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[ad_1] Venmo is a financial platform acquired by PayPal when it bought Braintree for $800 million in 2013. Venmo has competitors, but its reach is huge and its rise meteoric—especially with millennials and younger. In the fourth quarter of 2018, it processed 19 billion U.S. dollars—that’s 80% growth year-on-year.1 Today, it has as many as 10 million users by some estimates. The Venmo app is representative of the willingness to embrace a new kind of money system. It represents a willingness to trust gadgets on a whole new level, and a lack of concern for financial privacy. But users—and you whether you’re a user or not—may not thoroughly understand the platform. And while Venmo might look free at first glance, there are many little Venmo charges you could be paying without even realizing it. Anytime you use a financial platform, it’s important to know what the possible charges and risks involved are. This lets you protect yourself and can save you money. Venmo makes it easy to pay a friend back for a meal or send money to your child in college. There are almost unlimited uses to this personal payment network, but are you paying Venmo fees every time you use the app? We’ve got answers below.  In This Piece What Is Venmo? A Guide to Venmo Charges Venmo and Your Financial Safety Is Venmo Right for You? What Is Venmo? Even if you’re not familiar with this platform, you’re likely familiar with platforms like it including Square Cash, Zelle and Google Wallet. Venmo is a type of peer-to-peer payment platform. It’s a mobile app that enables sending money easily among friends. No credit card, no wallet, no fees and no nagging for unpaid drinks required. Just link the app to a debit card and spend away. You can use Venmo to send and accept payments to or from other people online. Instead of finding the exact change to pay your friend back for dinner or stiffing him/her, for example, you can simply Venmo him/her the exact amount. You can also use Venmo to pay for goods and services from some online retailers as well as to make in-app purchases in some online apps. Some businesses even choose to use Venmo to make payments to freelance employees. Venmo is somewhat unique in that it’s also a social platform. Unless you change the settings, your transactions are visible to the public, as well as your friends on the platform. You can see who’s sending or receiving money from who, and the notes they include about what the payments are for. Creating a Venmo account is as easy as entering your email and selecting a username and password or using your Facebook account to create your Venmo account. Easy of account setup aside, Venmo users can probably learn a thing or two by reading the fine print and chatting with more suspicious types. A Guide to Venmo Charges Does Venmo charge a fee for its use? It depends on how you use it. Venmo doesn’t charge a fee to set up an account, hold an account or transfer money to others when you have a balance or are funding with your bank account or debit card. Venmo does have fees for some other activities.  Instant Transfer Fees One time that Venmo charges a fee is when you instantly transfer funds from your Venmo account to your checking or savings account. You don’t pay for standard transfers, which are sent via ACH networks. However, instant transfers are sent via payment card networks and are more expensive. Venmo fees for instant transfers are 1.75% of the transfer value. The minimum fee is 25 cents, and the maximum fee is $25. Credit Card Processing Fees You won’t pay a fee if you send money to other people using your Venmo balance or funds from your bank account or debit card. However, you will pay a fee if you send a payment that’s funded by your credit card. The fee is 3% of the total transaction.  Merchant Fees If you use Venmo as a business or charity, you pay merchant fees. These are seller transaction fees that occur each time you receive money for goods or services. Even if you’re a personal Venmo user, you may pay these fees if someone identifies a payment to you as being related to goods or services. Seller transaction fees are 1.9% of the transaction plus 10 cents. To get an idea of how much these fees might be, consider the table below. Transaction Amount Seller Transaction Fees $25 $0.58 $50 $1.05 $100 $2.00 Cryptocurrency Fees Venmo charges a fee if you use your Venmo balance to buy cryptocurrency. If you sell cryptocurrency and receive the funds from the sale in Venmo, you also pay this fee. The amount of the fee depends on the amount of the cryptocurrency transaction. Transaction Amount Fee $1 to $4.99 $0.49 $5 to $24.99 $0.99 $25 to $74.99 $1.99 $75 to $200 $2.49 $200.01 to $1,000 1.8% of the transaction More than $1,000 1.5% of the transaction Venmo Card Fees If you opt for a Venmo debit card, you won’t pay any fees for the card. You also won’t pay a fee when you use it to pay at the register or in online checkout processes, and you can make withdrawals from in-network ATMs with no Venmo fee. However, withdrawals from out-of-network ATMs cost $2.50 each time you make them. If you make over-the-counter cash withdrawals at a bank, the fee is $3.00 for each transaction. Venmo also offers a credit card with no annual fee. However, the card has other fees: $10 or 5% of the transaction value for cash advances Up to $41 for late fees Up to $30 for returned payment fees You’ll also pay between 19.49% and 28.49% in interest for any balance you carry forward on the Venmo credit card, depending on your creditworthiness and the type of account you have.  However, you can get between 1% and 3% cash back for eligible purchases. Overall

