The cards in your wallet may look the same, but there actually are some major differences between credit and debit cards. Understanding the difference between these two payment methods can help you avoid financial issues and even earn some extra money in the process.

Application

A debit card or check card is, essentially, a digital checkbook. It is tied directly to your financial account. When you make a purchase, it is subtracted from the amount you have. Most banks and credit unions will give you a debit card to access the funds in your checking or savings account. You can also purchase prepaid debit cards with a specified amount that you can reload, as needed.

Credit cards allow you to borrow money from the card issuer, which means that your application for a card must be approved by the financial institution. If you have bad credit or no credit, you might not be able to get a credit card, or your interest rate could be higher. Credit cards also influence your credit score — for better or for worse.

Utilization

Most debit cards require a PIN to make a purchase. This is a special code that authorizes the merchant to deduct money from your account. Normally, the only fees you have to worry about with a check card are overdraft fees — which occur when you try to spend more than you have. America First offers a free line of credit with our checking accounts to help you avoid costly overdraft fees.

Larger purchases with a credit card require a signature. And since a credit card is a loan, you will sometimes have to pay annual fees, over-limit fees or late-payment fees. However, credit cards also come with perks such as cash back, discounts and travel points. In fact, because of those types of reward programs, if you use your credit card wisely and pay the required balance each month, you can actually profit from your purchases.

Protection

A debit card offers less temptation to spend more than you have because it’s linked to your bank account. However, this also means that if if your card is stolen and your PIN is compromised, someone could have direct access to the funds in your account. It is important to report lost or stolen credit and debit cards as soon as possible.

If you are responsible in your spending and pay off your balance regularly, a credit card is, essentially, an interest-free loan. Many credit cards offer extended warranties on purchases made with the card. You can also get automatic rental car insurance and life insurance when you use your credit card while traveling.

America First offers zero-liability protection against fraudulent purchases on both our credit and debit cards. We will alert you if we see any suspicious activity on your account and work with you to get problems resolved as quickly as possible. We also offer protective services such as Card Guard® and free identity theft recovery to help you take control and make sure that you feel safe and secure no matter which type of card you’re using.

Priceless weddings can oftentimes end up being, well, pretty pricey. However, it’s possible to create a memorable and beautiful wedding without going into debt. Here are some ways to make your big day special without breaking the bank.

Building a budget

Research the average price of everything you need and want at your wedding. Prioritize your list to determine which elements are most important, what costs less, and which things you can do without.

Vetting the venue

If you’re having a reception, it doesn’t have to be extravagant. Consider an inexpensive location, such as a church hall, the local rec center, a nice backyard, even your home. You can also have the ceremony and reception in one place. Or you can skip it altogether and plan a small dinner with family and close friends.

Considering the catering

Local restaurants are unique and usually more affordable than professional caterers. You can serve fewer courses or choose a different entrée. If children are attending, have dishes like macaroni & cheese or peanut butter sandwiches just be them. They’ll be happier with these options and they’re less expensive!

Finding the flowers

Flowers are usually one of the highest-priced wedding decorations. Instead, use candles or lanterns for your centerpieces or make flowers from fabric or crepe-paper. If you do go to a florist, stay local, choose something in season, and discuss your budget with them.

Inventing the invitations

Rather than hiring someone to design your invitations, look online for customizable designs at reasonable prices. Or create the invites yourself and have an assembly party with friends to stuff the envelopes. Remember, liners and vellum overlays look fancy, but aren’t necessary.

Deciding on the dresses

Check local classifieds to see if there are any used gowns you love. Or think about renting from a bridal shop. You can also look online to make alterations to a dress you have or design one from scratch. Choose a neutral color for the bridesmaids, so they can find something already in their closets.

Hatching the honeymoon

The honeymoon is all about spending quality time with your spouse, so it doesn’t have to be lavish. Try saving on airfare by staying at a nice hotel or resort within driving distance. Make sure you book as early as possible to get the best rates. Wherever you go, let people know it’s your honeymoon, as hotel employees will often go the extra mile to ensure a lovely stay.

America First also offers wedding savings accounts. This are convenient and easy options for your guests and they’ll help you gather resources for your future financial needs as newlyweds.

Having a lot of money can be a burden. People constantly ask you for it, taxes are more complicated and you need a plan for your wealth when you’re gone. If you’re looking for ways to avoid becoming rich, here is some advice on how to not become a millionaire.

Don’t Think Ahead

If you’re not yet a millionaire, don’t make any dramatic changes — just keep on with what you’re doing. Becoming independently wealthy takes effort, so things like writing down your financial goals will only help those who are looking to make their resources grow. And don’t set small, achievable benchmarks either, because you may find yourself unintentionally achieving larger financial goals.

Limit Your Income Streams

You only need one income to get by. Anything else will only increase your earnings. A job and a single paycheck is the easiest way to maintain your savings instead of building them. Rental properties, side businesses and investments are only for people who want to diversify their revenue opportunities and accumulate money more quickly.

Never Invest

Speaking of investing, if you want to avoid becoming a millionaire, you should always keep your money easily accessible instead of making an investment that generates compound interest. With regular contributions to your America First dedicated savings account, for example, your initial investment could grow at a surprising rate with little effort on your part.

Spend It As Soon as You Get It

Saving is the gateway to investing. Decide how you want to spend your paycheck, tax refund or birthday money before you get it. That way, you won’t be tempted to put some away to build a rainy-day fund or contribute to your retirement. In fact, spend more than you have by maxing out your credit cards. Then you’ll continuously be paying off debt and you’ll also lower your credit score, so you won’t be tempted to take out a business loan.

Say Yes to Get-Rich-Quick Schemes

This may sound counterintuitive, but get-rich scams will actually make you poorer. Usually those who offer “exclusive opportunities” to “get in on the ground floor” with a “small initial investment” are the only ones who benefit. There is no fast and easy way to make money — it takes study, dedication and hard work. Losing money, however, is quite simple — especially with a bad investment.

Go It Alone

If you don’t want wealth, don’t ask advice those that are prosperous. Their words might inspire you to achieve success. Watch out for financial advisers, too. Their expertise will only bring you good investments and help you avoid bad ones. If you’re going to prevent yourself from becoming a millionaire, it’s best to be on your own.