Monday, February 9, 2015

Cash, credit or debit?

Whenever you make a purchase, you have a wide range of payment methods to choose from. Cash, credit or debit? This card or that card? Even though each option you have is still paying for the purchase by accessing money in some way, it's important to be smart about using different payment methods. Knowing the difference between each payment option you have can really pay off (oh how punny). Here's a quick run down to help you understand your different payment options.

     Check out this Young & Free blog post, where we got our info and graphic.

Are you able to answer these questions about your card?

  • Do you pay a monthly fee for your checking account? If so, do you know how much?
  • Can the monthly fee be waived with a minimum balance?
  • Is there a monthly transaction limit on your debit card?
  • Can you use other financial institutions' ATMs? Is there a fee for doing so?
  • Are there online banking tools available to you to help manage your checking account?

  • What is the annual fee for your credit card?
  • What is the interest rate?
  • Is there a rewards or cash-back program associated with your credit card?
  • Does your credit card offer extended warranties on certain purchases?
  • How much are you charged for cash advances (ATM withdrawals using a credit card)?

  • How much does a prepaid card cost you? There may be a combination of different fees including monthly, activation, reloading, ATM, maintenance and transaction fees.
  • Is there a fee for checking the balance on your card?

Now you have a little bit more knowledge behind each card that you may carry in your wallet. Make sure to educate yourself before choosing to sign up for a credit card or getting a debit card through a financial institution. 

Michigan Community Credit Union's checking account program provides a full range of services at no cost to members, including convenient features like no minimum balance requirements, no restrictions or hidden charges, free online banking, 24-hour ATM access at more than 28,000 surcharge-free ATMs nationwide and so much more! 

For more information about our checking accounts, click here.

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