Cheque clearance currently takes approximately 4-5 working days, sometimes longer at some banks. Whilst financial institutions claim that the bank clearing service is there to prevent cheque fraud, the more probable reason is that financial institutions make interest on the millions of cheques awaiting clearance. Cheque cashing services help consumers to get a quick cash advance today.
The Benefits of Cheque Cashing Services
- Money issues. Short term money issues may mean that a consumer needs money fast. Having to wait 4-5 working days for cheque clearance may mean that it isn't possible to cover rent or mortgage payments. A quick cash advance can be of great assistance to those that need money fast to help with essential household bills.
- No bank account. Having no bank account may mean that customers have no place to pay their cheque. It isn't possible to pay a cheque into an account in a different name due to the risk of cheque fraud. Many consumers have no alternative but to turn to a cheque cashing service for a quick cash advance.
- Convenience. Instead of waiting for 4-5 working days, it is possible to get a quick cash advance within 10-15 minutes from a pawnbrokers, such as Cash Converters or Albemarle and Bond;
- Opening hours. The majority of cheque cashing services are open to the public on Saturday and Sunday. Contrast this with banks that don't consider these working days for the purpose of cheque clearance.
- Other services. Other sources of quick cash advances are available, such as Payday loans.
The Negatives of Cheque Cashing Services
- Charges. Cheque cashing services don't provide a quick cash advance for free. There are overheads and staff costs to pay, let alone underwriting the risk of cheque fraud and non-payment. The cost of getting instant cheque clearance is normally about 10%.
- Less money. After meeting the charges imposed by a pawnbroker, there is less money available to cover other money issues. Quick cash advances can become habit-forming.
- Identification. In order to avoid awaiting for cheque clearance, all cheque cashing services will require a bare minimum of two forms of identification. There must be at least one form of proof of address and one form of signature proof. However, a number of consumers with no bank account also lack suitable identification.
- Over-spending. A quick cash advance from a cheque cashing service regularly leads to over-spending. Holding a large amount of cash can be too much of a temptation.
- Losing money. Consumers that use a quick cash advance to pay their household bills may lose money during the payment process. A lost cheque can be cancelled, but money is lost for good.
Consumers that regularly use a cheque cashing service because they have no bank account may be surprised to find out that they can open a basic bank account at all leading banks. However, those that can't afford to wait 4-5 working days may find that a quick cash advance from pawnbrokers, such as cash converters, helps them overcome short term money issues.
Those struggling with money issues and personal debt may be interested in finding out whether they have an illegal credit card or unenforceable loan agreement. Individuals that are struggling with serious debt problems may be able to write-off debt with an Individual Voluntary Arrangement.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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