With credit cards being so accessible may people wonder if they should use their checking account or credit card to purchase items. For many people, using a checking account can help them to be more fiscally responsible and avoid getting into debt. Here are some things you need to know about your checking account so you can get the most benefits out of it.
1. Link Your Checking Account To Your Savings Account
One great feature that many banks offer is to link you checking account to your savings account. What this allows you to do is protect yourself from bouncing a check or paying fees for insufficient funds. If you accidently let your checking account get too low and write a check or use your debit card you could get a hefty fee from both the place that accepted the check and your own bank. This is why it is safer to have your two accounts linked to make sure that you don't have insufficient funds.
2. Use Direct Deposit
Another great feature of a checking account is that you can use direct deposit. You can directly deposit funds from your work, other individuals, and stores right into your account. The great thing about this is that you avoid the danger of a check getting lost in transition or it going to the wrong place. This is a safe way to make sure that you safely keep your money where you want it.
3. Debit Cards Help You to Avoid Debt
According to research in America they have determined that the average amount of credit card debt of Americans in 2015 is over $7,000. Getting into consumer debt is dangerous and can negatively impact your credit score, your ability to get another loan, and could even cause bankruptcy down the road. This is why using a checking account is such a great idea. When you use your debit card you immediately draw money from your account. It is as if you are paying with hard cash every place you go. This prevents you from spending money that you don't have and staying within your budget. For many individuals, using a debit card allows them to meet their financial goals and avoid getting into frivolous debt.
These are just a couple of the many benefits and things you need to know about using a checking account. If you don't currently use a checking account you should consider opening one.