To many, paper checks seem to be a thing of the past. Who still uses paper checks in their day-to-day life during this modern time? Today, there are many adults that have never used a check in their life. However, there may come a time where you must write a paper check. If you are going to use a paper check, it is important to make sure you use it safely. You do not want your check to end up lost or in the wrong hands, so make sure you are following these tips, so you do not find yourself in a position you did not intend.
Know When to Not Use a Check
You may need to use a check at a certain shop that does not accept credit cards. Or perhaps, you want to give your family member a little extra cash for a holiday. If you need a payment to come out of your bank account more quickly than others, then a check is not for you. It may take around two to three days to see the funds leave your account. This can make it a bit harder for you to track each payment. Tracking each payment you make is important for your financial health. If possible, try to use other appropriate methods. It will help you see the expense taken out of your account right away.
There are alternatives to checks. Are you thinking about using a check while you wait for funds to appear in your account? If you are low on cash now, you could always apply for credit or a small personal loan. That way you have money in your account and can even withdrawal cash if need be. A loan might be a better option for you. Before you settle on a loan provider, you will want to do a little research first. You will want to make sure you have chosen the right payday lender and understand how you can make a payment when it is due. For more on how to choose the right payday lender, check out this website.
Track Important Payments
More times than not we use checks for bigger payments. We use them for things like college tuition, rent or even a down payment on a house. By using a check, this can help you prevent any late fees since the transaction of the paper check will be added within the proper amount of time. It will also allow you to track all these bigger purchases in one spot. You can track these bigger purchases in the checkbook. When you are using multiple different credit cards and bank accounts, keeping track of your payments can get confusing if you do not have a proper recording system. We suggest implementing a proper budget tracking system. However, if you do not have one, using paper checks will help keep it all in one spot.
Importance of Using a Check the Right Way
You may have forgotten about the importance of writing a check the right way. This includes leaving no space for someone else to add an extra zero to the end of your payment. When writing a check, include the name of the person that gets the check. It helps prevent others from taking the check themselves. Write out the full amount with a decimal and the cents place so that no one can add an extra zero or two at the end. You could have a $50 check that ends up paying someone $500 or even $5,000! When writing the date, write out the full year, rather than just the last two numbers. Use black ink when writing to ensure that the check is more resistant to being washed. These recommendations may sound elementary, but too easily we forget about the basics. When we forget about the basics like these, we allow thieves to get ahold of the check to make that check benefit themselves.
Are you writing checks today? Even in the 2020s, youll likely find yourself in a situation where you have to write a check. It is important to know how to do so properly, especially if you have never written one before. For more information on properly filling out a check, you can go here: https://www.thebalance.com/how-to-write-a-check-4019395. They have a helpful graphic that shows what each section is for. Hopefully, this guide will help you if you do find yourself in a situation where you need to write a check. Now you know when to use checks, when not to use checks and how to use them safely.