Hello friends, college friends especially! Joining the college clan? That probably means you have or will be needing a bank account! And with that comes the shiny plastic that holds the moola. So today, i would like to let you in on debit card and credit card: similarities, differences, and which one you need for what uses.
So, let's get started!
What is a Credit card?
A credit card is a bank issued card that is a lot like the bank loaning you money. You swipe the card to 'purchase' whatever it is -that hot blouse, that even hotter Taco Bell order- and then you pay the bank back typically within a month. (This 'grace period' as it is called depends on your bank).What is a Credit Card Good For?
A credit card is a positive if you want to make a larger purchase and pay it back in small sums. For example, if you are purchasing a refrigerator with a credit card. You can pay it back in those small amounts. Some credit cards also provide rewards as an incentive to use them instead of cash or a debit card.
A credit card is great for building credit as well.
Credit Card Tips
As great as it sounds, you have to be careful! Interest will build up and can bury you deeper than that original price tag would have if you take too long to return the money.Also, do not spend more than you will be able to pay off! In many cases, people will look at a credit card as buying whatever they want, whenever they want. But, you have to budget just as you would without a credit card. Side note: That credit card statement can make budgeting easier.
Finally, for a credit card, check out those interest rates! Those can be quite the make it or break it feature.
What is a Debit Card?
A debit card is a card that in a way stores your money, but within the card. The card is linked to your account and whenever you use the card, the money is deducted from your account balance.This is a great tool for keeping from spending more than you have and it's like one big wad of cash smooshed into a card instead of the cash cluttering your bag or wallet!
What is a Debit Card Good For?
A debit card, as mentioned before, can be great for spending only what you have. This can keep you within your budget.
Over a check or a credit card, they are a quicker way to check out. Swipe, possible pin, complete!
Debit cards can also be easier to get than a credit card.
Although, with debit cards, rewards are not an option, penalties for having too low of a balance and monthly service charges are possibilities.
Debit Card Tips
Debit cards can be great for staying in your spending range and for avoiding too much hassle at the register. But, fraud is not as easy to deal with. With a debit card, your account can be emptied. Whereas with credit cards, there is credit card fraud protection.
Debit cards are great tools to carrying around instead of dollar bills and at most stores, you can get cash back.
Just be careful to create a pin and keep it secret!
Credit cards and debit cards have their pros and cons. Both are great tools to spending if used correctly.
Want more information? Visit your local bank and ask questions!
Thank you guys so much for reading and I cannot wait for your company again!
Until next time, check out my social media.
Bye!
Check out this information page for more info on debit versus credit cards.
Post inspired by Credit Card Insider.
