The Main Differences Between a Credit and Debit Card
  Choosing the right card can be tricky. With tons of debit and credit card options out there, it’s hard to figure out what might be the best option for you. Here are all differences between a credit and debit card and some tips to help you make an educated choice.     Credit vs. Debit Card   First and foremost, it’s important to understand the main differences between a credit and debit card. It’s easy to confuse the two; they look similar, feel the same, and both function at the grocery store or the mall. However, the main difference is that while a debit card takes money directly from your bank account, a credit card is charged to what’s known as your credit line. This is essentially the amount of money that you can charge to your card.     What is a credit card?   A credit card essentially allows you to borrow money from a lender. Once you open a credit card, you’ll receive a credit limit. This is the maximum amount of money you can borrow to make purchases every month. It’s based on a range of factors including income, but most importantly your credit history. Anytime you make a purchase it will be charged to your line of credit which you’re liable to pay for at a later date. Typically, payments are interested free, however, if you forget to make a payment you may be responsible for a late fee. Usually, this will happen if you fail to pay within 30 days.   In most cases, you need to have a social security number and be at least 18 years old to qualify for a credit card.  If you’re 18 years old and lack a valid source of independent income or assets, you’ll likely need a parent or guardian to co-sign. Otherwise, you’ll need to wait until you're 21 years old.  Reported income in general is how banks decide whether you’re likely to repay debt as well as how large your credit line should be.   If you’re a college student, a student credit card is another option. Some of the best student credit cards available may even offer a $0 annual fee and 1% cashback rewards.  You can also opt for a secured credit card. This essentially requires you to make a deposit before opening an account, but it is another good option for people with poor credit or those just starting out.   According to MoneyUnder30, most credit card companies require applicants to have a credit score of 700 or more to qualify. Many of the better credit card offers will typically also require longer credit history, while credit card companies that accept lower credit scores may have higher interest rates.     What is a debit card?   As mentioned, a debit card is linked directly to your bank or checking account. Unlike a credit card, where you borrow money on credit, with a debit card, the money is pulled directly from your account. Most debit cards function with a PIN number which you’ll input anytime you take money out of an ATM or make a purchase. One of the best perks about a debit card is that it does not affect your credit score -- that three-digit number that has the capacity to derail or assist with your financial wellbeing.   There’s also no need to worry about late payments because the money is immediately taken from your account as long as you keep a running balance. If you’re out of funds, your card will simply be declined. Anytime you use a debit card, the bank puts a hold on the amount spent and money will either be deducted immediately or within a few days.     What is the best option for me?   There are a number of factors to take into account when choosing between a debit or credit card. Here are some of the things to consider when making your decision:     Are you a chronic overspender?   If you tend to overspend, you might want to consider a debit card. One of the perks of a debit card is that you can only spend what’s in your bank account which essentially prevents you from going over your limit or racking up debt. With a credit card, you can spend up to your allotted line even if you don’t have that available in your account because your credit card is not directly linked. This makes it easy to go over budget but could also lead to dreaded credit card debt.  Some debit cards also have prepaid options, which allows you to load a fixed amount of money on our card.     Are you trying to build credit?   If this is the case, definitely go with a credit card. Building your credit and maintaining a good credit score can help you get perks like better interest rates and loans in the long-run. As long as you pay your bills on time, you should be a good shape. Credit cards also offer reward programs and great incentives like cashback options or airline miles. This is definitely something to consider, although your financial wellbeing and future should take center stage when opting into a credit card.     Other things to consider:     Fraud   With any card, fraud or identity theft are always a risk. However, which card you have might dictate how much of your money you get back. This is because of how much you are liable to pay in the event of identity theft differs. If someone uses your debit card and you report it missing or stolen within two business days, you’ll only be liable for up to $50. Your maximum loss increases to $500 if you wait more than two days after learning about the theft but less than 60 days after receiving your statement.   With a debit card, the amount you’re liable for increases the longer you wait and could mean you lose it all if you wait more than 60 days after getting your statement to report the theft. However, thanks to the Fair Credit Billing Act, you’re only liable for $50 when your card is stolen. Theft obviously isn’t at the top of our minds when settling on a card, but it is definitely something to consider when thinking about which option to choose.     Interest Rates   When choosing a credit card, consider interest rates and always read the fine print. The average credit card interest rate for June 2020 was a little over 20 percent, according to the balance. Some credit cards offer zero percent interest for the first few billing cycles.   Interest rates can also lead to hefty charges if you pay late. This offers a way for the lender to make money off of their customers. Ultimately, the better your credit score, the lower your interest rates.     To see some of the perks you can get with a credit card, check out this story on some of the best credit card sign-up bonuses.       Resources:   https://www.thebalance.com/difference-between-a-credit-card-and-a-debit-card-2385972 https://www.investopedia.com/ask/answers/050415/what-are-differences-between-debit-cards-and-credit-cards.asp https://www.nerdwallet.com/article/credit-cards/what-is-a-good-apr-for-a-credit-card https://www.identitytheft.gov/know-your-rights https://www.consumer.ftc.gov/articles/0219-disputing-credit-card-charges https://www.moneyunder30.com/how-to-apply-for-a-credit-card
Six of the Best Credit Card Sign Up Bonuses for July
  With so many credit card options out there, it's hard to decide on one, especially when many offer unique sign-up bonuses and benefits. Here are six of the best offers to check out this month.  

