Are you looking for better ways to manage your money? Do you wonder what the different options are today?
The average credit card debt per household is more than 14 thousand dollars in the US. That’s one reason why many people use debit cards to manage their money.
What is the best debit card for smart money management? Here’s a guide to help you choose the one that will be right for you.
Debit or Credit Card?
When looking at money management tools, it’s good to understand the difference between debit vs. credit cards. Both debit and credit cards give you a secure way to make purchases without handling cash.
A debit card only allows you to make purchases up to the amount on the card, or the amount in your bank account, depending on the type of debit card you choose. One of the benefits of using a debit card is reducing the risk of overspending.
Virtual Debit Cards
One of the newest types of debit cards is the virtual debit card. They exist on your phone, not in plastic form like other debit cards. You create an account where you can add money to use in a similar way to a prepaid debit card. This company offers two types of virtual debit cards that you can use in various ways.
Most people use virtual cards to make online purchases, and they are easy to cancel if you don’t trust the website. The transaction doesn’t appear on any bank statement when you use a virtual card, so it’s more private than a regular debit card.
Prepaid Debit Cards
You don’t need a bank account to get a prepaid debit card. You load it with money and then use the card to make your purchases. They are convenient and easy to use.
Prepaid debit cards often have fees. The amount of money you put on the card limits the amount you can spend. These cards don’t build a credit history because you’re using your own money to buy things.
Regular Debit Cards
Unlike a prepaid debit card, you link a regular debit card to a bank account. That has some advantages. Different bank accounts come with varying features. You can use them at an ATM, and some cards will give you points or cash back for purchases.
Secured Credit Cards
These cards are similar in some ways to prepaid debit cards because you have to pay money before you can use the card. Secured credit cards are an excellent way to build credit if your credit is poor.
When you open an account, you make a cash deposit equal to the credit limit on the secured card. Using the card and paying the balance on time builds good credit history.
Find the Best Debit Card Today
When you understand the different types of debit cards available today, you’ll know how to find the best debit card to manage your money.
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