Money & Debt

You may find yourself needing to use a cashier’s check or a money order in one of the following situations:

• You’ve missed a rent payment and your lease says you must pay the rest of your payments through a cashier’s check
• You’re renting a new apartment and your landlord An owner of property who rents it out to a tenant asks for your deposit in the form of a cashier’s check
• You want to pay off debt at a collection agency and aren’t sure if you want to pay with a personal check or a money order
• You want to send money to a loved one overseas

Cashier’s checks and money orders have slight differences, both in how to get them and how to use them. 

Cashier’s check

You would usually use a cashier’s check if you’re making a transaction to another person. A cashier’s check is issued by a bank and backed by a bank. 

Some of the benefits of using a cashier’s check include:

• They are available in higher dollar amounts than money orders
• Are considered more secure than money orders

Some of the disadvantages of using a cashier’s check include:

• You need a bank account to get a cashier’s check
• The fee is more than a money order (usually about $5 to $10)
• You need enough funds in your account to cover the cashier’s check

How to get a cashier’s check

The only way to get a cashier’s check is through a bank or credit union. You usually need to be a customer at that bank or credit union to get one. Some online banks let you order a cashier’s check from your phone or computer. Otherwise, you may need to visit the bank or credit union in person to get a cashier’s check. To get a cashier’s check, you will need to:

1. Make sure there is enough money in your account to cover the amount for the cashier’s check. If you don’t have enough money in your account, you can bring the cash in person to deposit it into the account.
2. Bring a government issued photo ID
3. Bring the information needed to fill out the check (including the name of the person who you are making the cashier’s check out to)

Once you’ve done all of the steps above, the bank will print the cashier’s check. You will want to double check the cashier’s check to make sure all of the details are correct.  

Money Order

You would usually use a money order if you’re making a small transaction through the mail. A money order can usually be purchased at a:

• Check cashing store
• Post office
• Grocery store
• Your bank (but your bank may charge you more than the other places in this list)
• And many other places

This means that the place that you purchased the money order at is the one that is backing the money order. Some of the benefits to using a money order include:

• The fee is less than a cashier’s check (usually $1 to $2)
• You do not need a bank account to buy one
• They help protect your personal information

Some of the disadvantages of using a money order include:

• They are considered less secure than a cashier’s check
• They are usually limited to less than $1,000, and a limit of $700 for international money orders
• Most businesses will not let you buy a money order with a credit card. You will need a debit card or cash to buy a money order.

How does a money order protect my information?

While a money order will include your name and address, it doesn’t include information that, for example, a personal check might include. Money orders don’t include your bank account or routing number, which means you can protect your money against identity theft Wrongfully obtaining and using another person’s personal data. . 

Additionally, all money orders come with a receipt and a tracking number that you can keep for your records. A tracking number is also particularly useful if you are mailing the money order abroad. 

Why would I want to use a money order?

You might want to use a money order if:

• You’re sending money overseas
• You’re selling something valuable to another person
• You’re paying debts through the mail