Debit or Credit?

CarlKillerMiller

Diamond Member
Jul 14, 2003
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I have a few grand in the bank from part-time jobs, but this high-schooler is about to get his first card. I'm leaning very strongly toward debit, but can anyone provide convincing arguments for going credit?


Thanks in advance!
 

theGlove

Senior member
Jan 13, 2005
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Originally posted by: Chraticn
I have a few grand in the bank from part-time jobs, but this high-schooler is about to get his first card. I'm leaning very strongly toward debit, but can anyone provide convincing arguments for going credit?


Thanks in advance!

establish your credit history is the prob only reason I would do credit
 

QuitBanningMe

Banned
Mar 2, 2005
5,038
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Originally posted by: theGlove
Originally posted by: Chraticn
I have a few grand in the bank from part-time jobs, but this high-schooler is about to get his first card. I'm leaning very strongly toward debit, but can anyone provide convincing arguments for going credit?


Thanks in advance!

establish your credit history is the prob only reason I would do credit

 

Brackis

Banned
Nov 14, 2004
2,863
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I would go with a credit because you are going to end up using one of these much more often later in life. Plus the fact that if someone steals it, they can't wipe out your bank account and cause checks and such to bounce.
 

Neurorelay

Platinum Member
Jul 21, 2004
2,195
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Credit is the new currency and almost only way to show yourself as responsible to banks and so on. Use it wisely however.
 

aplefka

Lifer
Feb 29, 2004
12,014
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Getting a CC now will help your credit stay strong as long as you use it wisely. And a lot of them have good fraud protection, or you could hire that one guy to be your PI if it gets stolen.
 

CarlKillerMiller

Diamond Member
Jul 14, 2003
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Originally posted by: aplefka
Getting a CC now will help your credit stay strong as long as you use it wisely. And a lot of them have good fraud protection, or you could hire that one guy to be your PI if it gets stolen.

I was wondering when you were going to change your avatar to an apple.

Thanks for the input, everyone!
 

aplefka

Lifer
Feb 29, 2004
12,014
2
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Originally posted by: Chraticn
Originally posted by: aplefka
Getting a CC now will help your credit stay strong as long as you use it wisely. And a lot of them have good fraud protection, or you could hire that one guy to be your PI if it gets stolen.

I was wondering when you were going to change your avatar to an apple.

Thanks for the input, everyone!

I saw that Mrs. Honeybee had it and I figured she wouldn't mind if I shared it too. It's just too damn perfect. :D
 

wiredspider

Diamond Member
Jun 3, 2001
5,239
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See if you can even get a credit card, I've quite decent amount in the bank and a job, but keep getting denied for insuffcient credit history. Going to get my dad to co sign and see how it goes....
 

onlyCOpunk

Platinum Member
May 25, 2003
2,532
1
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Get a CC with low limit even if they offer you more. If I were you I would get both a debit and credit. Use the CC for purchases like gas, and routine bill paying and never carry it with you (that way you wont be tempted to use it) especially if your parents aren't going to be helping you out.

Good Luck planning your financial future.
 

Boze

Senior member
Dec 20, 2004
634
14
91
I too would recommend a credit card so you can begin establishing your credit history early on. I would also recommend a travel card, i.e., something that earns you miles or points or what-have-you with a major airline. Most of these cards have a nominal yearly fee ($49 up to a maximum of $79 as mandated by law) and your "points" (most cards will match dollars spent to points) can be used to purchase tickets at discounted rates or even free, provided you meet the requirements. Also, most of these cards allow you to carry forth the points for up to five years, and I assure you that at some point in time in five years you will want to fly somewhere.

As you establish your credit over time, you can get higher level credit cards; their main benefit being conveniance. Visa Signature is especially useful because you can reserve seats in some fairly difficult-to-reserve restaurants, but there's also concierge benefits that are actually useful if you travel often and need to know where to go in whatever city you're in...
 

Mo0o

Lifer
Jul 31, 2001
24,227
3
76
Get a credit card and just make wise financial decisions. I have a debit card that i use to get money from the ATM. I make all my purchases with my CITI Plat. Dividends card. Btw, if you're applying for one, get that card.
 

Yossarian

Lifer
Dec 26, 2000
18,010
1
81
Originally posted by: wiredspider
See if you can even get a credit card, I've quite decent amount in the bank and a job, but keep getting denied for insuffcient credit history. Going to get my dad to co sign and see how it goes....

