Have you ever wondered about the uses of a credit card vs. a debit card? It’s likely you have both types of cards in your wallet at this very moment, and you’re given the option to choose one of themâsometimes in a matter of secondsâevery time you make a purchase. Still, you have lingering uncertainty about whether you’re making the best choice… and that same question pops into the back of your mind every time you buy something: “Should I use a credit card or debit card?”
Being uncertain about the difference between a credit card and debit card or the best time to use either is a common dilemma. The better you understand the benefits of eachâbeyond the fact they offer a way to access money without having to carry cash or a checkbook aroundâthe savvier a spender you’ll become.
Managing revolving credit vs. a bank account balance
Credit cards and debit cards both offer a convenient way to pay for things, but they work quite differently behind the scenes. As a result, they each appeal to different types of consumers, says Lou Haverty, financial analyst and founder of Financial Analyst Insider.
A credit card is a form of revolving credit. When you spend with your credit card you are borrowing, and you pay interest if you carry a balance, Haverty says. A debit card, by contrast, is linked to a bank accountâusually a checking accountâand the money is withdrawn as soon as you make the transaction, typically using a PIN.
A difference between credit cards and debit cards is that with a credit card, the exact amount you can spend depends on your credit limit and the balance you are currently carrying on the card, Haverty explains. If you have a $1,000 credit limit and a $600 balance from previous purchases, you can continue to charge an additional $400. If you’ve reached your credit limit, you won’t be able to use the card for more purchases until you pay off at least part of the balance. You owe a minimum payment each month.
When considering credit card vs. debit card, know that most credit cards carry an interest rate, expressed as an annual percentage rate (APR), which is essentially what you pay to borrow. You’ll have to pay interest on that $600 balance mentioned above if you carry the balance from month to month. âCredit cards require a responsible approach to your personal finances because you have the ability to spend beyond what you might have as cash in your bank account,” Haverty says.
A difference between credit cards and debit cards is that with a debit card, funds are pulled directly from the balance you have in the checking account to which the card is linked. In a traditional account setup, you can’t spend more than what you have in the account, which helps reduce the chance of racking up debt. If your account offers overdraft protection, you may be able to spend more than your account balance by leveraging funds from a different, linked bank account.
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âCredit cards require a responsible approach to your personal finances because you have the ability to spend beyond what you might have as cash in your bank account.”
Knowing the requirements for each card
Another key difference between a credit card and a debit card is the criteria you’ll need to meet for each. âGetting approved for a credit card is usually dependent on your personal credit score. The higher your credit score, the more likely you are to be approved,” Haverty says. âIf you have a lower credit score, you may still get approved, but you might have a lower credit limit.”
Patricia Stallworth, certified financial planner and money coach, says that in addition to your credit history, factors such as your employment status could play a role in credit card approval.
When analyzing credit cards vs. debit cards, consider that a debit card is typically issued automatically when you open a checking account. This process usually requires some personal information, such as a Social Security number, driver’s license, employment information and valid email address. A deposit may also be needed to fund the account and complete the application. Then stay tuned for your debit card in the mail!
When should I use credit vs. debit?
While it’s easy to have credit card vs. debit card on the mind, there are some scenarios in which using either a debit card or a credit card could fit the bill, depending on your financial needs and goals. Use the outline below as a guide for when the question of “When should I use credit vs. debit?” comes up:
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Use your debit card if…
- You’re new to using a card to make purchases. Until you know you have the discipline to control your spending with a card, a debit card could be the way to go, as it’s a great tool for ensuring you don’t charge more than you can afford. âDebit cards are great for everyday purchases that you have budgeted for because the money comes directly out of your account,” Stallworth says.
- You want cash back without the fees. If your debit card is linked to a checking account that offers rewards, Stallworth says you may have rewards-earning potential without the hassle of fees. âWhile there is generally no cost to participate in debit card rewards programs, the costs and fees may be higher with some credit card programs,” she adds. For instance, Discover Cashback Debit charges no fees1 and allows you to earn 1% cash back on up to $3,000 in debit card purchases each month.2
Why should credit cards have all the fun?
Now you can earn cash back with your debit card.
