They’re one of the biggest expenses in your budget, and they’re not going away anytime soon. Therefore, it’s important to choose wisely when it comes to your bank credit cards or debit cards.
Your Credit Card May be Your Best Money Management Tool
It’s important to know the difference between bank credit cards and debit cards. Both can be used for shopping and both have their pros and cons. But when it comes to money management, credit cards are better than debit cards.
Unlike a debit card, you don’t need to worry about checking your balance before making a purchase with a credit card. And with an interest-free introductory period of as long as 24 months, you’re not charged interest until after the promotional period ends.
Furthermore, if you use your credit card responsibly by paying off your balance each month and keeping spending within your limit (and you should!), then you will save money in other ways. You won’t need to pay overdraft fees or surcharges when using a cash machine or traveling abroad because you’ll only spend what is in your account – not more!
Banks Offer Perks You Can’t Get With Debit Cards
Most people use debit cards for the same reasons they use credit cards: to make purchases and get cash back or rewards. But did you know that banks offer credit cards with perks that you can’t get with debit cards? Here are a few reasons why bank credit cards are better than debit cards:
- With a credit card, you can get rewards like cash back or points that can be used for travel.
- Credit cards often have sign-up bonuses, which can give you a nice chunk of change if you meet the spending requirements.
- You can also take advantage of 0% APR periods, which can help you save money on interest if you need to carry a balance for a few months.
Bank Rewards Programs Are Even Better Than Retail Store Rewards Programs
It’s no secret that credit cards offer rewards for spending. But what you may not know is that bank credit cards typically offer better rewards than retail store credit cards.
That’s because bank rewards programs are designed to encourage customers to use their credit card for all of their purchases, both big and small. And the more you use your credit card, the more points or cash back you’ll earn.
What to Look for in a Wallet-Friendly Reward Program?
When you’re looking for a credit card, the interest rate is important, but so is the rewards program. You want a card that gives you points for every dollar you spend, and that doesn’t have an annual fee.
Look for a program that offers bonuses for signing up and spending in certain categories. And make sure the card is accepted everywhere you want to use it.
