MoneyLife

What is a Digital Wallet and How to Find the Right One For You

By Jacinta Sherris

Tired of flipping back and forth between your banking and budgeting apps? Checking up on your financial situation takes a lot of time, not to mention nearly ten percent of your phone’s battery.

Why not get a digital wallet instead? Maybe you’ve heard of a digital wallet, but you’re wondering, “Exactly what is a digital wallet and how does it work?” 

Think of it as a one-stop shop for everything you need to manage separate bank accounts. We’ll answer all your most pressing questions like “What is a digital wallet?” and we’ll also go over steps to find the right way to manage your finances. 

What is a digital wallet?

A digital wallet is an app that gives you a complete view of your finances. Just imagine your banking, budgeting, investing, and spending tools all in one place. You can take care of your daily money management tasks without having to switch between multiple apps.

Digital wallets offer tools that allow you to track your spending, manage your money, make transfers, and more. This eliminates the need for multiple apps on your phone or computer, saving both time and hard drive space.

Some digital wallets provide services that go beyond day-to-day money management. It used to be common to only see checking and savings account balances on your wallet. Now, many wallets let you check your credit score and transfer money. The best wallets even give you access to investing tools and crypto-wallets, as is the case with MoneyLion, America’s most powerful digital bank.

You may have between four and five different money management apps on your phone. It’s likely that you have an app for your individual savings account, checking account, and credit monitoring service. When you choose a digital wallet, you’ll only need to remember a single login.

What does the best digital wallet have?

There are now more digital wallets available than ever before. Unfortunately, not every digital wallet is created equally, and some have more features than others. Here are some of the things you should look for when you decide on a wallet.  

Banking, savings, investing and credit all in one place

You probably have two separate bank accounts: a bank account and a savings account. Bank accounts give you fast access to your money, and they’re designed for use almost every day. Savings accounts hold your money for the long run. 

One of the best ways to manage your money is by dividing your bank and savings or investing accounts. You can spend your bank account balance between pay periods, only dipping into your savings or investments in an emergency. Choosing a digital wallet that allows you to view all your accounts in the same place will give you a total picture of how much money you have overall.

It can also prevent you from receiving an overdraft on your bank account, as well as keep you on track toward your savings and investing goals. If you’re looking to eliminate overdraft fees altogether, look no further than a bank account with MoneyLion. It will allow you to make easy transfers between separate accounts as well. 

Track your spending and bills

Do you know how much money you spend at restaurants every month? How many streaming services are you subscribed to? And how much you’re paying for each of them? Whether you earn $100 a day or $100 an hour, budgeting is always a good idea.

Your digital wallet should help you formulate a budget and balance both your spending and your savings. A good digital wallet will show you when you can expect to receive your next payday and how much money you have left in your budget for different spending categories.

The best digital wallets don’t just show you how much you’re spending. They also help you keep up with your bills and expenses as well. Digital wallets like MoneyLion allow you to link your bills to autopay, so you’ll never have to worry about missing a payment due date. 

This allows you to avoid expensive late penalties and even improve your credit score over time if you’re paying back a loan or credit card. MoneyLion offers 0% APR Instacash advances, so you can top your account off in a hurry if a bill is due soon.

Credit score services

Financial health doesn’t just mean managing your money between paychecks. It also requires that you keep track of your payments and watch your credit score. A great credit score can unlock future opportunities, so look for a digital wallet that allows you to view your score as often as you want to. 

You may also want to look for a digital wallet that offers direct access to your credit reports and free credit monitoring tools. The best digital wallet will also help you increase your score by offering tips and providing a more concrete plan to improve your score.

Beware: not every free credit score is actually free. Some digital wallet providers advertise free credit scores but they still make you apply for a credit card with high-interest rates in order to get the free scores. Don’t fall for these traps. 

An intuitive and easy-to-operate mobile app

With all of these features and more, it can be easy for a digital wallet to become cluttered and hard to understand. Look for a digital wallet that offers you easy access to your money in a clean, intuitive way. 

The best digital wallets are available on both iPhone and Android devices. When you download a digital wallet, look for clearly labeled tabs and sections. If you’re having trouble understanding what’s where, you might want to consider another option.

If you’re a visual learner, you may also want to look for a digital wallet that uses the power of graphic design to help you analyze your spending habits. Some digital wallets, like the one from MoneyLion, include a credit meter that tells you how close to the ideal score you are. 

It also provides bar graphs that show you where you’re spending most of your income. Digital wallet manufacturers make use of numerous graphics to make financial health more fun! 

Managing your expenses with MoneyLion’s digital wallet

MoneyLion offers a digital wallet that offers unique perks and great features. Here are more of the details. 

Debit card

Forget high-fee checking accounts. MoneyLion offers accounts with no hidden fees. You’ll also get a premium debit card when you open an account with MoneyLion. And what’s better? You can access cashback rewards for everyday spending on your MoneyLion debit card. MoneyLion believes that cashback rewards aren’t just for credit cards

Managed investing

Everyone has future financial goals. Whether you’re saving up for a new car or you’re getting ready for retirement, investing makes it possible for your money to grow over time.

However, if you’ve never invested your money before, the entire process can be intimidating and confusing. MoneyLion offers managed investing through its MoneyLion digital wallet. Create your account, choose your risk tolerance, and schedule your deposit. MoneyLion’s financial experts will handle the rest and put your money to work for you. 

0% APR cash advances and credit building loans

Need a loan? You can get a MoneyLion Credit Builder Plus membership with fast access to Credit Builder loans worth up to $1,000. Paying back your personal loan on time can also increase your credit score. 

The majority of MoneyLion members who paid back their personal loans saw their score increase by over 42 points in just 60 days. MoneyLion also offers instant access to 0% APR cash advances, so you can get cash in a hurry to pay a bill or enjoy a well-deserved night out!

Cryptocurrency 

Cryptocurrency is the latest phenomena to take the financial world by storm. MoneyLion makes buying and selling cryptocurrencies, like Bitcoin and Ethereum, easy and accessible to everyone. The best part is that you can even earn crypto through MoneyLion’s very own crypto rewards program! Learn more here

Credit monitoring

Trying to increase your credit score? MoneyLion can give you a hand with credit tracking and provide advice that you can use to boost your score. Check your score right from the app without lowering your score. 

Fraud protection

If you lose your debit card or someone steals it, you can put a freeze on your account through the MoneyLion app. You’ll also have access to 24/7 fraud protection and real-time alerts. These features help you catch instances of fraud before they become bigger and more expensive problems.

Get your finances in order with MoneyLion

A digital wallet is a convenient way to hold all of your information in one place. But it can also be a great learning tool to help you budget better while increasing your credit score. 

After you open your digital wallet, take advantage of every budgeting and bill alert feature possible. Over time, you may see your credit score rise, and you’ll likely notice you have more money at the end of each week.

Are you ready to get on the path to a healthier financial future? There’s never been an easier or better time to open an account with MoneyLion. We offer all of the must-have features in our digital wallet. There’s a reason we’re America’s most powerful digital bank!

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