This week we are excited to dive into the Do’s and Don’ts of Credit and Debit cards! Offering two very similar, but uniquely different services for your financial needs, these cards can help you to reign in your finances and grow your credit score when used properly. Learn all about these tips and tricks courtesy of Heartland Bank.

Debit Card: A card issued by the bank, that is tied directly to a checking or savings account, which allows money to be electronically transferred from one bank account to another when making a purchase.

DO

1. Use for daily transactions. It’s always great to have a paper trail reminding you of your purchases.
2. Use for repeated expenses such as gas, groceries, and other costs you can plan for.
3. Balance your check book. Sometimes charges such as gas or dining can take several days to run through so be sure to keep track of your spending by balancing your checkbook weekly.

DON’T

1. Use your debit card online unless you absolutely have to. Having your credit card information stolen is one thing, having your bank information stolen is another.
2. Spend more than you have in your account. Overdraft fees are no fun for anyone!
3. Postdate transactions if funds are not readily available in your account.

Credit Card: A small plastic card that is offered by the bank or other financial institution, allowing the card owner to purchase goods and services on credit.

DO

1. Use for online expenses through secured vendors. Many discounts may be offered online only and can save you and your family a bundle.
2. Pay your bill in full each and every month. Make to avoid hefty interest rates and other timely fees by not extending your balance over the next month.
3. Utilize points to help you earn while you spend. These points are great for supplementing costs of family trips or other extra activities.

DON’T

1. Spend more than you have allocated for the month. Paying more for interest and other fees is money wasted.
2. Open too many credit card accounts. Keep one or two cards that you use and payoff each month to help boost your score.
3. Max out your balance, even if you pay if off each month this can potentially damage your credit score and serve as a red flag to potential lenders.

Get started on your finances today with a secure credit or debit card from Heartland Bank! We’ll help you understand the ups and downs of each and find the best solution for you and your needs.