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Consolidating credit card debit

If you can’t pay in full, aim to pay more than the minimum whenever possible.

(Legally, that minimum cannot be more than $10.) Cons: For some people, cash can “burn a hole” in their wallets: The temptation can lead to undesired spending.Knowing the pros and cons of different payment options can help you manage your spending and maximize your budget’s potential.The material provided on this website is for informational use only and is not intended for financial or investment advice.This chip technology makes it harder to steal your information.Cons: Carrying a balance on your credit card will result in interest charges and can harm your credit score if the balance gets too big.Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided.

Please also note that such material is not updated regularly and that some of the information may not therefore be current.

In addition, if cash is stolen, it’s likely gone for good.

If these factors are a concern, consider using a debit or credit card, which in most cases offer you protection against fraudulent use.

When the purchase clears, the held funds are released, but you’ll want to make sure that you have enough money in your account to cover any holds.

These days, you may be able to pay for a purchase using your smartphone—some phones allow you to buy things by tapping your phone on a terminal at checkout.

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.