Discover Bank, Member FDIC
- You have debt you can’t pay off. When should I use credit vs. debit? âIf you’re struggling to manage or get out of debt, a debit card should be your ‘go-to card,’” Stallworth says. “You can’t get out of debt if you keep charging.”
- You want cash at the register. If you still like to have cash in your wallet, consider this difference between credit cards and debit cards: Most retail stores will allow you to get cash at the register when you pay with your debit card. âA credit card will most likely charge you a cash advance fee if that feature is available,” Haverty says.
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“Debit cards are great for everyday purchases that you have budgeted for because the money comes directly out of your account.”
Use your credit card if…
- You want product coverage.Â Some credit cards come with purchase protection, which makes them a great option for online and large purchases, Stallworth says. “If I have a dispute with a merchant, I have more leverage with a large credit card company behind me.”
- You’re trying to build (or rebuild) your credit. âYou will need a single credit card with a small limit that you pay off in full each month to build a credit history,” Haverty says. A key difference between credit cards and debit cards is that debit card usage can’t help you build a credit history. A debit card can help you build strong budgeting skills so you’re better prepared to transition to a credit card.
- You want to earn travel rewards. If you’re debating credit card vs. debit card and are focused on travel, consider that credit card rewards programs may offer robust rewards in a specific category, like travel, Stallworth says. While it’s always important to read the fine print (so you’re not paying more than you intend in fees or interest rate charges just to get rewards), you could find a credit card that offers opportunities to earn free flights and pay less for checked baggageâjust for using the card regularly.
How to use both cards to maximize your finances
Now that you understand which circumstances might be best to use a credit card vs. debit card, you can make the point-of-purchase decision of “When should I use credit vs. debit?” a little easier. It really depends on the goals you have laid out for your personal finances.
Get comfortable using both financial tools for their respective features. But be sure to stick to your budget, and don’t accidentally overspend from your bank account or charge more than you can afford to pay in full by your credit card’s monthly due date. When you learn to confidently use both of these cards to your advantage, you can enjoy all the various perks and protectionsâtimes two!
1 Outgoing wire transfers are subject to a service charge. You may be charged a fee by a non-Discover ATM if it is not part of the 60,000+ ATMs in our no-fee network.
2 ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as VenmoÂ® and PayPal, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.
The post The Difference Between Credit Cards and Debit Cards: Explainedâââ appeared first on Discover Bank – Banking Topics Blog.
A CIT Bank Savings account will help you boost your savings, earning 20 times more than what a traditional bank account will offer you.
If you have a regular checking and savings account at your local bank, you may notice that your rate on the savings account is less than a tenth of a percent.
You can keep your savings account at your local bank if you choose to. But you don’t have to.
Instead of getting crummy interest rates, you can switch to or open a CIT Bank savings account.
CIT Bank savings accounts are offered online, where you can earn a competitively high yield.
|*TOP CIT BANK PROMOTIONS*|
|CIT Bank Money Market||1.00% APY||Review|
|CIT Bank Savings Builder||0.95% APY||Review|
|CIT Bank CDs||0.75% APY 1 Year CD Term||Review|
|CIT Bank No Penalty CD||0.75% APY||Review|
CIT BANK: AN OVERVIEW
In brief, CIT Bank is an online-only bank. That means, there is no local branch.
There are no ATMs. You will perform every transactions online. However, the bank does not charge its customers when they use another bank’s ATMs.
And if the bank charges you a fee, CIT will reimburse you up to $15 every month.
The bank currently offers some of the highest interest rates on its savings accounts and its other products, such as CDs, checking account and money market account.
Lastly, there no are no account maintenance fees on any of the bank’s products.
HOW MUCH CAN I EARN WITH A CIT BANK SAVINGS ACCOUNT?
With a CIT Bank savings account, you will earn a 0.95% APY through the Savings Builder option and 1.00% APY through Premier High Yield Savings account.
But certain conditions will apply (more on this below).
CIT Bank Savings accounts offers interest rates that are 20 to 25 times higher than what a traditional, brick and mortar bank is currently offering.
