Motley Fool: Give Credit Card Cheques The Chop

This morning my new credit card provider kindly sent me a couple of credit card cheques ‘in case they’ll come in handy’. At least this lot didn’t come with the usual earnest attempt to persuade me to ‘treat’ myself, which is what my last card provider always urged me to do. I fed so many of the damn things through my shredder that it almost went into overdrive!

And that’s what you should do with credit card cheques. Shred them! They’re among the most expensive ways of borrowing. Usually, you pay interest immediately on what you’re borrowed, the interest rate is normally very high and then there’s the handling fee of around 2-3%. And don’t forget the penalty charges if you write a cheque that takes you over your credit card limit….

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