Skip to main content

Check Cashing Stores Expand Their Services to Poorer Areas

No matter how you may feel about it, check cashing stores are becoming more and more common throughout the United States. While these establishments can now be found just about anywhere, they are particularly prominent in poorer areas, a fact that is heavily criticized. Many think that check cashing facilities prey on the poor and uneducated and take advantage of their economic situations by charging outrageous check cashing fees. A lot of the criticism lodged against these stores, however, springs from misunderstanding of what these companies are all about and how they actually function.

The Basics of Check Cashing Services

While every check cashing service is different, most do have a few things in common. These establishments, which may be housed in their own buildings or which may be a part of a larger business such as a pawn shop or a grocery store, generally cash a wide variety of checks for a fee. Again, each company will set its own rate, but most charge a small percentage of the check, so the larger the amount of the check, the more it costs to cash it. There are some check cashing facilities, however, that simply charge a flat cashing rate, though these are few and far between. Since it is usually free to cash a check at a bank at which you hold an account, many feel the check cashing rates charged by these companies are unfair. It is important to remember though that not everyone can afford the monthly fees and charges associated with a bank account and, due to past financial mistakes or transportation issues, some can’t use a traditional bank, making these check cashing services their only option.

Do More Than Just Cash Your Check

Most check cashing services actually offer a host of other services as well. In states where it is legal to do so, these facilities may offer payday loans. Payday loans seem like an ideal solution for those who are living paycheck to paycheck and who require funds to get them through to the next payday. As the name implies, the payday loan lender gives the borrower the funds in cash, but mandatory repayments of the loan must begin by the person’s next payday. In most cases, the payment or the full amount due, depending on the agreement, will be taken directly from the borrower’s bank account on a specified date. While it’s easy to see how these loans could easily get out of hand, the smart borrower will find that repayment is manageable and will understand that payday loans should not be used repeatedly or as a long-term solution. Other services typically offered at check cashing facilities include selling of prepaid “credit” cards, notary services, and the selling and cashing of money orders. Some facilities also act as payment centers and will accept payments for water bills, electricity bills, or other commonly paid bills.

The Benefits of Using a Check Cashing Service

Check cashing services are not for everyone and, indeed, they do tend to be more practical for those who have found themselves in some kind of financial difficulty. However, if utilized correctly, individuals can actually use these services to their advantage. They can provide a good way to slowly get back on one’s feet and, if used carefully enough, can eventually lead to financial freedom.


Popular posts from this blog

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

What are the Consequences of Overspending in Life?

How overspending can ruin your financial life? With today’s expenses and their prices, it can be very hard not to overspend. Still, that isn’t an excuse to stray out of your budget. You know why? It is because overspending can only lead to more problems than you think. Overspending can affect your whole life. With all the possible consequences, it may jump from one problem to another. Unpaid bills All the excessive shopping with your credit card can cause steep bills at the end of the month. If you keep on using your credit but don’t have enough money to pay for it in the end, then you’re surely in for a huge financial disaster. This will turn out to be missed payments, and missed payments will ruin your credit report. Missing out on payments will get your credit report marked for 7 years or more. And you can’t get rid of them by finishing them off. Credit report Overspending can cause a chain reaction of events. Once you get your bills due to overspending, it’s possible for you to mi

The Top 4 Reasons People Fail at Budgeting

Budgeting isn’t easy, and many people experience difficulty trying to get the most out of this essential financial tool.  While the concept may sound simple, adhering to your budget could be a lot harder than you might think.  To help you experience success, here are the top 4 reasons why people fail at budgeting .

How does a Prepaid Credit Card work?

Can They Really Be a Solution to Avoiding Credit Card Debt? When it comes to plastic, there are a lot of choices out there. Not only do you have the choice of credit card , debit card, or prepaid credit card, but you also get to decide which financial company you want to use as your card provider. Credit cards and debit cards are both risky. Credit cards can help put you deeper into debt, while debit cards give thieves and collectors access to your entire bank account. A growing number of people are finding that prepaid credit cards are becoming the best option. What Are Prepaid Credit Cards? Prepaid credit cards look and act just like a credit or debit card, except you put the money on the card before you make any purchases. You are only allowed to spend as much money as you have pre-loaded on the card, which means that you are not at risk of going into credit card debt from overspending. These cards also keep your money safe, because thieves will be limited to the amount that is on t

How to Make Your Title Loans Safe and Sound

Although title loans are tagged as risky, innumerable folks still use them for fulfilling their different financial obligations. Therefore, such loans are not completely bad because their significant use despite the risk factor says a lot of their pros. This makes it vital to discuss how these loans should be used so that the risk factor can be minimized up to a great extent. For those who are not aware of, the risk of title loans crop up in the form of consequences when you fail to pay back the loan. With such a failure, you are surely going to lose your car as well as decrease your credit score further.

How Equipment Loans can help your Business Thrive

Image via gettyimages Different companies enjoy common benefits from capital equipment. Machinery has direct and indirect effects on your bottom line. A new oven and forklift each make your business more productive. Meanwhile, interest and depreciation expense are tax write offs that indirectly improve business profits. However, your business may not qualify for a general purpose loan to buy much needed equipment. Some obstacles include: