Another popular option is payment via apps, digital wallets or other programs.These payment methods usually link to your credit card, debit card or your bank account.Like with credit cards, federal law protects your liability for fraudulent purchases if your card is stolen, though the specific protections between credit and debit cards are different.Some banks allow you to lock your debit card if it gets lost or stolen.Knowing the pros and cons of different payment options can help you manage your spending and maximize your budget’s potential.
For some purchases, you may be required to use a card—things like booking a hotel room or rental car in advance.
In addition, many credit cards offer rewards programs that allow you to earn points that are redeemable for things like travel and merchandise; other rewards programs offer you cash back.
You’re also protected if your credit card is stolen.
If you can’t pay in full, aim to pay more than the minimum whenever possible.
Pros: Like credit cards, debit cards can be used to pay for things in cases where cash is not accepted. The money you spend comes directly out of your checking account, making it a great way to avoid spending more money than you have available.