What is the effect of Circlet of Persuasion?

I am unsure of how Circlet of Persuasion is suppose to work, specifically what checks it applies to.

It reads as

This delicately engraved silver headband grants its wearer a +3 competence bonus on Charisma-based checks.

Does this apply to charisma based skill checks or just charisma ability checks, just like breaking something is a strength check.

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