Ever think about types of cards to have in a wallet? Well, here’s your answer!
Keeping track of your spending can be easier said than done. Especially when you consider the number of different payment methods available to us today. From debit cards and checks, to gift cards and rewards programs, etc. There are an abundance of options at our disposal. As a result, it can be easy to lose track of which card is best for each situation.
To help you navigate this sea of financial tools, we’ve compiled a list of the most common types of cards. Aside from that, we’ve also listed their benefits so that you can make the right choice every time you hit the checkout.
Also read How to Protect Your Cards in a Wallet: 5 Useful Tips!
Types of Cards in Wallet? Let’s Go!
Credit Cards
Credit cards are a type of loan with a set interest rate that you’re required to pay back at the end of a certain time period. Use them to make purchases at stores or online, or to obtain cash advances at ATMs. These cards have the potential to improve your financial health, but only if you use them responsibly. Tools like Credit Sesame can help you monitor your credit score and make informed financial decisions.
Looking to build or improve your credit? Then you’ll want to choose a credit card with a low interest rate. For greater financial flexibility, consider a credit card with a rewards program. It’s important to remember, however, that interest rates and rewards programs vary widely, so choose a card that works for you.
Debit Cards
A debit card is linked to your checking account. It also withdraws money directly from your bank balance. You can use them to make purchases at almost any retailer. Aside from that, they are usually accepted anywhere credit cards are. When it comes to convenience, debit cards are hard to beat. They’re easy to use and you can get your money back almost immediately, provided you’re not dealing with a fraudulent charge. However, debit cards can also help you keep track of your spending, since you’ll see your account balance drop whenever you make a purchase.
Keep in mind that debit cards are not loans, and if you try to spend more than you have in your account, you could incur hefty overdraft fees.
Rewards Cards
Rewards cards are best suited for people who want to maximize their spending and earn cash back or travel credits along the way. These cards often have higher interest rates, so they’re not advised for those who need to keep their spending under control. If you pay your balance off in full each month, though, you can use them to your advantage. Some rewards cards even offer travel credits that can be applied towards airline tickets or hotel stays. You can find a rewards card that matches your spending habits by using a tool like Credit Sesame’s card selector.
Remember: It’s important to pay your balance off as soon as humanly possible to avoid interest charges and maintain good financial health.
Gift Cards
There are several types of gift cards, including restaurant gift cards, airline gift cards, and shopping gift cards. The catch is that the recipient can use them only at the specified retailer or brand. If you’re not sure what to get someone, a gift card could be your best bet. You can even buy gift cards for yourself, which is a great way to budget. If you don’t plan to use the gift card in the near future, you can put it in a safe place and remember to check the card’s expiration date. Gift cards can be a great option for last-minute gifts, but you should be wary of scammers.
Make sure to purchase gift cards from reputable sources, like the store where they’ll be redeemed, or online retailers like Amazon.
Checking Accounts
While checking accounts are primarily used to store your money, they also offer a few other perks. Some banks allow you to make an unlimited number of free deposits, while others limit you to a few per month. In addition, many checking accounts come with low or no-fee interest rates, which can be great if you’re trying to save money. If you’re looking for a new bank, check out online reviews and ask friends and family for recommendations. You can also use tools like Banking Toolkit to narrow down the search. If you want to take your account to the next level, consider pairing it with a savings account. The two accounts can work in tandem to help you save for big expenses like vacations and weddings.
Savings Accounts
A savings account is a great way to manage your extra money. You can earn a small amount of interest on your deposits, which is money that you’ve earned for keeping your money in the bank. You can use savings accounts to save for short- and long-term goals, like vacations, weddings, and graduations. To maximize the benefits of a savings account, try setting up automatic transfers to move money into the account each month. You can also consider investing your savings account, which has the potential to earn you a higher interest rate. As with all financial accounts, it’s important to choose a savings account that’s right for you. It’s also helpful to have a plan for what you’ll use the money for, as that can help you stay disciplined with your savings.
Conclusion on Types of Cards in a Wallet
Credit cards, debit cards, rewards cards, gift cards, checking accounts, and savings accounts are all types of cards that you may find in your wallet. They each have their own unique purpose, and it’s important to use the right card for the situation. Credit cards are best for people with good credit, whereas debit cards are best for people who don’t have a lot of extra money. When you know which type of card is best for each situation, it can make navigating the world of financial tools much easier.
