Make the Most of Your Debit and Credit Cards

Debit and credit cards are dependable and convenient options for making purchases for products and services, big and small. When you understand how each one works, you can better use them to manage your budget and. achive your personal, financial goals.

While debit and credit cards look similar, the source of funds for completing transactions is the primary difference.

• Debit Cards When consumers initiate debit card transactions, funds are originated from your attached checking account.

• Credit Cards Credit card transactions allow consumers to borrow money from the issuer.

Credit Card Advantages

Credit can be deployed strategically to help improve your financial position. When used regularly and debt is paid in full monthly, you can rebuild or establish good credit. Many programs offer rewards such as cashback, travel miles, or gift cards. Credit is also a way to cover unplanned expenses if you are able to carry a small balance for a short period of time. Follow these best practices to manage your credit effectively.

• Pay the entire balance to avoid added interest.

• Remain up to date on billing cycles.

• Avoid “maxing out” the credit card.

• Use for medical emergencies, travel, online purchases, and reservations.

Debit Card Advantages

Debit cards provide quick, easy, and secure access to your finances on the go. You can also use online or mobile banking services to track expenses and monitor balances. The advanced technology offers various features, such as setting card limits, restricting transaction types, monitoring balance, and enabling notifications for updates on card activity.

Whether you choose debit or credit for your purchases, Frandsen Bank & Trust has many options to fit your needs.