Approximately 28% of Americans don't use traditional banking to handle personal finances. The majority of these people use check cashing centers to handle their financial needs. Check cashing centers provide a number of useful services, but there are some factors to consider before choosing them.
Learn more about the pros and cons of check cashing centers to find out if this is a service that makes sense for you.
Pros
There are numerous reasons why people choose to use check cashing centers over traditional banks. One of the more common reasons is for their operating hours. Most check cashing centers open earlier than traditional banks and stay open later too. Also, most banks are closed on Sundays and on government holidays, whereas check cashing centers are normally open 7 days a week including holidays.
Other reasons why people prefer check cashing centers are for the variety of services they offer and the easy access to cash. Check cashing centers can be convenient because of the variety of services they offer, such as payday loans, money orders, faxing, notary, and more. Check cashing centers primarily deal with cash, which helps those needing immediate access to the money on their check. Banks often require a waiting period for your check to clear before you can access the money.
Cons
Although check cashing centers provide an alternative to those who don’t have a relationship with a bank, and sometimes for those who do have a bank account, it is a “pay-as-you go” service, meaning there are fees involved with some of the services they offer. These fees are normally inexpensive; however, they can add up over time. Also, a majority of the fees charged by check cashing centers can be avoided by having a checking account at a bank.
The fact that check cashing centers deal primarily in cash can often create a problem for people cashing their check or pay their bills. When you cash a check at check cashing centers, you are given the entire amount in cash, which can be inconvenient having to carry around so much cash at one time. People who pay their bills at check cashing centers often pay with cash, which makes them more vulnerable to loosing/misplacing their money on the way to the check cashing center.
Conclusion
Deciding on whether to use a check cashing center comes down to your individual financial situation. Check cashing centers do offer a number of conveniences that traditional banks cannot offer; however, some of these conveniences come at a price. If you decide to go with a check cashing center, it is important to shop around for the best priced service and make sure you understand what fees may be involved.