Did you know that approximately as many as 98 percent of all Americans distrust information on the Internet? One of the reasons for this is that, while there is plenty of accurate information, there are numerous details that simply don't hold up well. This is especially true when it comes to finance, which brings us to the topic of debit cards. Here are some of the most common myths about debit cards, debunked by Robert Jain.
"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.
"There's no need to change my PIN." If you have the same PIN that you originally selected years ago, it may be time to change it. In fact, did you know that a PIN should be changed every 3 months? Not only does this help you stay on top of your finances, but it will reduce the likelihood of your bank account being put at risk. As long as you select a PIN that can be easily remembered, at any moment, your account will be fine.
"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.
"Credit is safer to use than debit." Though you may have been told that credit cards are safer than debit cards, no matter where you shop, this isn't exactly the case. Keep in mind that the only way that these cards differ is in where they obtain their funding. Otherwise, they are practically identical. What this means is that, if you decide to use your debit card, you will be able to benefit from a similar level of financial security.
"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.
"There's no need to change my PIN." If you have the same PIN that you originally selected years ago, it may be time to change it. In fact, did you know that a PIN should be changed every 3 months? Not only does this help you stay on top of your finances, but it will reduce the likelihood of your bank account being put at risk. As long as you select a PIN that can be easily remembered, at any moment, your account will be fine.
"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.
"Credit is safer to use than debit." Though you may have been told that credit cards are safer than debit cards, no matter where you shop, this isn't exactly the case. Keep in mind that the only way that these cards differ is in where they obtain their funding. Otherwise, they are practically identical. What this means is that, if you decide to use your debit card, you will be able to benefit from a similar level of financial security.
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