Because of that big difference between CIT Bank’s high-yield savings accounts between a traditional savings account, you’ll earn more money.
For example, if you have $5,000 in a traditional savings account with a 0.10 APY%, you would get just $5 in a year.
But if you have that same amount of money in an account earning 2%, you return will be $100.
CIT Bank offers two savings accounts options: 1) the Savings Builder and the Premier High Yield Savings account.
Both accounts require a minimum opening deposit of $100. But neither has monthly maintenance fees.
Here’s a quick table of CIT Bank two savings accounts.
|Savings Builder||$100 or $25,000||0.95%|
|Premier High Yield Savings||$0||1.00%|
The Savings Builder:
The CIT Bank Savings Builder will allow you to earn 0.95% APY, but only if you make at least one monthly deposit of $100 or more.
Or, if you keep a balance of at least $25,000. Interest in this high-yield savings account compounds daily to boost your earning.
Click here to learn more about CIT Bank’s Savings Builder.
The Premier High Yield Savings account:
With this account, you will earn 1.00% APY regardless of your account balance or monthly fees.
Interest in this savings account is also compounded daily to maximize your earning.
PROS AND CONS OF CIT BANK SAVINGS ACCOUNTS
- No monthly fees on deposit accounts;
- a minimum deposit requirement of $100;
- Refunds ATM fees — because the bank does not have ATMs, it does not charge customers who use another bank’s ATMs. And if there is a fee, CIT will refund you up to $15 per month.
- No bank branches or ATM;
- No 24/7 customer support — as with all high yield savings accounts, most inquiries are handled online. While live telephone is available, hours are limited.
HOW TO OPEN A CIT BANK SAVINGS ACCOUNT?
To open an account, simply go to the CIT Bank homepage, and create the account online.
You’ll need to provide your name, address, phone number, and ID. You’ll also need to provide your social security number.
Note that CIT does not have any branches. Everything must be done online.
If you’re opening a CIT Bank Builder Savings account, you will need to make an initial minimum deposit of $100.
You will also need to make monthly deposit of $100 to take advantage of the 0.95% APY. Or, you will need to have a $25,000 balance.
If you’re opening the Premier High Yield Savings account, you’re not required to make any initial minimum deposit.
So, you can open the account first and fund it later.
HOW MUCH TO KEEP IN YOUR CIT BANK SAVINGS ACCOUNT?
How much should you keep on your savings account will depend on your savings goals.
If you’re opening the account to serve as an emergency fund, experts have recommended to keep at least three to six months of living expenses.
That money is reserved in case of an emergency like a loss of job, you fell ill, or need money for a major car repair.
But one thing you should know is that deposits at any banks are covered by the federal government up to $250,000.
So if you have more than that, you should split your money into multiple accounts.
WHO IS A CIT BANK ACCOUNT GOOD FOR?
A CIT Bank savings account is good for anyone who:
- Wants to earn a higher yield on the savings accounts;
- Does not mind having their banking online;
- Can commit saving at least $100 every month; or
- Can carry $25,000 balance.
WHAT OTHER PRODUCTS CIT BANK OFFERS?
In addition to the two savings accounts, the bank also offers a checking account, money market accounts and Certificate of deposits (CDs).
The checking account is called “eChecking.” It is the only account the bank offers. There is no monthly fees and you can open the account with as little as $100.
Note that CIT Bank does not have ATMs. But the bank does not charge you for using another bank’s ATM.
And CIT will refund you for ATM fees other banks charge you.
CIT bank also offers one money market account. This money market account has no monthly fees and requires an opening minimum deposit of $100.
CIT Bank has several terms CDs, which range from 6 months to 5 years.
There is also a no penalty 11-month term, where customers can withdraw money with no penalty.
CIT Bank also offers jumbo CDs, ranging from two to five years. You can open a term CD, including the no-penalty CD, with a minimum of $1,000.
The Jumbo CDs require a minimum of $100,000.
Click here to learn more about CIT Bank CDs.
THE BOTTOM LINE
A CIT Bank savings account, is a high yield savings account, where you can a higher yield than regular savings accounts.
You will earn a 0.95% APY through the Savings Builder option and 1.00% APY through Premier High Yield Savings account.