[ad_1] Key takeaways: Investing is a way to increase your wealth based on your risk tolerance and time horizon The best investments for low-risk investors looking for moderate returns are index funds, government bonds, and high-yield savings accounts The best investments for high-risk investors that want high returns are individual stocks, real estate, and cryptocurrencies Investing is one of the best ways to grow your wealth and improve your financial future. One of the keys to finding the best investments is to recognize the power of compound interest. The credit bureau Experian® describes compound interest as “when interest gets added to the principal amount invested or borrowed, and then the interest rate applies to the new (larger) principal.” There are many ways you can invest, and some investments earn more than others, and some investments are riskier than others. Today, you’re going to learn about the nine best investments in 2023 based on average returns as well as your personal risk tolerance. The investing information provided is for educational purposes only. We recommend consulting a financial professional before investing. The best investments The best investments right now to grow your wealth include: High-yield Savings Accounts Short-term Certificates of Deposit (CDs) Government Bonds Corporate Bonds Real Estate and REITs Individual Stocks Index Funds Exchange-traded Funds (ETFs) Cryptocurrency 1. High-yield Savings Accounts High-yield savings accounts are similar to a regular savings account, but you’ll often earn more interest by keeping your money in one of these accounts. You can sign up for a high-yield savings account through many banks and credit unions, and some accounts can earn you anywhere from three to four percent annually. If you have or plan on making an emergency fund, Javier Simon from SmartAsset recommends using one of these accounts. “Anyone looking to open a rainy day or emergency fund that provides a higher-than-average interest rate and high liquidity should consider a high-yield savings account,” writes Simon. You’re saving anyway, so why not make money from storing your funds? Best investment for: People with lower risk tolerance and who are good at saving. This is one of the safest investments with high returns because many banks are FDIC insured, so even if the economy has a downturn, your money is backed by the government. Risk level: Very low How to invest: Banks, credit unions, and online banks Potential returns: Moderate 2. Short-term Certificates of Deposit (CDs) When looking for where to invest money, many people turn to certificates of deposit, which are also known as CDs. Like high-yield savings accounts, CDs are another type of account. CDs work by allowing you to deposit your money with the caveat that you don’t withdraw the money for a certain amount of time. Once that time frame expires, you’ll receive your money back as well as the interest. Best investment for: People willing to store their money for one, three, or five years, which are the average predetermined time frames. Just remember, unlike a savings account, there’s a fee for withdrawing your money early. Risk level: Very low How to invest: Banks and credit unions Potential returns: Moderate returns that sometimes exceed those of high-yield savings accounts 3. Government Bonds Sometimes, the government needs to borrow money, so they offer people the option to loan them money via government bonds. Like CDs, these bonds are for a specified period, but they provide regular payments. Peoples sometimes use bonds as one of the best passive income investments due to these payments. One caveat to note is the return on government bonds varies depending on how the economy is doing. Best investment for: People with a low risk tolerance often buy government bonds. Unless the government fails, there’s not much that will prevent getting your return from this investment. Unlike other investments, government bonds can last for up to 30 years. Risk level: Very low How to invest: The United States Treasury or through a stock broker Potential returns: Low 4. Corporate Bonds Like government bonds, corporate bonds are loans, but you’re providing that loan to a company. This investment helps companies that need money to invest in new products and expand their business. Since these aren’t backed by the government, they can be riskier because the company may go out of business. Although these have a higher risk, they also have a higher return than government bonds.   