To say that finance is important would be an understatement, especially in the personal sense. For example, not only do you probably have a debit card, but it's safe to assume that you use it on a routine basis. Many people trust this method of payment, as the likes of Robert Jain will attest, but not everything you read online is accurate. In fact, here are some misconceptions and accuracies that, hopefully, will help you become better aware of your finances.
"Unlike credit cards, debit cards lack reward programs." As reputable names in finance, Bob Jain included, will tell you, there are many debit card reward programs out there. Some will offer miles, which go a long way for those looking to fly. Others will provide cash back based on purchases made at specific locations. It's important to weigh these options carefully, as some will prove to be more valuable to you than others.
"If I choose one PIN, I don't need to change it." Just because you have a PIN that you can easily remember, while others can't, doesn't necessarily mean that it should be the only one you have. It's worth noting that your PIN should be changed every few months. There are many banks that require their clients to routinely update their information, mainly for security purposes. When it comes to finance, including debit accounts, one can't be too careful.
"Your credit score can go down if you don't use your debit card wisely." While it may seem like debit card usage can, to some degree or another, impact your credit score, this is simply untrue. In fact, any debit card activity will not be sent to your credit bureau. This can be just as much of a positive as a negative, though, particularly for those looking to boost their scores. Focus on lowering your credit card balance or paying off outstanding debts if you have a lower-than-desired score.
"It's safer to use a credit card than a debit card." When it comes to financial security, believe it or not, credit and debit cards are practically identical. Simply put, it's not inherently safer to use one method as opposed to another. In fact, they have similar security measures implemented, perhaps the most recent being EMV chips. When it comes to safety, as far as your bank account is concerned, one method isn't necessarily better than the other.
"Unlike credit cards, debit cards lack reward programs." As reputable names in finance, Bob Jain included, will tell you, there are many debit card reward programs out there. Some will offer miles, which go a long way for those looking to fly. Others will provide cash back based on purchases made at specific locations. It's important to weigh these options carefully, as some will prove to be more valuable to you than others.
"If I choose one PIN, I don't need to change it." Just because you have a PIN that you can easily remember, while others can't, doesn't necessarily mean that it should be the only one you have. It's worth noting that your PIN should be changed every few months. There are many banks that require their clients to routinely update their information, mainly for security purposes. When it comes to finance, including debit accounts, one can't be too careful.
"Your credit score can go down if you don't use your debit card wisely." While it may seem like debit card usage can, to some degree or another, impact your credit score, this is simply untrue. In fact, any debit card activity will not be sent to your credit bureau. This can be just as much of a positive as a negative, though, particularly for those looking to boost their scores. Focus on lowering your credit card balance or paying off outstanding debts if you have a lower-than-desired score.
"It's safer to use a credit card than a debit card." When it comes to financial security, believe it or not, credit and debit cards are practically identical. Simply put, it's not inherently safer to use one method as opposed to another. In fact, they have similar security measures implemented, perhaps the most recent being EMV chips. When it comes to safety, as far as your bank account is concerned, one method isn't necessarily better than the other.
About the Author:
For further info about credit and finance, in general, contact Bobby Jain today!. This article, Debit Card Misconceptions & Insights Shared By Robert Jain is available for free reprint.
No comments:
Post a Comment