Like what you hear? Help us out by writing a review at iTunes. Questions go to money@qdnow.com. Thank you!
Money Girl
082 MG What's In Your Wallet?
Hey, Fidelity. What's it cost to invest with the Fidelity app? Start with as little as $1 with no account fees or trade commissions on US stocks and ETFs. Hmm, that's music to my ears. I can only talk. Investing involves risk, including risk of loss. Zero account fees apply to retail brokerage accounts only. Sell or assessment fee not included. A limited number of ETFs are subject to a transaction-based service fee of $100. See full list at Fidelity.com/commissions. Fidelity brokerage services LLC member NYSE SIPC. After investing billions to light up our network, T-Mobile is America's largest 5G network. Plus, right now, you can switch, keep your phone, and we'll pay it off up to $800. See how you can save on every plan versus Verizon and AT&T at tmobile.com/keepandswitch. Up to four lines via virtual prepaid card, a left 15 days qualifying unlocked device credit service ported 90+ days with device ineligible carrier and timely redemption required. Card has no cash access and expires in six months. Hello, and welcome to Money Girl's Quick and Dirty Tips for a richer life. I'm your host, Laura Adams. Having a debit card in your wallet is a great tool for making convenient purchases. In this episode, I'll discuss the pros and cons of using them and share lots of tips on how to lower their associated risks. Okay, let's start out with the major advantages of paying with a debit card instead of paying with cash, check, or a credit card. Number one, convenience is certainly the number one advantage in my book. You don't have to carry just the right amount of cash, write out a paper check and enter it into a register, or make a credit card payment at a later date. Number two, it takes less time to complete a purchase. Debit cards are accepted by merchants with less scrutiny than our checks or credit cards, and swiping a card is much faster than writing out a check. Number three, it keeps you within budget. When you use a debit card, you're limited to spending the amount of money you have in the associated account. This prevents you from accumulating debt or being charged interest and those annoying late fees from a credit card company. Number four, they're easier to get than a credit card. Most bank checking and savings accounts offer you the option to have a debit card linked to your account without having to complete a lengthy application. Number five, you can easily get cash. You can opt for cash back at most stores or use your debit card as an ATM card at cash machines. On the flip side, here are the disadvantages of using a debit card over other payment methods. Number one, disputed charges can be more difficult to resolve. Since money was spent out of your account at the moment of purchase, you have more risk with a debit card than with a credit card if the item is defective, misrepresented, or never gets delivered to you. Number two, some banks may charge you extra fees. There could be monthly service charges, over-limit fees, per transaction costs, or penalties for dropping below a minimum required balance, that result from using a debit card. Number three, you don't improve your credit score. Building up your credit score is an important consideration for your financial future. Paying bills such as credit card payments on time is the most effective way to increase your rating or to maintain a high credit score. Number four, you can't take advantage of reward points. One of my favorite reasons for using a credit card when making any large purchase is the opportunity to get travel reward points. There are many different types of cards that offer a variety of great incentives. Five, it gives you lower levels of fraud protection. If a thief gets your personal identification number, they could easily empty your bank account. Fraud certainly happens with credit card use as well. However, most credit card companies put a hold on any account that shows unusual activity. And lastly, number six, your potential liability for misuse is unlimited. This contrasts the low risk that comes from misuse or theft of a credit card. It's better over here. AT&T customers switching to T-Mobile has never been easier. We'll pay off your existing phone and give you a new one free, all on America's largest 5G network. Visit T-Mobile.com/carrierfreedom to switch today. Pay off up to $650 if you have a virtual prepaid master card in 15 days, free phone up to $830 via $24 monthly bill credits plus tax, qualifying port and trade and service on Go 5G next to credit required. Contact us before canceling entire account to continue bill credits to credit stop and balance and required finance agreements do. Hey, Green Goblin here. See, you've got a clock drained in your bathroom, watering the sinks, overstaying it's welcome. You're spitting today's toothpaste on top of yesterday's toothpaste. You hope that it go away. Yeah, clocks don't just go away. I make them go away. I'm Green Goblin. The only clog dissolver you need. I'm bleep-free, safety of pipes, and I work. Guaranteed or your money back. Because I never met a clog that was going to unclog itself. Green Goblin, let the goblin get it. I love learning and anything that makes learning easier. If you're a parent and your child needs some homework help, then IXL is a right for your family. IXL is an online learning program for kids covering