Best investment for: Individuals with a higher risk tolerance and are looking for higher returns may want to invest in corporate bonds. These bonds pay out regularly, and they’re a safer investment when buying bonds from large, stable companies that have been around for a while. Risk level: Moderate to high How to invest: Stock brokerages Potential returns: High 5. Real Estate and REITs One of the investment ideas many people turn to is real estate because it can provide extremely high returns when the housing market is good. The downside is that when the housing market has a downturn, as we saw in 2008, people experience big losses. Rather than investing in real estate, you can invest in real estate stocks, which are called real estate investment trusts (REITs). These stocks are for companies that own properties like malls, office buildings, and other forms of real estate that generate revenue. These can be slightly less risky but still have some risk due to the nature of real estate. Best investment for: Those who are looking for high returns or have a diversified portfolio already and can weather some higher-risk investments. Risk level: High How to invest: Mortgage broker for real estate and stock brokerages for REITs Potential returns: High 6. Individual Stocks Individual stocks are available to everyone, and when the average person buys these types of stocks, they’re known as “retail investors.” You may have heard of retail investors investing in individual stocks during the GameStop stock hype of 2021, which also showed how risky individual stocks can be. Individual stocks come with a high risk and high reward. Basically, you’re

[ad_1] Getting a credit card is like taking a step toward financial adulthood. It brings you into the world of building credit and paying bills, which almost everyone has to deal with at some point, so it can help to get started as soon as possible. But the “firsts” of adulthood aren’t always easy, and that includes getting your first credit card. A Credit.com reader recently asked where to start: Hi, I am 18 years of age, I have no credit history, and I have low income. I’m wanting to get my own place, and would love some help finding a good credit card to build my credit that will accept my low income. There are three main things that will affect whether or not someone like our commenter could get a credit card: the person’s age, the fact that they have no credit and the amount of money they make. Get Your Free Credit Score & Monitoring Plus Weekly Updates From Our 50+ Experts Get It Now Privacy Policy 1. Can You Get a Credit Card at 18? Let’s start with age. Per the Credit CARD Act of 2009, consumers younger than 21 must have proof of independent income or a co-signer in order to get a credit card. It makes sense: If you’re going to get a credit card, you need to be able to show that you can pay your balance. Why Would I Want to Have a Credit Card at 18? Having a credit card at 18 can help you to start building your credit early. It also allows you to make purchases that may require a credit card, such as a car rental. 2. Do You Make Enough Money? That brings us to income. Since this commenter referenced wanting to live independently, it seems unlikely that they’d opt for a co-signer. That means this person would need to provide proof of their income. We don’t know exactly what our commenter means by “my low income” — even if it’s not a lot, it isn’t necessarily a credit card deal-breaker. You could always try to ask a credit card issuer what sort of income they’re looking for among card applicants, but you may not get an adequate answer, given that there’s more that goes into getting approved for a credit card than income. 3. Consider Becoming an Authorized User If you’re wondering how to get a credit card at 18, becoming an authorized user may be your best solution. An authorized user has permission from the cardholder to use their account to make credit card purchases. Typically, you receive a credit card with your name on it, but there might be limitations as to how much you can spend. If the credit card company reports authorized users to the credit bureaus and the cardholder makes on-time payments, this option could help boost your credit. As an authorized user, you’re not directly responsible for making monthly credit card payments. Instead, you should make a payment agreement with the cardholder to ensure your bills are paid on time. 4. Get a Secured Credit Card At 18, it’s likely you have little to no credit history. This factor could prevent you from obtaining a traditional credit card. Despite your lack of credit history, you could qualify for a secured credit card. This type of card requires you to pay a cash security deposit to open the account. For example, you might need to pay a cash security deposit of $500 to open a credit card with a $500 credit limit. With secured credit cards, monthly payments are typically reported to credit reporting agencies. In many cases, you can increase your credit limit without an additional cash security deposit after several months of making on-time payments.   