Trouble Getting Approved But Want A Card? Debit Cards May Be For You
Those that have trouble getting approved for a line of credit can consider the benefits of using a debit card instead. Today, the world bases every purchase on the credit card. The fact is that fast food restaurants and even your dollar stores are now credit card capable. In some cases, such as making purchases online, you have to have a credit card to make the purchase at all. For those that don’t qualify for a line of credit, though, this can be a problem. How can you go about daily life without having that famous MasterCard or Visa logo?
If you don’t qualify for a credit card, you may be able to secure a debit card. A debit card is a completely different thing, though. For those that are searching for credit benefits, you won’t find them here. A debit card is connected to your checking or savings account. Usually, your bank will issue them to you. When you make a purchase using a debit card, you will be drawing funds that come directly from your bank account. In essence, the debit card is the same as writing a check. The only difference is that the process is faster and there is no paper in the process.
In addition, the debit card can provide you with fewer fees than checks do. There are generally two ways to use a debit card. In some cases, you will have no option but to have a card that draws on your checking account without using the MasterCard or Visa logo. In this case, the bank will usually charge a fee for using the card. In this regard, it is like the same fee that is charged to your account when you withdraw funds through an ATM (your bank may be different!) You usually will use a pin number here. Or, if you do have the credit card logos on your debit card, you can easily swipe them just as you would a standard card. Without a pin number attached to them, there are generally no fees to using this method (again, your bank may be different.) Just remember, you are using cash for your purchases here, not credit.
Using Cash Is Too Hard
Many people believe that using a cash only way of life is too hard. But, stop for a moment and consider this. How much are you paying on your current credit cards that are not direct purchase but are interest charges? Those interest rates and fees add up and cost you significantly. If you move to a cash only system, you will quickly see the savings that you will have. For many people, they quickly find that they have more money when they don’t use credit but instead turn to debit cards instead.
Tips For Using A Debit Card Wisely
Just because you have a debit card doesn’t mean you realize the problems that could lurk behind using it. Here are some tips to keep you in the clear.
- Secure a debit card that has a logo on it for MasterCard or Visa (or some other choice if you like.) This saves you countless fees over the lifetime of use of your debit card. Most major banking institutions will provide this without cost to you when you open a checking or savings account. In many areas, it has become standard practice even.
- Whenever you use your debit card, write the transaction down immediately in your check book register. This will keep you from overdrawing on your account, and save you many over drawn fees. To make sure this happens, place your debit card in the check book register so that you never have to remember what to write down.
- Reconcile your check book register with your bank statement every single month to know what is being charged. Compare your receipts to the actual charge made to your account. This is important to catch any mistakes in the process. Most banks now provide online account access which will allow you to do this more often and give you a constant clear picture of what is happening in your account daily. In fact, choose a bank that offers this service without cost to you.
A debit card is a great tool to have even if you do qualify for a credit card. You want to insure that cash is your priority when it comes to securing funds for a purchase because this will allow you to stay within your means. In addition, take the time to find out what your bank offers and work within their parameters to keep yourself out of fee trouble. |
