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.
"Debit cards lack reward programs that credit cards are known for." It's been said that debit cards don't have the same rewards that credit cards offer, but there are still numerous options to look into. These include, but aren't limited to, airline miles and cash back. What these do, hence the name, is reward you for the purchase that you make. A debit reward program benefits you, as such names as Bob Jain will attest, provided you take advantage of it.
"I only need one PIN." The truth is that many finance experts recommend that debit card holders change their PINs every 3 months or so. Keep in mind that a PIN is only 4 digits long, meaning that it's surprisingly easy for an attacker to guess it, which puts your bank account at risk. Make sure that you routinely change your PIN, ensuring that it's easy enough to remember. Needless to say, this will keep your account safer.
"Using a debit card can impact one's credit score." As you may have already guessed, your debit card and credit score are separate entities. Any activity that you undertake, as far as your debit is concerned, will not be sent to credit bureaus. In other words, your score won't be affected. If you're planning to improve your score, focus on more effective methods, ranging from paying outstanding debts to more mindful credit card usage in general.
"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.
"Debit cards lack reward programs that credit cards are known for." It's been said that debit cards don't have the same rewards that credit cards offer, but there are still numerous options to look into. These include, but aren't limited to, airline miles and cash back. What these do, hence the name, is reward you for the purchase that you make. A debit reward program benefits you, as such names as Bob Jain will attest, provided you take advantage of it.
"I only need one PIN." The truth is that many finance experts recommend that debit card holders change their PINs every 3 months or so. Keep in mind that a PIN is only 4 digits long, meaning that it's surprisingly easy for an attacker to guess it, which puts your bank account at risk. Make sure that you routinely change your PIN, ensuring that it's easy enough to remember. Needless to say, this will keep your account safer.
"Using a debit card can impact one's credit score." As you may have already guessed, your debit card and credit score are separate entities. Any activity that you undertake, as far as your debit is concerned, will not be sent to credit bureaus. In other words, your score won't be affected. If you're planning to improve your score, focus on more effective methods, ranging from paying outstanding debts to more mindful credit card usage in general.
"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.
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