Types of Bonuses

Before we get down to the offers, it’s important to dive into the different types of bonuses or rewards available. Most credit card companies will typically offer a cash-back reward. This means you’ll typically need to spend a certain amount in order to get money off your monthly bill. While many will offer a dollar amount, some companies will offer a percent cashback on specific expenses. For example, some cards offer cashback on everyday purchases like groceries and gas, while other cards might offer cashback on entertainment or vacation spending.  

Important Things to Consider When Choosing a Credit Card

When choosing a credit card, consider several things, including what expenses you’re going to be using the card for; this should dictate what card you pick. For example, if you're N avid travel you might consider purchasing a card that offers miles or stellar travel rewards. If you’re a struggling college student or post-grad, you’ll probably want cashback on groceries and gas. Also, consider how often you’re going to use it. For example, will you use it to pay living expenses or merely extracurricular activities? Another thing to consider is the credit limit. In other words, this is the amount of money the credit card company allows you to borrow each month. This is typically based on a number of factors including your credit score and income. Credit limits can range from a few hundred dollars to thousands, which is something you’ll want to consider, especially if you have a limit under $1000. You typically only want to use less than 30% of your credit limit a month to prevent large drops in your credit score. When you consistently borrow over that limits, credit card companies might perceive you as a greater risk Most importantly, you’ll need to consider your credit scores, as this could affect your ability to obtain some rewards cards and a low annual percentage rate, the annual rate of interest charged for borrowing. For many credit cards, you can bypass APR expenses by paying your monthly balance on time. Also, take into account fees and penalty charges for paying your bill late or going over your allotted monthly credit limit. If you travel often, you’ll also want to consider whether the card has foreign transaction fees, which could increase the cost of overseas purchases.  

1. SavorOne Rewards from Capital One

This credit card is notoriously ranked for its stellar cashback rewards and offers 3% cashback on dining and entertainment, making it an ideal option for someone who likes to eat out or see a show. The card also offers 2% cashback on all grocery purchases, including those from Target and Walmart and 1% on any other purchases. Better yet, if you spend $500 or more during your first three months with the card you’ll get a $150 cashback bonus. To obtain this card you’ll need an excellent credit rating, meaning you’ll likely need a credit score above an 800.  

2. QuickSilver from Capital One

The QuickSilver card from Capital One is another great option offering $150 cashback when you spend $500 or more within your first three months of opening a card. Rather than offering a range of cashback bonuses, the QuickSilver card offers 1.5% on all purchases. This card will also require an excellent credit score rating.  

3. Amazon Prime Rewards Visa Signature Card

If you’re an avid Amazon shopper, consider the Amazon Prime Visa Signature Card. This card offers 5% cashback on all Amazon or Whole Foods purchases, 2% cashback on dining out and gas, and 1% back on all other purchases. To get this card you’ll need an eligible Amazon Prime membership, but you’ll also get a $70 Amazon gift card immediately after you’re confirmed for the card. This could even help offset the cost of a pricey yearly prime membership. Penalty fees for late-payments extend up to $39, although there’s no fee for returned checks.  

4. TD Cash Credit Card

This credit card from TD Bank is offering 0% APR on all purchases within your first 15 billing cycles and either 12.99%, 17.99%, or 22.99% afterward depending on your credit score.  Like the Capital One SavorOne card, you’ll get 3% cashback on dining and entertainment, 2% on grocery store purchases, and 1% on any other purchases. You’ll also get $150 cashback when you spend more than $500 within the first three months.  

5. Discover it Secured

This card from Discover is an ideal option for someone looking to build credit. Like other cards on this list, there’s a $0 annual fee, unlimited 1% cashback on all purchases and 2% cashback on restaurants and gas stations up to $1,000 every quarter. As part of the intro offer, the company is also offering to match all the cashback rewards you earn throughout the first year! Although the regular APR is 22.99%, the card boasts zero foreign transaction fees.  

6. Wells Fargo Cash Wise Visa card

Like the CapitalOne options on the list, this Visa card from Wells Fargo also offers $150 cashback when you spend $500 within the first three months. Likewise, there’s no annual fee and an unlimited 1.5% cashback reward. If you use Google or Apple Pay frequently, this card also offers 1.8% cashback on any digital wallet purchases during the first year with the card. Another interesting perk is insurance protection on your phone. In other words, if you pay your cell phone bill with the credit card you’ll get up to $600 in insurance protection with a $25 deductible in the event that your cell phone is stolen or damaged.   Resources: https://www.cnbc.com/select/best-credit-card-sign-up-bonuses/ https://www.creditcards.com/credit-card-news/help/6-consider-before-choosing-picking-credit-card-6000/ https://wallethub.com/best-credit-card-promotions https://wallethub.com/d/discover-it-secured-credit-card-2289c/ https://www.moneyunder30.com/credit-card-cash-sign-on-bonuses#CashWise
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