So, whether you’re saving money for an emergency fund, saving money to go on a vacation, or saving money to buy a house in the next few years, CIT Bank is the right bank for you.
Speak with the Right Financial Advisor
If you have questions about high interest savings accounts, you can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
The post CIT Bank Savings Account: How Much Can You Earn appeared first on GrowthRapidly.
To become a Dasher or Uber Eats driver, you have to meet a baseline of requirements. Some are vehicle related and some are age and experience related.
The activation kit includes a Dasher manual, a hot bag and a credit card, which is used to pay for orders. Once you receive and set up the card through the app, you can start accepting orders.
During the pandemic, these services have seen demand like never before. For customers, the apps make ordering food from just about any restaurant as easy as opening their smartphones. For drivers, itâs almost as easy to land a delivery job hawking food from local eateries.
DoorDash vs Uber Eats: The Top Food Delivery Apps Duke It Out
This oneâs easy. Both services are available in most big cities in all 50 states.
Glassdoor review: 3.9 out of 5.
Previously, DoorDash and Uber Eats ran driver support centers in major metro areas of most states. In 2020, many of these centers closed due to the coronavirus. Some still exist, but neither company offers a comprehensive, public list of remaining locations.
Round 1: App Reviews
All Uber drivers receive discounts for vehicle maintenance and phone service plans. Uber also partners with Stride Health to provide health plans and tax advice. Drivers automatically receive supplemental auto insurance, which covers up to million in damages. Thereâs a ,000 deductible before benefits pay out.
DoorDash Driver (Dasher) Reviews
The general premise of the two apps is almost identical: Customers place food orders at local restaurants. The apps alert drivers in the area with the order details. The first driver to accept the order picks up the food and drops it off to the customer. Simple enough, right?
If youâre a current rideshare driver for Uber, itâs easy to start delivering with Uber Eats. You simply opt in to Uber Eats orders through the driver app and start delivering without any additional screening.
Dashers report earning between and an hour depending on location, but those earnings arenât guaranteed. Pay is based on how many orders you accept per hour and how much customers tip you. DoorDash pays weekly through direct deposit, or you can access your earnings early through Fast Pay, for .99.
Feedback from Dashers is overall mixed, but thereâs a clear preference for the iOS version of the app. Trends in negative reviews across all platforms show that many drivers have trouble with glitches and crashes, especially Android users, and that the nature of the work takes a toll on their vehicles. Many negative reviews mention that DoorDashâs strict performance metrics are a hassle.
Uber Driver Reviews
To make automobile deliveries, the minimum age requirement is based on your local jurisdiction, plus at least one year of driving experience. Vehicles must be no more than 20 years old. Drivers must be properly insured and can use bikes and scooters in certain markets. The age requirements are higher for those who prefer two wheels â 18 for bicycles and 19 for scooters.
Promotional offers are popular with both DoorDash and Uber, but theyâre temporary and vary by location. Aside from sign-up bonuses and referral codes, here are a couple perks that are here to stay.
The two apps handle pay a little differently, both in how you get paid and how you pay for customersâ orders when you pick them up. Neither company offers guaranteed wages (unless you live in California).
Uber Pro perks have recently expanded to all of Uberâs markets across the U.S. Only top-rated drivers receive Pro perks like tuition and gas reimbursement, and the program is designed for Uber drivers primarily, not Uber Eats drivers.
But before you download your next job, take some time to review the key differences between DoorDash and Uber Eats so that you can make the most of your delivery gig.
Round 2: Job and Vehicle Requirements
You can sign up to become a Dasher on the driver app. Youâll have to consent to a background and motor vehicle check (and pass both). They could take as little as a few days, but err on the side of a week or two.
When picking up orders, you may be required to pay for the order using the company red card from your activation kit.
Round 3: Sign-Up Process
And if itâs too close to call, you can always sign up for both to see which one suits you better.
Several differences are worth noting, though. Some minor and some major. We took a deep dive into those differences, looking at pay, vehicle and job requirements, available locations, driver reviews and more to help you make an informed decision before you start delivering.
