Using a debit card is a great way to keep track of your spending and to avoid having to carry around a checkbook. Many people do not realize that there are different types of debit cards. The most common ones are usually connected to a bank account but there are also cards that can be used without a checking or savings account.
You can make your life more convenient by using a debit card with direct deposit even if you do not have a bank account. Standard debit cards used to be known more commonly as check cards because they work in the same way that a checkbook does. A debit card is linked to a bank checking account. This means that every time you use your debit card to buy something, money is withdrawn from that account to pay for your purchase.
A debit card is not the same as a credit card, there are notable similarities and differences between these two types of cards. Debit cards do not allow you to build a credit history like credit cards.
So if you are planning to buy a house or do anything else that requires a decent credit score, you may want to think about signing up for a credit card as well as a debit card. You can even link your credit and debit accounts online so that you can use your checking account to pay off your credit card every month.
In the same way that you can receive a monthly credit card statement from your bank, you can also download or have monthly debit card statements sent to you.
However, unlike with a credit card statement, you do not need to make any payments for your debit card statement because it is simply a record of items or services that you have already paid for.
Debit card statements are particularly useful to keep track of how much money is in your checking account so that you do not accidentally spend more money than you have available. If you do happen to use your debit card for a purchase that you do not have enough money for in your account, then you will be charged an overdraft fee from your bank. These fees add up over time so it is best to try to avoid them altogether. Aside from keeping track of your monthly checking account statements, another way to keep track of what you are buying with your debit card is to sign up for online banking.
Access your paychecks even faster by setting up a direct deposit debit account.