Is debt-card safer than credit cards?
While two-thirds of people think that debit cards are safer than credit cards, the opposite is actually true. Pulling out your debit card could be extremely risky, and many people are completely unaware of the dangers. Before you pull out your debit card at the checkout counter, you might want to educate yourself and learn about how these cards work and what will happen if something goes wrong. Here are three reasons you should never use your debit card again.
The Fraud Protection is Different — and Not as Good
if someone steals your credit card or uses your credit card number to make unauthorized purchases,your responsibility is extremely limited. As long as you notify the issuer, your liability will be no more than $50, and most credit card companies waive even that small responsibility.
Debit cards provide no such protection, and getting your money back could prove to be very difficult. In some cases, you may not get your funds back at all. That is because using a debit card means the money Is Immediately removed from your bank account, and it is tip to you to get it back. If you lose your debit card, the thief could wipe out your bank account before you even know there is a problem.
You Will Not Improve Your Credit Score
Using a credit card and paying It off Is a great way to improve your credit score over time. Every time you pay your credit card bill on time, that simple action can improve your score. That is a big deal, since your credit score will play a role In everything from mortgage eligibility to the interest rate on your car loan. Using a debit card allows you to buy things, but it does not help you build credit or beef tip your credit score.
Improving Your Credit Score Might Save You Money on Your Loans
People with poor credit scores rarely obtain good interest rates Therefore, they end up paying more money than other people for the Rime type of loan as well as for borrowing the same amount of money. Here are several easy ways to go about improving your credit score so you can save money on your loans.
Dispute Errors on Your Credit Reports
Consumers should check their credit reports several times a year for two good reasons. The first & most important reason is to check for signs of identity theft. The second, and nearly as Important reason, is to see if any errors exist. Inaccurate information can lower your credit score, and negative errors are more likely to appear on your report than positive mistakes. Always check your credit report and dispute false information immediately so you can get it removed. Doing so can have a positive effect on your credit score, and doing nothing usually creates a huge negative impact.
Save a Little Money
Even if you live from pay check to paycheck, you should make the effort to save a couple of dollars each week. Having a mall stash of cash could be all it takes to keep you out of debt, while keeping your credit score above average numbers.
Make It a habit to avoid Impulse spending at least part of the time. Everyone needs a treat every once in a while, but it wouldn’t hurt to spend less so you can pare down your credit card debt.
Pay a Little Extra
if you are used to paying the minimum amount due on each of your credit card bills, you will never get out of debt. Make the effort to pay a little extra on each bill every month to pare down that debt and increase your credit score.
Borrow a Little
If you don’t already have a credit card, getting one now can actually Increase your credit score. Not only does how much you borrow affect your score, but how little you borrow does too. if you don’t use credit ever, it can hurt your score.
Get a Loan
Although the ultimate goal is to Increase your credit score enough to help you get better Interest rates on a loan, having a loan and making your payments In a timely fashion also helps to create a positive borrowing history. If you have a loan and you pay it on time, the end result is a better credit score.
Keep Older Credit
Did you now that older credit cards often help to give you a positive score? Well, they do as long as you have a good history of paying your bats in a timely manner. If you want to save money by paying less for interest charges on your home, car, or student loans, you should review your credit report and make changes in your spending and saving habits now so you an reap the benefits. Achieving good credit is possible, but only if you work at It. Once you do, lower interest rates are easier to obtain.