4. How to Write and Cash Checks


Writing and receiving checks is a practice that is not as popular in the United States as it was before the electronic era, but it is still used by some companies, banks, credit unions, and individuals. Writing checks was the only way, other than paying cash, to pay bills in the past, but with the advent of the Internet and online banking, it is used sparingly today. Still, most lenders will accept written checks as payment for most bills.

Most companies pay their employees electronically today, but some still issue checks. Paychecks are issued either every week or every other week. In order for an employee to cash the check, he or she will need proper identification. Accepted IDs would be a state driver's license, or a state-issued identification card. People can go to any Department of Motor Vehicles in any state to acquire an ID. Once a person has an ID, he or she can go to a bank, credit union, or check-cashing business to cash their check. It is a simple process. The best thing to do is to open a checking or savings account at a bank where you plan to cash your checks. This way you can avoid charges from check-cashing businesses for their services.

Writing a check is easy, too. Once you have a checking account, and enough funds to cover your checks, you can use your checks at many retail outlets. Checks can also be used to pay back personal loans to friends or family. Remember, writing good checks that will not give the recipients trouble cashing can be to your advantage. Your reputation and credit rating can be established or damaged depending on how good your checks are. One of the worst things you can do is to write checks when you do not have the funds to cover them. Be responsible, not to write bad checks.

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