a guide to making payments

Like it’s not hard enough to decide what to buy and where to buy it, you also have to decide how you want to buy something. Debit or credit, check or cash. Turns out, managing your money and your payment methods can be stressful. And not to mention the fraud. Let’s say you don’t want to go to the cashier and you forgot your checkbook. We are going to focus on debit and credit as that is how you shop most anyway. How do you know what to do? There are many benefits to both forms of payment, you just have to know what the advantages are and when they are convenient for you. Ready to be a smart shopper? Here are some points to consider to get the most bang for your buck and with the most protection when you pay.

1. Paying with a credit card can help your credit score

When it comes to loading cards, one of the fastest ways to improve your credit score is to use your credit card and then pay your balance on time each month. It seems obvious, if you pay your bills, you will be rewarded with good credit. But some think that if they don’t use the credit card, it will be better. It is not like this. The more you use your credit card (within reason), the better your credit will be. Make sure you are spending within your means.

2. Paying with a debit card is a great way to track your expenses.


Do you ever look in your wallet and realize you have $ 3, a dry cleaning bill, and nothing else? What happened with the money? We assume he went to Dunkin ‘Donuts or happy hour. It is difficult to track expenses when you are handing out dollar bills. Using a debit card is an alternative to cash and it’s easier to track your expenses. Many debit cards have online apps and tools to help you keep track of your expenses and set a budget.

3. It’s safer to buy high-priced items with a credit card

It makes more sense to use a credit card for large purchases like electronics (that is, that big screen TV you’ve been dreaming of). Not only will you have added security protecting your purchase, but you can also earn points or rewards for the money you spent.

4. Use credit cards to pay for car rentals


Many credit card companies offer a level of insurance to cardholders when renting a car. We’re not saying you should drive like crazy, but you could benefit from collision protection.

5. Use your credit card when booking your trip

It’s a good idea to use your credit card for travel expenses, and as an added incentive, many credit card companies offer concierge services to help you book your flights and hotels.

6. Use your debit card to pay recurring bills


When it comes to loading cards, debit cards are a great option for recurring bill payments (think cell phone, cable, etc.) because you can set up automatic payments that take money directly from your bank account.

7. Use your credit card for deposits

When making a deposit on a purchase, you must use their credit card. If the product does not arrive correctly, you will have a certain level of protection.

8. Don’t use your debit card for online payments

A person paying on the internet with a debit card

Never, repeat never, use your debit card for online purchases. Your debit card is linked to your bank account, so when you enter your debit card information (including your pin) all of your bank account information is vulnerable to theft, fraud or identity. It is not worth the risk. Limit your debit card to personal transactions.

9. Use your credit card on vacation

While traveling, credit cards are the safest form of payment because they offer the highest level of consumer protection. It’s easier to replace a stolen credit card than a debit card, and payments don’t come directly from your bank account.

10. Use your credit card to make small daily purchases

A person paying for a service with a debit card

You don’t need to limit your credit card use to large purchases. In fact, the more you use your credit card, the more rewards you will acquire. You can build up good credit just by using your credit card to buy everyday items like gas, food, and coffee. There’s nothing like booking a free vacation using points earned from your daily trips to Starbucks. #winning

11. Use your credit card to pay medical copays

Have you paid a medical bill and then persistently received bills for services that you have already paid for? It happens, it is annoying and it is avoidable. If you use your credit card, you will have a guarantee and proof that you have made the payment. Problem solved.

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