Get a Student Credit Card If you’re a college student, you may qualify for a student credit card. These cards are specifically for full- and part-time students at higher education colleges or universities. Credit requirements are typically lower for student credit cards, especially when it comes to the length of credit history. If you have little to no credit, you may have a better chance of securing a student credit card than a traditional credit card. Keep in mind that credit card companies must still adhere to the regulations of the Credit CARD Act of 2009. So, you still need to have a cosigner, have proof of income or meet other requirements for a student credit card. Find a Credit Card 5. Ask Someone to Cosign for You Another option for obtaining a credit card at 18 is asking someone you trust to be a cosigner on the account. This method can help if your cosigner has a good credit score. Both you and the cosigner are responsible for making payments. How to apply for a credit card at 18 with a cosigner? Unfortunately, none of the major credit card companies allow for cosigners. If you can’t find a credit card you like that allows for a cosigner, you could opt for a joint credit card account. With this type of account, both parties remain responsible for making payments, but it’s likely your cosigner will be listed as the primary cardholder on the account. Tips to Help You Manage Your Card Obtaining your first credit card can be exciting, but it also comes with great responsibility. How you handle your credit card purchases and payments can impact your credit score for years to come. It’s important to set up good practices now to protect your future finances. Set Up Automatic Payments Setting up automatic payments is a great way to ensure your bills are paid on time. You can use your credit card to pay your bills and then pay your credit card bill by the due date. This process can help you build a strong payment history, which accounts for 35% of your credit score. Build a Budget The best way to avoid overspending is to build a budget. Start by tracking your spending for a month and

[ad_1] Quick answer box A money market account is an interest-earning savings account, with some features of a checking account. Saving money is the best way to prepare for unexpected life events and take control of your finances. But where is the best place to save your money? If you’ve been researching different savings accounts, you may have wondered, “What is a money market account?” at some point. As of March 2023, interest rates for money market accounts are up to 4.45%,which is higher than normal. Keep reading for a money market account definition, its benefits, and how it stacks up to other kinds of accounts. In This Piece: What Is a Money Market Account? How Does a Money Market Account Work? Benefits of Money Market Accounts Money Market Account vs. Other Accounts Money Market Account FAQ What Is a Money Market Account? A money market account (MMA) is a type of savings account that earns interest at a bank or credit union. They are sometimes called money market deposit accounts (MMDAs). MMA interest rates are usually higher than regular savings accounts and have some features of a checking account, like debit card and check-writing privileges, though there are more restrictions. How Does a Money Market Account Work? Money market accounts pay more competitive interest rates than a traditional savings account, with more access to your money than a high-yield savings account. They may also require a larger minimum deposit and balance than a traditional savings account. As a hybrid between a savings and checking account, money market accounts have some unique features. Interest: The interest rate offered by MMAs is typically higher than regular savings accounts. It is a variable rate, meaning it changes as the market changes. Access to your money: Some MMAs come with a debit card and/or checks that you can use to make limited purchases. Minimum balance: Money market accounts may have a required minimum balance, ranging from $0-$25,000. Each bank has different requirements, and they may scale for getting certain APYs. Although money market accounts have some features of a checking account, they aren’t meant to be used as a replacement for a traditional checking account. This is because money market accounts often limit you to six transactions per month. This includes withdrawals or payments by check, debit card, draft, or electronic transfer. However, you can usually make an unlimited number of transactions in person or by ATM, mail, messenger, or telephone check. Benefits of Money Market Accounts Money market accounts are great for short-term savings goals, like an emergency fund. You’ll earn a higher interest rate than standard savings accounts while still being able to easily access your money if needed. However, this type of account comes with its own set of restrictions. If you’re considering opening a money market account, consider these pros and cons. Pros of Money Market Accounts: Higher interest rates than traditional savings accounts Safe place to keep money with insurance