Beginners Guide to Use Plastic Money

With the increase in plastic money, most people have become comfortable using credit and debit cards. But for beginners, it can be a bit intimidating. This article discusses how credit cards work and their use.

What is plastic money?

You can use plastic money to buy things you need or want. A credit card is your go-to option if you are short on cash or saving. It works everywhere: you can pay for food in restaurants or drinks at bars. You can also use your plastic money to pay for public transportation like buses and trains, taxis, or even Uber rides!

What are the different types of plastic money?

  • Credit Card: A credit card is a payment method where you pay for the goods or services first, and then your bill is sent to you at the end of each month, where you have to pay them off in full.
  • Debit Card: A debit card allows you to use your money from your bank account directly from the store’s checkout counter. Whenever a purchase is made, it withdraws money from your checking account.
  • Prepaid Card: It works as any other type of plastic money but with one difference; instead of using it as a direct deposit into bank accounts, prepaid cards are purchased with cash or credit/debit cards only (no checks).

Why should you choose plastic money?

Plastic money is easy to use and carry and is an excellent alternative for people worried about carrying their cash to the bank. When you use plastic money, you don’t have to worry about losing your wallet or having someone steal it. It’s also convenient because you can purchase items using your card wherever there is an ATM or bank with a credit card facility.

You should choose plastic money because it’s safe and convenient. There are many benefits of using plastic money:

  • You are less likely to lose your cash than when carrying around bills in a wallet or purse
  • Your account information isn’t printed on the physical card like a checkbook would be, so anyone who steals it won’t have access to that data
  • Credit cards offer much more security than debit cards because they require an additional PIN code to enter before making the purchase. 

How does Plastic Money work?

“Credit cards offer a line of credit that you can use for various purposes, including making purchases, completing balance transfers, and taking out cash advances. You can borrow up to your credit limit and owe at least the minimum payment each month. But plastic money is different from cash in some ways, too,” say SoFi experts. 

It can be used by anyone with an account at the bank where the card was issued. For example, the person who owns the card can give someone else permission to use their plastic money (this is called “authorization”). That person will have to show identification for authorization for them to be approved for a purchase on your card account.

Plastic money is a great innovation that has helped reduce the need for cash payments. It enables you to make transactions from one place and offers convenience in terms of spending and saving. However, you can overcome these issues by using your card wisely.

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