When you don’t have a checking or savings account, it can be difficult to turn your check into cash. Most banks charge a substantial fee for cashing a check when you don’t have an account with that branch, and if the check is from out-of-state, the situation becomes even more difficult. If you don’t have a checking or savings account, here are a few ways you can turn your check into cash.
Visit the Bank
Some banks, such as Wells Fargo and Washington Mutual, won’t charge you a fee if the check was drawn on an account at that bank. Check the name of the bank on the check and call to find out if they waive their fee. Keep in mind, however, that checks over a certain amount (i.e. $500 at Bank of America) will be charged a fee regardless.
Sometimes the fee is a flat amount, such as $5.00 per check, but they sometimes charge a percentage of the amount of the check. Make sure you are clear on all fees before signing over the money.
Try Gas Stations
Some gas stations, bodegas and convenience stores offer check-cashing services with smaller fees than banking institutions. Some will only cash a business check, but you can find out if there are any in your area by looking for “Check Cashing” signs in the windows. This usually requires at least one form of identification, and make sure you know what the fee is before you cash the check.
Use Payday Loan Centers
Some institutions, such as Ace Cash Express and Nix Check Cashing, will turn your check into cash for a small fee. This is a great way to do business if you think you might need a short-term loan in the future, because the payday loan center will have your paycheck history in their computers.
Try the Grocery Store
Grocery stores, such as H.E.B., Randall’s and Kroger, offer check-cashing services. Kroger and Randall’s, for example, will cash paychecks as long as you have a membership with the store, while H.E.B. doesn’t require any such membership. Contact your local grocery stores and supermarkets to find out the requirements for cashing your check.
Sign It Over
Most banks will allow you to sign a check over to a friend or relative with a bank account. If you can’t find any other way to turn your check into cash, this might be the way to go. Simply take the check and two forms of identification with your friend or relative to the bank, and then sign the back of the check in front of the teller. The check will be deposited in your friend or relative’s account, and he or she can give you cash in turn.
Open an Account
If you are ready to turn all future checks into cash, you can use the funds from the check in your hand to open a bank account. Most large banks require only a minimal opening deposit to start a free checking account (only a dollar at Washington Mutual!), and it will help you establish yourself financially.
Beware Scams
Many predatory institutions–particularly those on the Internet–prey on people without checking or savings accounts. Before you attempt to turn your check into cash, make sure to check out the reputation of any business you might be dealing with. Never turn your check over unless you are confident in their business practices, and report any instances of fraud to the FTC (Federal Trade Commission).
