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For decades, bank cards have been an everyday item for both businesspeople and those who use them for personal reasons. Especially now that contactless payments are gaining traction as a result of recent occurrences. And the best part is that banks have created a myriad of card varieties that can meet virtually any requirement. Debit cards are reasonably straight forward in the fact that there are no loans involved, if there is money is in your bank then, you can spend if there is not, then you can’t. As such today’s article will focus more on credit and cash cards.

The Ultimate Guide to Bank Cards And How to Use Them

Cash Cards

A reasonably new financial aid for consumers which kind of hold the best characteristics of both cards are, cash cards from rabbit finance, they also however contain some not so good ones. You top up the card you go so you’re never spending money that you don’t have but, you may have to pay charges or fees in order to reap the incentives that the insurance comp; any or bank offer the customers for using the card, these can be anything: from cashback when a cardholder buys products/services from the bank’s partners to money ‘prizes’ for withdrawing an agreed amount monthly or something like getting a percentage off every time you buy 50 products using the card.

Credit cards

People can use credit cards to pay for items with money borrowed from an insurance company, a bank either commercial or private, which they must return at the end of the month at an agreed amount. A really useful helping hand for emergencies, if the money is paid back when agreed at the agreed amount. Failure to do so could mean future borrowing issue

Essentially you are joining into a credit agreement/contract when you go through the application process, as such a credit card has certain criteria that the borrower must meet and this can be challenging for some people, if they have bad finance or, if their credit history is not good. When you apply for a credit card, the bank will look through your credit history – if your credit score is bad or non-existent, your credit limit is likely to be low at first and or, you may have to pay extremely high charges by way of interest also known as (APR).

Debit cards

These cards, sometimes known as check cards, are connected to a person’s bank account and can be used to make online and POS terminal payments. The funds are taken immediately from the account, and the cardholder is unable to pay more than the balance on their account, thus there is no chance of sliding into debt.

Debit cards have daily spending limits, so if you want to buy something for more than is in your bank, you won’t be able to, even if you still have the majority of the money in the bank. This is a security feature: if your card and bank information are taken, the thief won’t be able to withdraw a large sum of money. You can still adjust your daily spending limit if you wish to — just contact your bank or use an app to do so.

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