Credit Cards for Travel and Expats [A Series for the Financially Challenged] 😃 Part 1 Have you ever wondered what is the credit card with the best rewards? And just as importantly, should you choose a debit card instead? This series will address these and many more questions as we look at Credit Cards and Debit Cards for Expats. Credit Cards and Debit Cards Look Like Identical Twins.
Each have 16-digit card numbers, expiration dates, and personal identification number (PIN) codes.
But that's pretty much where the similarity ends...
You see, Debit Cards allow you to spend money by drawing on funds that you’ve ALREADY deposited in your bank.
Credit Cards, on the other hand, allow you to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash.
If you’re anything like most expats, you probably have, at least one credit card and one debit card in your purse or wallet. And Let’s Face It...
The convenience and protection they give you are seriously hard to beat.
But they have important differences. That Directly Increase Your Financial Freedom... Or, Quickly See You ‘Drowning in Debt!’.
With that in mind, let’s take a closer look at
Credit Cards…
Your Credit Card is a card issued by a financial institution, typically a bank... And Here’s The Kicker…
As a Cardholder, You Agree to Pay the Money Back, with INTEREST according to the institution's terms...
There Are 4 Kinds of Credit Cards.
1. STANDARD CARDS. These simply extend a 'Line of Credit' to their users.
2. REWARDS CARDS. These Offer Cash Back, Travel Points, or Other Benefits to Customers.
3. SECURED CREDIT CARDS. A Secured Credit Card is a credit card that requires you to place a 'Refundable Security Deposit' the amount of which becomes your Credit Limit. This Stops You From Spending More Than You Can Afford to Repay. Secured Credit Cards also report information to the major credit bureaus every month, just like unsecured cards that is held by the issuer as collateral.
4. CHARGE CARDS. A Charge Card is a type of credit card that requires 100% Payment each billing period. They Don't Allow Unpaid Balances. to carry over from month to month.
As a Credit Card User, You Can Enjoy Cash, Discounts, Travel Points... Simply by Using Rewards Cards.
Folks who pay off their cards in full [and on time] every month can profit substantially by running their monthly purchases and bills through rewards cards.
But Please Note... You should ONLY do this if you're really diligent when it comes to setting a budget and sticking to it. Credit card use is also reflected on a consumer’s credit report, which allows responsible spenders to raise their scores with a history of expenditures and timely payments.
These cards may also provide additional warranties or insurance for items purchased—above those the retailer or brand is offering.
If an item bought with a credit card becomes defective... after the manufacturer’s warranty has expired, for example, it is worth checking with the credit card company to see if it will provide coverage.
4 THINGS TO REMEMBERFROM THIS VIDEO... 1. Credit Cards Give You Access to a Line of Debt Issued by a Bank. 2. Debit Cards Deduct Money Directly From Your Bank Account.
3. Credit Cards Offer Better Consumer Protection Through Warranties and Fraud Protection But Are Costlier.
4. Debit Cards Offer Less Protection, But They Have Lower Fees.
5. Newer Debit Cards Are Starting to Offer More Credit-Card-Like Protection, while many credit cards no longer charge annual fees. In the Next Video in This Series, Well Take a Closer Look at Choosing the Best Credit Card. And Then We'll Cover Debit Cards.
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