up to $250,000 per account owner More access to your money than other savings accounts with debit card and check features Cons of Money Market Accounts: Lower interest rates than other accounts like high-yield savings accounts or CDs Requires a higher minimum deposit and balance than traditional savings accounts Monthly limit on number of transactions Remember that every financial situation is different, and while a money market account may work well for one person, it may not be a good fit for another. Money Market Account vs. Other Accounts Money market account features overlap with different types of savings and checking accounts. The differences between these accounts may be important depending on your financial goals. If you’re not sure if a money market account is best for you, see how they compare to other accounts. Standard Savings Accounts Interest type: Variable Higher interest rates: No Insured: Yes Debit card/checks available: No Minimum deposit/balance: Yes The biggest difference between money market accounts and traditional savings accounts is access to a debit card and checks with an MMA. Money market accounts also generally offer a higher interest rate than savings accounts. In February 2023, the average interest rate for an MMA was 0.48% and 0.35% for a traditional savings account, according to the Federal Deposit Insurance Corporation (FDIC). However, some banks like Discover and Ally are offering up to 3.4% on their MMAs. The difference is not always that substantial, as MMA interest rates vary with the market. If you find that the interest rate for an MMA isn’t that much higher than your standard savings account, it may not be worth the higher minimum deposit and balance requirements. High-yield Savings Accounts Interest type: Variable Higher interest rates: Yes Insured: Yes Debit card/checks available: No Minimum deposit/balance: Yes Money market accounts and high-yield savings accounts are very similar. Both offer higher interest rates than standard savings accounts and are insured. In March 2023, MMA and high-yield savings account interest rates were comparable. One main difference is the addition of debit cards and checkbooks with an MMA, allowing you more access to your money than a high-yield savings account. If you’re torn between the two options, make sure to compare interest rates, minimum deposit and balance requirements, potential fees, and transaction limits. Checking Accounts Interest type: Variable (or none) Higher interest rates: No Insured: Yes Debit card/checks available: Yes (unlimited) Minimum deposit/balance: Yes While money market accounts have some features of checking accounts, they aren’t meant to replace a checking account. You still need a checking account for daily expenses, since MMAs are usually capped at six transactions per month. Additionally, most checking accounts don’t earn interest, and if they do it’s a very low rate. These accounts work best when used together—one can’t replace the other. Certificates of Deposit (CD) Interest type: Fixed Higher interest rates: Yes Insured: Yes Debit card/checks available: No Minimum deposit/balance: Yes A certificate of deposit (CD) and a money market account are both insured savings accounts that earn higher interest rates than standard savings

[ad_1] Bank failures have made headlines recently, and it’s natural to wonder whether your money is safe in the bank. Silicon Valley Bank and Signature Bank both went under in recent weeks, while Credit Suisse and First Republic Bank have faced threats of failure. As interest rates remain high, additional banks could struggle, leaving consumers to … Is Your Money Safe in the Bank? Read More » Bank failures have made headlines recently, and it’s natural to wonder whether your money is safe in the bank. You can take 4 steps to ensure your deposits are secure. The post Is Your Money Safe in the Bank? appeared first on ScoreSense. [ad_2]

[ad_1] The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com. Credit.com does not provide, or endorse, any investment advice. In 2022, virtually all asset classes saw their prices plummet, leaving investors with nowhere to hide. However, real estate offered some much-needed solace for some. According to Morningstar, investor confidence in real estate soared to unprecedented heights in 2022, and it’s easy to see why. Between January 2020 and September 2022, the median sale price for existing and new homes in the U.S. rose more than 43% as rental prices increased 11%. Over the past year, home sellers enjoyed a 45% increase on their investment returns from 2020 and a 71% increase from 2019. Unfortunately, one thing that may be restraining some investors from tapping into the benefits of real estate investments is debt. However, bad credit doesn’t necessarily bar investors from the real estate market.  There are some alternatives for ultra-savvy investors who know where to look for safe but lucrative investments. Of course, anyone who has ever even considered buying a home or vehicle knows how important credit scores are.  