Reader Question: How do you feel about check cashing companies?
I’m not a big fan of check cashing companies. They’re not nearly as bad as payday lenders, but it still seems kind of silly to me there’s even a market for this kind of thing. If you want a place to cash your checks and store your money, all you have to do is walk into a bank and open an account.
I realize there’s a small segment of the population that some people in financial circles like to call “the unbanked.” This means that, for whatever reason, they avoid banks. That’s their choice, but in the process, they leave themselves susceptible to bad deals.
As I said, I don’t feel the same way about check-cashing companies as I do about payday lenders. But it’s still not a financially smart move to regularly pay a storefront operation fees just to cash your checks.