TRAN: 828 - AVG: 825 +275 points from JUN 2008 - MY CREDIT JOURNAL

Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
0

Re: Convenience checks - is there a catch?

Why do you think you have to pay interest on your other charges.   If you PIF all the other charges over the minimum payment there should be no interest.

 

0% deffered interest deals are great, as long as you pay off in time.  

Valued Contributor
Posts: 2,039
Registered: ‎01-24-2012
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Re: Convenience checks - is there a catch?


Wolf3 wrote:

Why do you think you have to pay interest on your other charges.   If you PIF all the other charges over the minimum payment there should be no interest.

 

0% deffered interest deals are great, as long as you pay off in time.  


Credit card cheques often say this. I just got some today from FIA that said if any purchases post to the card after a cheque is used, the interest will be charged from that day on.

 

I think this is an alright deal; it would be better if it was no fee though.

 

Super Contributor
Posts: 7,487
Registered: ‎12-11-2011
0

Re: Convenience checks - is there a catch?

You could technically still use your card, as (AFAIK), per the CARD act,  the minimum payment is applied to the lowest interest (which would be your promo) and anything above the minimum payment (once again, AFAIK) would be applied to the highest interest section of your account. 

 

I may be wrong, so I would wait for a second opinion, 

 

Good Luck! 



Senior Contributor
Posts: 3,869
Registered: ‎01-10-2008
0

Re: Convenience checks - is there a catch?


Wolf3 wrote:

Why do you think you have to pay interest on your other charges.   If you PIF all the other charges over the minimum payment there should be no interest.

 

0% deffered interest deals are great, as long as you pay off in time.  


Because the card holder can lose the grace period on purchases if running a BT balance.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
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Mega Contributor
Posts: 15,453
Registered: ‎04-09-2011
0

Re: Convenience checks - is there a catch?

Does PSECU charge interest on posting time if you have BT's? (Sry for threadjack)



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