What Is a Live Check?

If you’ve ever received a check in the mail that looks authentic but aren’t sure why you received it or what it is, it is most likely a live check. 

Live checks are pre-approved loans mailed to people that meet certain criteria set forth by the lender. Companies can ask the credit bureaus for a list of consumers that adhere to a specific profile or list of criteria.

Why do companies send Live Checks?

Companies that send out live checks may be looking for a specific type of new customer, or may be soliciting previous customers to come back. For example, if you’ve proven your creditworthiness in the past, you may receive a live check because you are viewed as a good customer. Companies may send out live checks more frequently during periods when consumer spending increases, such as the holidays.

What happens if you cash the check?

If you decide to cash the check, you’ll enter into a financial agreement with the lender. Since cashing the check is equivalent to opening a loan, you will have to make payments based on the terms in the agreement until the loan is satisfied.

What if you need more, or less money than what the check is for?

Another option is to visit the issuing office. They can determine what amounts you may qualify for and provide different choices.

Overall, it is most important to understand that you will need to work this payment into your budget. Remember, one reason you probably received the live check is you’ve shown you are a dependable customer. Live checks can be a benefit when you know what they are, and understand what is required once one is cashed or deposited.

Want more resources regarding this topic? We've created a page called Personal Loan Basics to provide you with more information.