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Convenience checks - is there a catch?

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p-
Valued Contributor

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.

Message 1 of 11
10 REPLIES 10
Razeus
Frequent Contributor

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.

My Wallet:
AMEX Platinum | Discover It $20.3k | Chase Sapphire Reserved $16k | Chase United $12k | AMEX SimplyCash Plus Business $11.6k | AMEX Schwab $9k | AMEX BCEP $8.2k | Citi Costco Anywhere Visa $8k | Chase Amazon Visa $8k | Chase Sapphire Preferred $7k | Chase Freedom $5k | Citi Simplicity $5k | Paypal Extras Platinum $5k | Wells Fargo $5k | Citi Best Buy $4.2k | Citi Visa Signature $3k | Care Credit $3k
Message 2 of 11
jamesdwi
Valued Contributor

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. 

 

 

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Landmarkcu Personal Loan 10k
Message 3 of 11
score_building
Senior Contributor

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
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 4 of 11
p-
Valued Contributor

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.

Message 5 of 11
Wolf3
Senior Contributor

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.  

Message 6 of 11
navigatethis12
Valued Contributor

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.

 

Message 7 of 11
jsucool76
Super Contributor

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! 

Message 8 of 11
score_building
Senior Contributor

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(?)
TU 08: Barclays, Discover
Message 9 of 11
LS2982
Mega Contributor

Re: Convenience checks - is there a catch?

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



EQ FICO 548 3/3/16
Message 10 of 11
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