In fact, bad credit can prevent some people from purchasing a home for themselves. That’s because it’s virtually impossible to secure a traditional mortgage with a bad credit score, meaning anything below 620. In today’s interest-rate environment, even those with a credit score below 720 may not be able to afford a traditional mortgage because of the hefty interest payments.  However, buying a home for investment purposes is entirely different in the eyes of creditors. While it’s much easier to get a traditional home loan if you have good credit, investors have plenty of other options for investing in real estate. 1. A Hard Money Loan or Private Lender For example, those intent on purchasing an investment property might consider getting a hard money loan instead of a traditional mortgage. Hard money loans are considered a last resort, and they’re only available to investors trying to fund an investment property. People who are trying to buy a home to live in can’t get a hard money loan. Hard money lenders look far beyond someone’s credit score and typically provide funds fast. Most of the time, hard money lenders only care whether the deal on offer is an attractive one. If the value of the home is right for the money, these lenders are likely to bite, using the property as collateral for the loan.  They still have to earn money on this kind of deal if they have to take the property due to non-payment, which is why the value of the property versus the amount borrowed is so critical. Private money lenders are another option similar to hard money lenders. While hard money lenders tend to be real estate professionals, private money lenders are anyone with money to invest. 2. Real Estate Investment Trusts Investors who want to invest in real estate but don’t necessarily want all the risk and work associated with it may want to consider buying into real estate investment trusts. REITs own and manage properties, and those that are publicly traded offer the added benefit of attractive dividend yields.  Publicly traded REITs are required to pay 90% of their taxable income to shareholders, generally via dividends. As a result, they offer a solid income stream without the extra work associated with being a landlord.  Even people with bad credit can easily invest in publicly traded REITs via an online stock brokerage account. 3. House Hacking If buying an income property is at one end of the spectrum in terms of physical involvement and REITs are on the other, house hacking falls somewhere in the middle. With house hacking, you’re simply renting out a room or other portion of the home you already live in.  This strategy may require zero investment upfront, depending on the state of the property and whether any improvements or modifications are necessary. House hacking can be used to reduce your living expenses or as the first step toward having an active real estate investment portfolio. House hacking can be as simple as renting out a room in your home or taking on roommates. On the other hand, it can also be as complex as building an extra suite onto your home or even purchasing a multi-family home. House hacking can also involve purchasing an older home in need of repairs and updates and living in it while you renovate it. So, you can sell it for more than what you put into it. 4. Crowdfunding The rise of crowdfunding has also created new opportunities for would-be real estate investors with bad credit. Some crowdfunded real estate investments are only for accredited investors, but others may be open to investors with bad credit.  Low account minimums are making it easier than ever before for investors with bad credit to secure a slice of the real estate pie for themselves. Crowdfunded real estate options are typically available online and may cover anything from a shopping mall or other large building to a group of apartment buildings or other properties.  As with any online investment options investors are advised to do their due diligence before investing in any of them. 5. Seller Financing Finally, some investors may be able to purchase an investment property via seller financing. This option is only available on properties that are fully owned by the seller with no lien. Sellers who need cash quickly also won’t be willing to finance your purchase of their property. When sellers finance someone’s purchase of their property, they act as the bank, essentially providing a mortgage to the purchaser. Credit isn’t usually a factor in seller financing, and the closing costs are usually low. However, you will be subject to the terms set by the seller, who may or may not offer flexibility.  Seller financing can also be attractive for sellers. It gives them a steady income stream instead of

