How to Manage Finances with Debit and Credit Cards
(Baonghean.vn) - To maximize the benefits of credit cards and debit cards, you should spend time learning how to use them; especially when to use these two types of cards for payment? If you know how to coordinate the two types of cards smoothly during use, your finances will be managed closely and scientifically.
1. Benefitsfrom credit card
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* A credit card is a type of payment card that the cardholder can use to pay for purchases of goods and services. If you know how to use it, users can spend wisely and enjoy attractive services exclusively for cardholders. Here are some situations where you should choose a credit card:
- Improve credit score:If you want to improve your credit score with the bank, using a credit card is one of the great suggestions for you.
- If your current credit score is lower than you would like, using a credit card can help increase it. Debit card payments do not count toward your credit score.
- Using a credit card and paying it in full and on time each month will help you establish a good credit history, which will increase your score.
- Accumulate bonus points:Many cardholders plan to accumulate reward points to receive gifts or attractive promotions.
- Using a credit card to pay for purchases and recurring household expenses can be a smart way to supplement your income.
- - Buy products with large amounts of money:Some credit cards offer extended warranties beyond those offered by manufacturers or retailers. For example, using this card to buy a television, refrigerator, or air conditioner will automatically give you this insurance package.
- - Online shopping:If you buy online, you are taking a bit of a risk because you cannot check the actual product until it is delivered a few days later.
- Using a credit card to shop online will protect you in case the item arrives damaged, incorrect or lost in transit (Negotiate with the seller to resolve the situation or ask your card issuing bank to place a payment hold).
- Travel, work: Credit cards will be quite useful for these services because credit cards are associated with banks with preferential discounts at many locations.
If you use a debit card, they will place a "hold" on your funds, which is a deposit. Until the hold is cleared, you will no longer have access to the funds.- 2. Debit card usageeffective
- * A debit card is a card where you take money directly from your bank deposit account.With a debit card, you will have the opportunity to withdraw cash without incurring additional fees from the bank... Therefore, for payments that require cash, you should use a debit card, such as for the following services:
- - Medical examination costs:You should use a debit card to pay because the hospital fees are quite large and long-term. Paying by debit card helps you control your finances more easily. Having more money means you can follow a better treatment plan and vice versa.
- Insurance fee:Paying for your insurance premiums with a debit card ensures you meet your financial goals and don't take out a loan to save or invest.
- Tuition:Tuition fees are not small at all. If you use a credit card, you can easily fall into the trap of high interest rates. Therefore, pay your tuition fees with a debit card so that you can study well and effectively.
- Living expenses incurred:For wedding expenses, car purchases, etc., you need to use a debit card to control your finances. Don’t spend too much and end up having to pay a large amount of money from your credit card.