I would advise against getting a co-signer. If you really can't get credit on your own, get a secured credit card, the kind where you have to put a few hundred dollars down. After 6 months or so you can swap it for a regular credit account.
 

gotsmack

Diamond Member
Mar 4, 2001
5,768
0
71
Get a credit card, your bank should give you one without any porblems. Thats how I got my second credit card, the first was through my part time job at Macys.

I think I've only used my debit card maybe a dozen times in my life and half of those times were to draw cash from the ATM. I don't even understand why anyone would use a debit card.

here are the reasons I like credit cards over debit.
1. No fees if I pay in full during the grace period, my money sits in my money market account for the extra month or so and builds interest.
2. fraud protection. If my credit card gets stolen and maxed out, I still have money in the bank to buy stuff.
3. Rewards, my Chase perfect card gives me 3% cash back on gas and 1% cash back on all purchases at the end of the billing cycle
 

Jeff7181

Lifer
Aug 21, 2002
18,368
11
81
Credit cards will add to your total available credit... using a lower percentage of your available credit will effect your credit score positively. Which is exactly why I have a better credit score than my parents. I have over $30,000 available credit between all 4 of my credit cards, and I only owe ~4,000... interest free. :D Gotta love 0% APR credit cards... as long as you pay it off before the 0% introductory rate expires. And as long as you always make at least the minimum payment. Missing, or making a late payment will often void your introductory rate and it will skyrocket to about 20%.
 

datalink7

Lifer
Jan 23, 2001
16,765
6
81
Get an American Express. The green student one. You HAVE to pay it off every month, so you won't get yourself into trouble by getting into debt. And you will be able to use it to build credit.
 

dullard

Elite Member
May 21, 2001
25,895
4,483
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There is one and only one benefit of debit over credit. If you are unable to control your purchases, debit is the way to go. If you are cabable of controlling your own purchases, then credit is equal or better in every possible measurement. Thus, debit is an extremely stupid way to go for the majority of people.

[*]Protection. Credit cards must give you legal protection by federal law. Debit cards sometimes voluntarily give some or all of those protections - with the provision that the protections can be withdrawn at the bank's chaotic will. Travel out of the country and debit card protection is non-existant while credit cards are still quite safe. And all of this is with less hastle than a debit card. With a CC you never pay for a disputed charge until the dispute is resolved. With a debit card, you pay for the charge immediately and if you win the dispute you will eventually get your money back.

[*]Building credit. Using a CC wisely will build credit and save you thousands over your lifetime in lower car payments, lower house payments, and lower insurance payments. Using a debit card does nothing for your credit. It as if you don't exist.

[*]Freebees. Debit cards with free stuff are few and far between. And when there is free stuff, it is often quite meager. Credit cards will routinely give you 1-2% cash back and even up to 5% cash back (but with a limit). That is like getting everything you ever buy on sale. Don't buy into the hype of airline miles or car discounts - free cash is almost always the better deal.

[*]Emergencies. For short term (<6 weeks) emergencies, a credit card is the best way to go. Free 0% loan for up to 6 weeks whenever you want. That beats the hell out of those check cashing places that charge 200+% interest. For a long term loan, see a bank instead of a CC though. Otherwise you risk violating the big rule of credit cards: pay it off in full with every bill otherwise you will usually let your spending run out of control.

[*]Other stuff. I guess you can lump these as a combination of protection and freebees, but they are slightly different. These are more variable and don't apply to all credit cards. But you may get things like free travel insurance when flying, free car insurance when renting a car, free price protection if the price of things you buy drops in the near future (you can call and get the lower price on a few credit cards), easy returns (it the merchant's burden to prove that it is your fault with a CC, with a debit card it is your burden to prove that the merchant is at fault), etc.
 

Kishan

Platinum Member
Jul 2, 2004
2,580
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Originally posted by: Dacalo
For a sec, I thought this was an accounting thread.

Debit on the left, Credit on the Right Side. To increase an asset, you must debit it.


Now it is:p
 

Jzero

Lifer
Oct 10, 1999
18,834
1
0
I specifically asked NOT to get a debit card from my bank. Just a plain ATM card. If my wallet gets stolen I don't want some clown to be able to wipe my bank account so easily.
 

DougK62

Diamond Member
Mar 28, 2001
8,035
6
81
Get a credit card or get both. People that don't get credit cards as soon as they can in this society are idiots.