Did you know over 189 million Americans have at least one credit card?
When you think about getting a credit card, you might associate it with debt or overspending. While cash is still king, oftentimes, you need a credit card to make purchases, especially online.
The good news is that you don’t have to rely on a credit card as a form of payment.
Read on to learn about these six great credit card alternatives.
1. Debit Cards
If you want the convenience of paying with a credit card, but you worry about getting into debt, a debit card is the next best alternative.
The best thing about debit cards is that they’re widely accepted, and most of them have some form of consumer protection.
Also, with a debit card, you don’t have to worry about overspending and going into debt since it’s directly linked to your checking account.
2. Prepaid Debit Cards
When you don’t have a bank account or credit card, a prepaid debit card is the next best alternative. Prepaid debit cards work similarly to credit cards, but your spending power depends on how much money you load into the card.
With a prepaid debit card, you don’t have to worry about charging more than what you can afford.
3. Personal Loans
If you’re in need of a line of credit, but you worry credit card interest rates are too high, a personal loan might be a great alternative.
Some personal loans offer lower interest rates than a credit card, and you can use them to pay for larger expenses, such as a vacation, wedding, or remodeling project in your house.
See more here to learn about the benefits of personal loans as credit card alternatives.
4. Secured Credit Card
A secured credit card is another great alternative to a traditional credit card when you don’t have excellent credit. In order to obtain a secured credit card, you will have to put down a deposit.
Your credit limit will depend on the amount you put down to obtain a secured credit card.
Secured credit cards are great to help you build your credit score. Because they work like a regular credit card, the creditor will report the payments you make to the credit bureaus, which will help you increase your credit score.
5. Activate Overdraft Feature
While most people want to avoid having their accounts overdrawn, some banks might let you borrow a little more using your checking account.
Talk to your bank about the possibility of adding an overdraft feature to your account. You will be able to make purchases even if they’re higher than your balance without your purchase getting declined.
6. Third-Party Payments
Nowadays, you don’t need a credit card to make online purchases. You have the option of using third party payments such as PayPal, Apple Pay, Google Wallet, and more.
Try These Credit Card Alternatives
Now that you know about these credit card alternatives, you can find a secure way to make payments that best works for you.
Some of the best credit card alternatives include prepaid credit cards, third-party payments, secured credit cards, and debit cards.
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