If you’re wondering how to cash a check without using a bank account, rest assured that you’re not alone. Statistics show that around a quarter of US households either don’t have a bank account, or regularly use an alternative means of check cashing.
So, if you’re new to this process, you’ll be glad to know that you have options. However, it’s important to understand the nature of these options in order to get the best deal and avoid scams.
With that in mind, it’s important to read on so you can learn all about how to get your hands on your money by cashing a check without having to set up a bank account.
Personal Check Cashing Services
Companies offering personal check cashing are often the first port of call in a situation like this.
As personal checks are seen as risky, these companies will charge fees for the cashing of your check. They will also take certain measures to verify your check, such as contacting the issuing bank.
The Issuing Bank
The issuing bank is the bank that gave out your check in the first place. The name of this bank will be written on the check.
Banks will usually cash checks that they have issued themselves. However, if you are not a customer of the issuing bank, you may face a check cashing fee. The amount will vary from bank to bank, and may be charged as a flat fee or a percentage of the check’s value.
A Check-Cashing Retailer
You don’t necessarily need to go to a financial institution to have your check cashed. Many ordinary retailers provide the service.
These retailers include a number of supermarket chains, most notably Walmart. However, you will also face fees if you choose to cash your check in this way.
Again, the method of calculating these fees will vary depending on the store and the amount on the check. There is also likely to be an upper limit on the size of check that the retailer will clear for you.
Endorsing the Check to a Friend
If you would prefer to avoid dealing with any sort of institution, you can cash a check through a process known as “endorsing,” which involves passing the check along to a friend or family member.
This is done by signing your name on the check, and indicating that it is to be paid to your friend. For this to work, your friend will need a bank account.
This method avoids all fees and expenses entirely. However, it is only possible with a close friend that is trustworthy.
So, What Should I Do With My Check?
The options above are the easiest and cheapest avenues for those wondering how to cash a check without a bank account. While a bank account probably makes the process a little more convenient, it definitely isn’t a necessity. so pick the option that works best for you, and enjoy spending your money!
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