The decision goes to our judges. (Thatâs you.)
Ding! Ding! It was an even match-up. Uber Eats and DoorDash were neck and neck throughout. No knockout punches. A good few jabs by DoorDashâs insurance coverage and grocery options and a couple of hooks by Uberâs overall ratings and ability to switch to ridesharing.
Workers reviewed DoorDash more than 760,000 times.
Check out how this food delivery driver may ,000 in one month.
Because the apps are so popular, theyâve amassed more than 4.1 million driver reviews. Both companies require their drivers to use different apps than customers, a huge perk when trying to get a sense of driversâ perspective. Worker reviews from Glassdoor are also included.
Round 4: Pay and Tipping
Glassdoor review: 3.7 out of 5.
Trends in negative delivery reviews on Glassdoor indicate GPS issues and trouble contacting customer service. Several drivers mentioned problems with promotion and surge pay (bonus pay during in-demand times). Negative reviews regarding vehicle wear-and-tear are common.
Uber Eats drivers get a variety of discounts and may be eligible for Uber Pro perks.
If you drive for both Uber and Uber Eats, your food deliveries may apply to Uber Pro, but Uber-Eats-only drivers arenât eligible.
More than 3 million drivers reviewed Uber. A caveat worth noting is that Uber has one driver app. That means itâs hard to get the opinions of only Uber Eats drivers because general Uber app reviews are mixed in. Overall, reviews are positive.
For drivers new to Uber, you can sign up on the website or through the driver app. Because of the stricter vehicle requirements, the application requires more detailed information on your ride. A background check is also required, which may take three to five business days to process.
To qualify as a Dasher you must be at least 18. Dashers need to have a valid driverâs license. There are no car requirements, but auto insurance is required. In some markets you can make deliveries on scooters, bicycles and motorcycles.
Round 5: Available Locations
Depending on your location, you can expect to earn to an hour on average. Again, those wages arenât guaranteed because your earnings are based on orders and tips. With Uber Eats, you pocket 100% of your customersâ tips. You get paid weekly via direct deposit, or you can pay a fee to access your earnings early through Instant Pay for 50 cents.
App Store (iOS) review: 4.6 out of 5.
Final Round: Additional Perks
While DoorDash doesnât offer health insurance, the company does partner with Stride Health, which provides free health care advising and assistance to Dashers who need help finding affordable insurance plans.
After passing the checks, youâll need to select what type of âorientationâ you want. The pandemic paused in-person orientations. Depending on your market you may need to request an âactivation kitâ instead. Receiving your activation kit may take an extra couple of weeks, according to driver reviews.
For better or worse, apps like DoorDash and Uber Eats have disrupted the food-delivery industry. Since their launch in 2013 and 2014 respectively, restaurants across the country have outsourced delivery services to independent drivers who use the apps to make extra cash.
As of Fall 2019, the company switched to a payment model where Dashers earn a higher base pay per order in addition to keeping 100% of their tips. Previously, a customerâs tip would subsidize the Dasherâs base pay.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
After the background check clears and your application is approved, youâre free to start taking orders. No orientation or additional equipment is needed.
Dashers also get supplemental auto insurance and occupational accident insurance for accidents or injuries that fall outside your current auto insurance. The insurance plan covers up to million in medical costs, a weekly payment of 0 for disabilities and 0,000 to dependents for fatal accidents. Coverage is automatic. There are no deductibles or premiums.
Google Play (Android) review: 3.8 out of 5.
Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, remote work and other unique ways to make money. Read his âlatest articles here, or say hi on Twitter @hardyjournalism.
Final Decision in DoorDash vs Uber Eats
A few perks unique to DoorDash include grocery delivery options, automatic insurance coverage and health care services.
You wonât be involved in the payment process for food orders. Partner restaurants are reimbursed directly by Uber.
After youâre screened and accepted as a Dasher, you can choose to deliver food in any city where DoorDash operates, meaning there are no hard location requirements. The company also launched grocery delivery services in some Midwest and West Coast areas.
Becoming a delivery driver for DoorDash and Uber Eats is simpler than landing a part-time job. You can complete the entire process from your smartphone or computer.