Cash is king, but for many Americans, that saying is looking more and more old-fashioned. 30% of American adults don’t make a single cash transaction in a given week and that number is only expected to increase.
Debit cards make it easy to live life without cash in your pocket. Many people have them, and they’re linked directly to a bank account.
Even though plenty of people are swiping these cards every day, they might not understand the full extent of the benefits of debit cards.
Read on to learn five ways using a debit card can make your life easier.
1. No Credit Check
Credit cards offer the convenience of a cashless transaction, but they require an application that involves are credit check. This can affect your credit score and some prefer to avoid that. Others may find they don’t possess a qualifying credit score.
On the other hand, your bank will issue you a debit card as soon as you open a new account. All you need is a minimum deposit and you’ll be up and running.
2. Simple to Use
Once your bank account is set up, you’re free to use your debit card for any purchase where cards are accepted. You need to have the funds in your account to cover the cost, but that’s much easier than carrying around a significant amount of cash.
The transaction will process instantly and the amount is taken from your bank account immediately.
3. Security
Secure purchases are one of the best reasons to use a debit card. With a debit card, you’ll set up a Personal Identification Number (PIN) and use this four-digit code whenever you make a purchase with a debit card. This protects you in the event you lose your debit card. If someone finds your card, they won’t know the PIN and won’t be able to make a purchase.
Virtual debit cards are even safer. They can be turned on and off in real-time, keeping you safe from fraud. For more information, take a look at these virtual cards.
4. Avoid Fees
Credit cards are infamous for the number of fees attached to their use. They have fees for late payments, annual fees, and interest rates. All of this can quickly add up.
With a debit card, you’ll avoid almost all of those. There’s no monthly payment to make and they’ll never have an interest rate. This is one of the major advantages of debit cards.
5. Helps You Budget
Most banks support a mobile app that allows you to view your account balance up to the minute. Since a transaction amount is immediately deducted from your bank account, you’ll be able to see exactly how much is in the account at a given time.
This helps you stick to your budget or amend your budget should an emergency occur.
The Many Benefits of Debit Cards
Debit cards are an amazing tool. They’re much more convenient than carrying cash, are easy to get, and have virtually no fees attached to them.
Helping you budget your money and requiring a PIN for secure transactions are other benefits of debit cards.
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