One common question when it comes to money orders! Can you buy money order with credit card? Read on to find out.
If you are looking for the safest way to send money via mail, money orders are the way to go. Also, in companies with limited payment options, money orders are excellent modes of payment. But, one question is constantly in many people’s minds; can you buy money order with credit card?
The answer is yes, but it is not that simple. Only limited sellers allow you to use your credit card to buy a money order. And even here, it can be quite expensive.
When using a credit card to buy a money order you have to pay the associated interest rate making the whole transaction more expensive than it ought to be. However, if you still feel like using a credit card, you can do that by using specified sellers.
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Where Can you get a Money Order with a Credit Card?
There are currently two places where you can buy a money order with a credit card; 7-Eleven stores and Western Union. Usually, when your money order is charged on a credit card, the transaction is treated as a cash advance.
This means that you will be charged all the interests that come with a cash advance. And, you will also be doing injustice to your credit score.
Buying a money order cash is not more than $5, but the cost of buying one with a credit card can be more than $20.
Reasons to Use a Money Order
1. Guaranteed Payment to the Recipient
A money order guarantees payment to the recipient. It is different from a check that is likely to bounce due to insufficient funds or any other reasons.
The only way for the recipient to be guaranteed receiving money is to get paid through a money order. All the recipient has to do is to go and cash it.
2. Can be Cashed in Different Locations
One of the primary reasons people use money orders is that they can be cashed in a variety of locations. This includes banks, post offices, and even some grocery stores.
If you need to cash a check but don’t have a bank account, a money order may be your best bet.
3. Safe Form of Payment
Using a money order is a safer form of payment compared to cash. The money order must be cashed by the recipient, and they must bring out their identification when cashing out.
This makes it a safer form of payment because you are less likely to send money to scammers compared to using cash.
Downsides of Using a Money Order
Unfortunately, using a money order is not always ideal. One of the biggest disadvantages is that they can be difficult to track. If you lose a money order or it’s stolen, you may have a hard time getting your money back.
Additionally, money orders typically come with a fee, which isn’t usually cheap.
Lastly, it has a limit of $1,000. So, it might not be the best choice when sending more than $1000 to a recipient.
Is Buying a Money Order with a Credit Card Worth It?
Buying a money order with a credit card is not a wise financial decision. The process ends up being expensive, and it even affects your credit score.
Here are some reasons why you should not use a credit card to buy a money order:
1. Very Pricey
Someone may ask; Can I buy a money order with a credit card? Well, yes, you can. But it’s not cheap!
Buying a money order with a credit card is an expensive affair. This is because it’s treated as a cash advance, so it attracts all the cash advance charges.
The truth is, taking a cash advance with a credit card is expensive. So, if you can avoid it, the better.
2. High-interest Rates
If something happens and you are not able to pay for the cash advance immediately, the interest rate can be insanely high. Unlike making a cash purchase with your credit card, a money order accrues different kinds of fees, and the interest rates can be very high.
If you are not able to pay for it immediately, you can ruin your credit score because of that one transaction.
3. No Grace Period
When you use your credit card to make cash purchases, you are given a grace period of 21 days because interests start accumulating.
With a money order, it is different. It will attract interest from day one, just like a cash advance. If you are not careful, the interest rates can become very difficult to manage.
4. Detrimental to your Credit Score
Messing up your credit score can happen very fast when you use your credit card to purchase a money order. It is easy to land into debt if you cannot manage the interest rates accrued by the credit card purchase of the money order.
The combination of high-interest rates and the lack of a grace period can make paying back the money an uphill task. Subsequently, this will land you in debt, which may affect your credit score.
See related: How to Build Credit without a Credit Card: 6 Best Ways
Can you Buy Money Order with Credit Card? Best Alternatives
Using a money order has its place in society. It is a great alternative to sending cash in envelopes, and it is also a good method to avoid the banking structure.
However, there are other great alternatives that you can use instead of buying a money order with a credit card:
If you’re looking for a way to buy money orders with a credit card, there are a few alternatives. One option is to use a service like PayPal. This allows you to pay for items online without having to type in your credit card information each time.
Another option is to use a prepaid debit card. This is a good option if you want to keep your spending in check, as it limits how much money you can spend.
And lastly, you can use cash, which of one of the easiest ways.
Whatever option you choose, make sure you do your research first! For instance, there are a number of different prepaid debit card accounts out there, so take the time to find out which is the best for that task.
When purchasing a money order, make sure that you fill it out correctly. Verify the recipient’s details and make sure that they are the ones to receive money. We still have money order scams, so you need to be careful so that the money does not go to someone else.