At O1ne Mortgage, we prioritize educating our clients about various financial tools and services. One such tool is the money order, a secure and reliable method of payment. In this article, we will explore what money orders are, where you can buy them, and the best practices for purchasing them. If you have any mortgage service needs, feel free to call us at 213-732-3074.

What Is a Money Order?

A money order is a paper document, similar to a check, used for making secure payments. Unlike personal checks, money orders are prepaid, ensuring that the recipient is guaranteed the payment. This makes them a preferred option for individuals who do not have a checking account or those who want to avoid sharing their banking information.

Money orders are particularly useful for sending money overseas or when you are concerned about the security of mailing a check. They do not contain any personal information that could lead to identity theft, making them a safer alternative.

Where Can You Buy a Money Order?

Money orders can be purchased at various locations, including:

• U.S. post office branches, including military post offices
• Banks and credit unions
• Retail locations such as Walmart, supermarkets, convenience stores, and drugstores
• Check-cashing stores

Before heading out to buy a money order, it is advisable to check the following:

• Identification requirements
• Accepted forms of payment
• Limitations on amounts
• Fees, which generally range from less than $1 to $5

Note that not all locations handle international money orders, so it is essential to verify this if you need to send money abroad.

Can You Pay for a Money Order With a Credit Card?

Typically, money orders can only be purchased using cash or a debit card. In the past, some locations like Western Union and 7-Eleven accepted credit card payments for money orders, but this is no longer the case. Personal checks are also not accepted for purchasing money orders.

If you do not have the cash on hand, you might consider getting a credit card cash advance. However, this option can be costly and is generally not recommended.

Should You Buy a Money Order With a Credit Card?

Using a credit card cash advance to buy a money order is not advisable for several reasons:

• The annual percentage rate (APR) for cash advances is usually higher than for regular purchases.
• There is typically a fee for cash advances, which can be a flat rate or a percentage of the amount.
• A cash advance can negatively impact your credit score by increasing your credit utilization ratio.
• Interest on cash advances begins accruing immediately, unlike regular purchases that have a grace period.
• If you already have a balance on your credit card, payments may be applied to your purchase balance before your cash advance balance, making it harder to pay off.

For more details on the terms and fees associated with cash advances, refer to your credit card agreement or contact your credit card issuer.

The Bottom Line

Money orders are a secure way to make payments or transfer funds. However, there are more convenient options available, such as personal checks, payment apps like Zelle, PayPal, or Venmo, and wire or online bank transfers.

Purchasing a money order with cash will not affect your credit score, but using a credit card to buy one could lower your score if it increases your credit utilization. Regularly monitoring your credit report can help you spot potential risks and take steps to resolve them.

For any mortgage service needs, O1ne Mortgage is here to help. Call us at 213-732-3074 to speak with one of our experts today.