math, language arts, science, and social studies. IXL has interactive practice problems for topics from pre-K to 12th grade and everything is organized by grade and subject. As kids practice, they get positive feedback, awards, and explanations for wrong answers. IXL figures out what your kids need more help with and recommends more topics to practice. Their videos, lessons, sample problems, and learning games too. One subscription to IXL gets you all subjects and all grade levels. Membership started just $9.95 a month. It's no wonder IXL is used in 95 of the top 100 school districts. I think the positive feedback that IXL gives is really crucial when it comes to learning. So make an impact on your child's learning. Get IXL now, and money girl listeners can get an exclusive 20% off IXL membership when they sign up today at IXL.com/moneygirl. Visit IXL.com/moneygirl to get the most effective learning program out there at the best price. The United States Federal Trade Commission established two acts to address the issue of lost or stolen cards. The FTC website address is FTC.gov. The Federal Reserve Board also has information about credit protection laws on their site at federalreserve.gov. I'll be sure to include a link to all this information in the show notes at quickanddirtytips.com. According to the Fair Credit Billing Act, your maximum liability for unauthorized use of your credit card is just $50. If your card was stolen and you report the theft before any misuse occurs, your liability is zero. If you have the card in your possession but someone stole your credit card number, your liability is still zero. Your liability for misuse or theft of a debit card under the Electronic Fund Transfer Act is very different. It completely depends on when you report the loss. When it comes to debit card fraud, please remember that you must act very quickly to give yourself as much protection as possible. If you report a debit card loss before it's used without your permission, your liability is zero, just like with a credit card. But if you wait to report a stolen card or theft of your debit card number, your financial risk increases as follows. Your loss is limited to $50 if you notify your card issuer within two business days after discovering your loss. Your loss is limited to $500 if you report it within 60 days after your account statement was mailed to you. But your liability is unlimited if you missed the 60-day deadline. You could lose all the money in the account linked to your debit card plus any overdraft fees and penalties. So what can be done to lower the risk of using a debit card? Well, I strongly recommend using debit cards only for smaller purchases from trusted merchants. It's a good idea to never let the card leave your site during a purchase. Illegal electronic skimmer devices are very small and can easily be hidden and quickly used by thieves to copy your information. When making a big ticket purchase or buying over the phone or internet, always use a credit card. Here are some additional tips that can save you lots of potential frustration and grief. Sign the back of your cards as soon as you receive them. Don't carry cards with you that you will not need. If possible, carry cards separately from your wallet. Never give a card number over the phone unless you really trust the person or company. Never email a card number to someone or give it in response to an email solicitation. Never sign a blank credit or debit charge slip. Never loan a card to anyone. Draw a line through the blank spaces above the total on any credit or debit slips to avoid them being altered. Make your personal identification number something unique that a smart thief couldn't easily figure out. Never create a personal identification number that match your address, birthday, social security number, phone number, or any other number that could possibly be linked to you. Never give your personal identification number to anyone and do not keep it with your debit card. Keep your debit card receipts in a safe place until you can match them against your account statement each month, then destroy them. Check your homeowner or tenant insurance policy to find out if it includes any liability for card fraud. I want to say a big thank you to Grammar Girl for bringing me into the QD network and another thank you to Andrew Horowitz for doing such a great job as guest host. Cha-ching, that's all for now. I'm glad you're listening and I hope to read your comments and money questions at money@quickanddirtytips.com. If you forget my email address, just go to quickanddirtytips.com for all contact information and show transcripts. Courtesy of Money Girl, your guide to a richer life. Canva presents your work horoscope for this week. Deadlines are in retrograde, which we all know can bring some intense energy. Our advice, fend off this forecast with Canva, like Canva whiteboards to counter creative blocks and Canva Docs for clarity and communications. If you have any sales deals coming through, results will be in your favor with Canva presentations, manifesting many wins for you. It's a great week to love your work at canva.com. Earning your degree online doesn't mean you have to go about it alone. At Capella University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals, to academic coaches who can help you form a plan to stay on track, we care about your success and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. [BLANK_AUDIO]