“How do I write a check to myself with no money in my bank account?” That’s a great question and many people wonder the same thing. Not long ago, most people could write a check themselves for their own funds at their bank account. In fact, it was a way to keep your funds in your account by using your tax refund as the source of your funds. Of course, since that time the IRS has changed the rules and now you need to have some other form of liquid cash to use to write a check to yourself for your personal funds.
So now we need to find some other way to get our funds. Some people have turned to writing out checks from their home computer. However, this can be quite risky because if the computer crashes, there is no record of what was written or when. Then if you want to pay yourself, you have to go back to the ATM to withdraw the cash. It can be a hassle and can lead to bad feelings between you and your bank. So what other options are available?
One option is to use what is called a “signature line”. When you write a check this way, you can write a check to yourself with no money in your account the exact amount of the cash amount you wrote out – but you don’t write out the signature line until your money goes in. So if your computer crashed, you wouldn’t be able to write a check for yourself until you got your funds in. This can be a problem if you are like most people and write a lot of checks.
Another option is to write a check payable to someone else. Here you would only have to write a check payable to yourself. The cash goes to the person or company that you write a check payable to, and then they pay you the money directly.
You can also use a “signature line” with your check payable to another person or company. Again, write the check payable to yourself. This time, write the check payable to someone else. You would use a separate bank account than the one you normally use to write checks. Then when you get the funds in your new bank account, you would put the check the signature line.
If you need more than your funds are in your bank account, you may consider taking out a small loan. Most banks won’t let you write more money into your account unless you have an open checking account with them. So if you have some extra cash that you need, consider taking out a short-term loan. The cash will go into your checking account. If you pay the loan back with the additional funds, the bank might not penalize you for having more cash in your account than you have in your bank.