Making Money Personal

Top Reasons to Use Your Debit Card - Money Tip Tuesday

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When it comes to payment options you may think that credit cards are the most popular ways to pay.  But you may be surprised that that’s not actually the case. If I told you debit cards are the top used payment method for Americans would that surprise you?  

Links:

  • Look into more credit/debit card statistics and trends
  • Read more about American household debt statistics
  • Learn more about our debit card features and benefits as well as Identity protection with our Better Checking account
  • Check out TCU University for more financial education tips and resources!
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  • Learn more about Triangle Credit Union

    • Transcript:

    Welcome to Money Tip Tuesday from the Making Money Personal podcast. 

    I think it’s safe to say that we all love to spend money and we certainly have a lot of options to choose from when we do so.  

    When it comes to paying credit and debit cards are the top preferred methods. But, which one do people use more?  

    According to a 2023 Forbes survey, 54% of Americans use a debit card as a primary payment method. That same survey stated that only 36% use a credit card (physical or virtual). 

    Why are debit cards so popular? Well, there are few reasons why people haven’t yet abandoned the debit card when they make purchases. 

    1. Debit cards are more accessible. Because they're not dependent on a credit score, they’re available to people with lower or no scores at all. Even if your credit isn’t in great shape, you can still get one because all you need is a checking account. This makes them especially useful to teens and young people who haven’t established any credit yet. Debit cards give many people convenient access to their funds so they can pay online and in stores without needing cash or dare I even say it... a check.

    One little caveat to remember though is that debit cards do not help you build credit so you’ll need to explore other options if you’re looking to establish or boost your credit score. 

    1. Debit cards are just as convenient as credit cards. You can add to your phone’s wallet, use them in online checkouts and now the newest cards enable you to pay at contactless terminals. And just like many credit cards, you get access to card controls to turn it off and on, set up notifications when you make a purchase and set up travel alerts when you’re ready to venture across states or out of the country.
  • You can still get rewards. Everyone loves to gush about the cool rewards they get through their credit cards, but with a debit card you can get rewards too. Your debit card likely participates in a rewards program that gives you a percentage of cash back or other special offers just for using it with certain vendors. At Triangle, we offer a Purchase Rewards program where you can earn a percentage back when you activate the vendor offer and use your card with that vendor.

  • Debit cards don’t charge an annual fee. Popular credit cards that offer attractive rewards and offers typically come with an annual fee. The better the offers, usually the more expensive the fee. If you have one of these cards, you may be spending anywhere from $95 a year to over $400 a year. Debit cards don’t charge you anything to use them so you don’t have to worry about that annual surprise charge.

  • Debit cards are quick to replace. If you lose it, break it or anything happens to it it’s really easy to get a new one. At Triangle we have Debit on Demand which offers instant issue cards. If you need a new card just walk into a branch and within a short time you’ll walk out with a brand new one. Try doing that with a credit card.

  • And the last reason is probably the biggest one. Debit cards don’t contribute to debt. According to a Motley Fool survey, Americans are carrying over $17 trillion in debt, with just over 1 trillion of that being credit card debt. TransUnion reported that on average, individual card holders are carrying around $5,700 in credit card debt. If you’re debt averse or trying not to get deeper into debt, a debit card will be your best friend. Using a debit card forces you to pay closer attention to how much you’re spending to avoid overspending and makes it easier to maintain control of your finances. 

    • If you have a debit card but aren’t using it much. I hope this tip will help remind you to take it out and use it a little more.  

    If you haven’t set one up yet here are just a few things to keep in mind when you get started. 

    • Remember to set up overdraft protection so you don’t get charged fees in case you accidentally charge more to your card than what’s available in your checking account. 
  • Make sure to register your debit card with an identity theft protection service like Triangle’s ID protect with our Better Checking account so it’ll be constantly monitored for fraud. 
  • Familiarize yourself with the card controls so you know how to turn your card off and on and to set notifications to stay on top of every transaction 
    • Last but not least, if you use a mobile wallet, remember to add your debit card so you can use it the next time you pay with your phone. 

    If there are any other tips or topics, you’d like us to cover, let us know at [email protected].  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

    Thanks for listening to today’s Money Tip Tuesday and check out our other tips and episodes on the Making Money Personal podcast.  

    Have a great day! 

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