[ad_1] Many people use the terms ATM card and debit card interchangeably, but these aren’t actually the same thing. To understand whether an ATM card is also a debit card, you have to know a bit about the history of these cards and what they’re used for. We’ve got the details on ATM cards vs. debit cards below. Find out the difference and get answers to some common debit and ATM questions. What Is the Difference Between ATM and Debit Cards? ATM and debit cards look quite similar. They resemble credit cards and typically have bars you can swipe. They may also have secure chips. However, they aren’t the same and don’t serve the same purpose. If the question is which came first, the ATM or debit card, the answer is ATM card. According to a report from the World Economic Forum, the patent for an early cash dispenser was filed back in 1960. ATMs became operational later that decade, along with automated teller machine cards—ATM cards. The first official debit card didn’t debut until 1972. It was called the ATM account debit card from City National Bank of Cleveland. ATM cards were originally designed to do one thing. Instead of going to the bank to get money, you could take cash out of your checking account via a machine. These machines were connected by regional networks. While the cards were issued by banks, they could be used to withdraw money anywhere there was a machine for a potential fee. As such, ATM cards are cards that are only used to interact at ATMs. Debit cards, on the other hand, have a wider function. In the past, ATM networks began looking for new revenue streams. They started creating relationships with retailers and eventually joined forces with the credit card networks to create what we now know as debit cards. Debit cards can be used like credit cards at checkouts in person and online. Most banks also issue debit cards that can act as ATM cards. However, an ATM-only card can’t act as a debit card. Debit cards have Mastercard or Visa logos on them, indicating which network they run on. ATM cards don’t have these logos. A Credit Card for Nearly Every Level of Credit Earn rewards, transfer balances, and explore cards with the best terms for you. Find Your Card Now Privacy Policy Pros and Cons of an ATM Card Some banks will still issue an ATM-only card if an account holder asks for one. These cards can only be used at automatic teller machines. Pros of ATM cards include: You can get cash at any machine, creating flexibility for money management. You can’t swipe the card to pay for goods and services, which can help reduce impulse purchases. They may be a good tool to go along with a cash envelope budget system. The main disadvantage of an ATM card is its limitation. You can’t use it to pay for goods and services. If you don’t have another payment method in your wallet, this can lead to you having to find an ATM and get cash anytime you want to purchase something. Pros and Cons of a Debit Card Most checking accounts come with the option for a debit card, and some banks issue one automatically. You can also get prepaid debit cards. Pros of debit cards include: Flexibility, as you can use your card at ATMs and pay for goods and services with it anywhere Visa or Mastercard is accepted You may be able to swipe your debit card as a credit card for added protection Options for managing your budget, as you can set limits on your debit card or get a prepaid debit card that limits how much you can spend They’re a common and recognized financial tool that won’t raise eyebrows when you use them The biggest con of a debit card is that it’s tied to your bank account. This can lead to impulse spending that brings your account balance low, even if you didn’t budget for the spending. You may also find your debit card is limited by daily or individual purchase amounts.  FAQS Can you use ATM cards at all ATMs? Yes, you can generally use an ATM card at any automatic teller machine. This means you don’t have to look for an ATM that’s associated with your financial institution.  Are there fees for using different ATM cards at different brand ATMs? Yes, there are fees for using ATM cards that aren’t associated with your financial institution or bank. Your bank might charge a fee for this activity, and you may also pay a fee to the ATM company. What happens when an ATM transaction fails? ATM transactions can fail for a few reasons. When they do, the machine notifies you of the failure and the reason. Some common reasons include: You don’t have enough money in your account to cover the withdrawal. The machine experienced a malfunction and couldn’t complete the process. You entered an incorrect PIN. Your card couldn’t be read by the ATM reader. In cases where a technical malfunction or incorrect PIN entry caused the transaction to fail, you may be able to try again. Are there any limits to how much can be withdrawn with debit and ATM cards? Yes, banks set limitations on how much can be withdrawn with debit and ATM cards. There may be a limitation on how much you can withdraw in a single transaction. Daily limitations also usually exist. For example, your bank may only allow you to withdraw $300 at a time or $1,000 in a single day. No standards exist for these limitations—each financial institution decides for itself.  Which Is Right for You? Ultimately, you have to decide whether an ATM or debit card is right for you. Take into account your own budget and the way you spend money. You should also consider what financial habits you need support for and which type of card would help. The