Can You Buy A Money Order With Credit Card
Money orders are a safe way to send money to friends and family members. Credit cards can be used to buy money orders, but it’s hard to find businesses that let customers use their cards. Merchants usually want customers to use cash or a debit card to make sure the money order is worth what they say it is because using a credit card carries a lot of risk and costs a lot of money. Know if you Can Buy A Money Order With Credit Card in this article.
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Meaning
A money order is a paper form of payment that looks a lot like a check. People use money orders instead of checks or cash when they want more security and tracking. A money order’s purchased amount is guaranteed, which means the buyer must pay for the money order in full from a retailer or merchant before the money order can be used. The order must be made out to a person or business who will get the paper and be able to cash it at a different place with ID.
Can You Buy A Money Order With Credit Card?
Credit cards are useful for everyday purchases, but it’s not likely that you can use one to buy a money order. It’s always better to think about using cash or a debit card first before using a credit card to buy money orders from a lot of stores.
Make sure that you know what your credit card company is going to do if a store lets you buy money orders with your credit card. Many people aren’t happy with this.
* Cash advances are more expensive than normal purchases, so they cost more. Cash advances usually have higher annual percentage rates (APRs) than other types of purchases. Besides that, they also have to pay a fee, which is usually 5% of the total advance or $10. Interest on cash advances starts right away, unlike with regular purchases that have a grace period. Many times, cash advances don’t count toward rewards, welcome bonuses, or other points that you get when you buy something. If a cardholder wants to make a dent in their minimum spend for a welcome bonus, taking out a cash advance won’t help them do that. Cardholders are at risk of having their credit utilization rate go up. Cash advances have interest start to accrue right away, which means that there’s a good chance that the cardholder will end up owing a lot of money before they can pay it back. It is best to keep your credit utilization rate below 30%. Interest fees are added to this figure. Cardholders can quickly get into debt if they don’t pay back the cash advance as soon as they can. It might not be worth it to pay the minimum balance every month if you want a cash advance. It is up to the card issuer to apply a cardholder’s monthly payment in the way that makes sense for them to do. They may use their monthly payments to pay for things that have a lower interest rate. This makes it more difficult to pay off a cash advance (and the rest of the card’s balance) in the long run, because interest builds up quickly, which makes it more difficult.
how to buy money order with credit card
If you want to pay for something with a money order, there aren’t any businesses that accept credit cards. Do Western Union and 7-Eleven still? Then, you’ll need to get cash from your credit card at an ATM or a bank branch, or through a convenience check linked to your account.
You can get cash from your credit card line of credit with a cash advance. Maggie Germano is the founder and CEO of Washington-based Maggie Germano Financial Coaching. When you get a cash advance, there may be extra fees and interest rates, she says.
Using Money Orders the Right Way
A money order can be a safe way to exchange and send cash. You should know how they work, as well as all of the risks and limitations they have. Even though some credit card companies let you buy a money order with your credit card, many credit card companies think this is a cash advance and may charge you extra fees and charge you a lot of interest if you do. Credit cards should be your last choice when you need to buy a money order for some reason.
Can You Buy A Money Order With Credit Card: Conclusion
Money orders are usually better to buy with cash or a debit card than with a credit card, even though many stores accept credit cards for money orders. It doesn’t matter that most stores don’t accept credit cards for money order purchases anyway. If you need to use your credit card at Western Union to buy a money order, you can, but you should only do this if you have no other choice.
People who use a credit card to buy money orders are likely to get into debt if they don’t pay off their cash advance quickly enough. Interest starts to build up the day after you buy something, and it’s usually at a higher rate than for normal purchases. Over time, this could hurt your credit score. Take care not to use more credit than you should.
