5 Tips for Using Your Debit Card Like a Pro
Unlike credit cards, debit cards offer more financial security because you don’t fall yourself in the mystery of high-interest rates. Debit cards help you avoid racking up significant debt. However, if you fail to use them adequately, they can cause trouble for you. In today’s article, we will tell you how to use your debit card like a pro. Read on!
Know and change your spending habits
If you have bad money spending habits, such as losing receipts, balancing your checkbook, or getting hit overdraft charges, you need to change your bad spending habits. Don’t use your debit card every time you want to buy a thing or product that is not essential. Use your debit card when it is absolutely necessary. Debit cards are not like credit cards that act like a personal loan until you pay the money back.
Track your transactions
You can avoid bounced checks by keeping good records. Also, you can avoid stress and overdraft fees by using your credit card carefully and tracking your transactions. Experts say that it is essential that you keep track of your transactions, especially when you have a joint bank account.
Communication with your partner and bank staff is important. Ask the bank to provide you details of your transactions so that you can analyze how much you have spent and how much you should spend in the future.
Watch out for holds
Before you use your debit card to rent a car, make a hotel reservation, or even buy products or services online, make sure to find about any holds that will be placed on your account.
It is essential to figure out the amount and duration for which the bank will hold the funds. If you can pay the amount in full within a month, then you can use a credit card instead of a debit card to make hotel reservations or rent a car.
Besides, if you are traveling and do not have the balance so that you can cover the holds, you can buy dinner and have your debit card declined. Anyway, it is always a nice idea to keep an eye on holds.
Regularly check your account
You can go online and check your account daily. Experts recommend staying on top of all transactions to figure out immediately about unexpected holds, fees, fraud, or any other accidental double charges.
In particular, it is important with your debit card because if you lose money, it is your and not the bank’s money. According to federal law, your losses from any fraudulent activity on debit cards are limited to $50. However, this is when you notify the bank within 2-3 days of noticing the issue.
Carefully link your accounts
If you want to link your debit card with your savings or checking account, make sure you avoid exposing more money. Otherwise, you may become a victim of online fraud. There should always be a limit.
For instance, if you want to spend no more than $500 monthly using your debit card, make sure you ask the bank to limit the amount and do not add more than $500 from your checking or savings account.
|Thomas Moore is a proud American with a Bachelors Degree in Business Administration from the University of San Diego. He has seen many financial issues and hopes to help other people with their financial questions. He currently helps operate Cash King Loan Company and is our resident expert on all things finance and a great writer. LinkedIn Profile|