<p>all of what ryanbis stated is true.</p>
<p>Debit cards are taken pretty much everywhere. I've bought things on Amazon with mine with no worries (except for the fact that the card number stays on file, that makes me feel a little uneasy). It's true, you don't build credit with a debit card, but you an only spend as much as you have in your account, and you don't have to worry about a monthly bill, paying interest, or interest rates.</p>
<p>"Debit cards are taken pretty much everywhere."</p>
<p>I don't think that was ever in dispute.</p>
<p>"It's true, you don't build credit with a debit card, but you an only spend as much as you have in your account, and you don't have to worry about a monthly bill, paying interest, or interest rates."</p>
<p>With a little self-control, you can still only spend as much as you actually have in cash. You also don't have to worry about paying interest if you just pay the balance every month (making interest rates moot, assuming your credit card uses the average daily balance method of computing interest).</p>
<p>For many people, credit cards also simplify the record keeping process. Reconciling bank statements (which hopefully everyone does) with tons of little transactions can be a nuissance. Many people end up not bothering and don't know what their true balance is. If you use a credit card properly, you should only have one monthly credit card payment and a few ATM withdrawals to reconcile.</p>
<p>For those of you looking for and not finding (or just not getting approved for) credit cards, check out CitiBank's student cards. As long as you're careful not to carry a balance - the interest rate is out this world - they're a great card to begin building your credit history with. Of course, as soon as possible i would switch to a card with a lower APR, but college student + no credit + (in some cases) no real job = crappy options.</p>
<p>Sovereign Bank has student credit cards with a 9.9% interest rate. I highly recommend it. I don't bank with them, but have received some good promotional offers from having their credit card.</p>
<p>I just have a debit card, never a credit card, and have never had a problem. I'm organized enough that I always keep track of what I spend. And even though I don't have a credit report, I haven't had problems renting an apartment, or getting student loans all on my own. My parents did co sign on my car loan though, so I can imagine that I should start a credit history sometime before I get my next vehicle.</p>
<p>Actually, ndcountry girl, if you simply pay your car loan off in time, that will do good things for your credit (even if you have a cosigner). But it is important to have both a history of fixed loans as well as revolving credit, so having a car loan with a cosigner or a small personal loan that you pay off on time as well as a credit card where you use LESS THAN 30% or so of your available credit limit and pay in full each month would be perfect.</p>
<p>BTW it is much easier to get a credit card while in college than after, because credit card companies know that parents are willing to help college students out with their bills but after that, they might default.</p>
<p>in order to get approved for a credit card, write the about the financial aid you recieve on the income amount. the workers at the bank even told me to do this and i was approved</p>
<p>I have a debit card, but now after reading ur guys' posts, I think Im gonna get a credit card.</p>
<p>ryan, interest rates are a concern because many people only pay the minimum, especially if they spend to their spending limit each month. And you still have to check your credit car statement to make sure that nothing was charged twice by accident and that there were no mysterious charges made that could be a sign of identity theft. But that could happen just as easily with a debit card. I just think a debit card is easier to manage when your a college student because you can't overspend, as some of us might do with the false impression of unlimited money that a credit card gives. But I'm not saying that credit cards are evil and no one should have one. I'm getting one sometime in the next year. But I'm not in a hurry to do so because I don't want to spend too much and either have to paya huge bill, pay the minimum and later have to worry about interest, or have my parents pay. I just don't want that burden right now. </p>
<p>I know that was somewhat repetitive, but I was just trying to make my point :)</p>
<p>How about you guys just be mature and <em>gasp</em> responsible and watch what you spend? heaven forbid you have to do that. I get so sick and tired of people talking about how credit cards make them spend more and then charge them a bunch of interest later... well they should. honestly, i wouldn't have a problem if they charged you 200% interest if you have a balance on your card and actually i think that would be a good idea because these measley 10-20 percent interest rates don't scare people enough to actually make them control their spending. you should always watch what you spend and never charge more than you can afford to pay at the end of the month. The credit card does NOT make you spend more. the user who thinks they can spend more because they have a credit card is what makes them spend more.</p>
<p>"Credit cards, while a huge hassle..."</p>
<h2>"Why are they a huge hassle? I don't agree at all."</h2>
<p>clearly you've never tried to manipulate your account in some way (changing your credit limit, adding an authorized user, etc) or ever had a credit card stolen or used without permission. Heck, if you've ever had to claim consumer protection you know what a huge pain it is. Never mind if the card is stolen and used and your credit destroyed, which has happened to so many of my young friends.</p>
<p>Credit cards are a responsibility and can be a liability. I believe they are a hassle. They're not really just another way to spend money. Obviously there are things you can do to safeguard your card but credit of any kind can screw you to high heaven, even through no fault of your own.</p>
<p>"clearly you've never tried to manipulate your account in some way (changing your credit limit, adding an authorized user, etc) or ever had a credit card stolen or used without permission. Heck, if you've ever had to claim consumer protection you know what a huge pain it is. Never mind if the card is stolen and used and your credit destroyed, which has happened to so many of my young friends."</p>
<p>I have never had a problem raising my credit limit or getting customer service reps to do certain things (like send a credit reference letter, do balance transfers, etc.). It really isn't a big hassle and still don't understand why you think it is.</p>
<p>And yes, having your credit card stolen can be a pain, but having your debit card stolen is much much worse. If you pay attention to your credit card usage, there's no reason your credit should be destroyed. If you catch it in time, the problems will never make it to your credit report. Even if they do, credit reports can be fixed. It may not always be easy, but there's no reason for someone's credit to be ruined as a result of fraud. </p>
<p>"Credit cards are a responsibility and can be a liability. I believe they are a hassle. They're not really just another way to spend money. Obviously there are things you can do to safeguard your card but credit of any kind can screw you to high heaven, even through no fault of your own."</p>
<p>Sounds a bit sensationalistic, IMHO. For people who understand how they work, credit cards are extremely beneficial and are a way to help protect your finances.</p>
<p>The whole plan for people not to get credit and stay with debit, is great but those who do this will end up hurting themselves in the long run.</p>
<p>use credit, just use it wisely./</p>
<p>I'd encourage you to find me one student who truly understands exactly how a credit card works. </p>
<p>How is having a debit card stolen worse than having a credit card stolen? They carry the same protections from Visa/Mastercard, and the debit card can't be used for a direct withdrawal without the pin number, whereas pretty much anyone can sign on a credit card and chances are the retailer won't notice. Credit cards can be run up into the thousands of dollars instantly. Debit cards are only good for the money that's there, so at worse, you lose maybe a thousand dollars, which is safeguarded by your card protections anyway.</p>
<p>I had my identity stolen last year and my credit report is just now being fixed. I had $15,000 of debt run up in my name by someone opening credit accounts. The person opened four credit cards in my name and attempted to obtain a car loan. All the cards were maxed out before I even knew there was a problem. The debt is being erased now but it was not easy and in the past year I had student loans denied because of my credit report and was almost prohibited from buying my car. It's not instantly erased.</p>
<p>I've lost credit cards and calling to cancel the account and open a new one is a pain. with a debit card, they just freeze the card and send you a new one. No pain, no problems. My bank is excellent but they aren't permitted to freeze a credit account- they have to CLOSE the account and reopen a new one if a card is lost or stolen.</p>
<p>I'm all about credit cards but it's not wise to use them as your only source of spending to make a few pennies in interest and then pay off the bill. Debit for everyday purchases (regular things such as gas and food) make it easier to monitor your actual cash and budget than running up a credit card and paying a lump sum every month.</p>
<p>"How is having a debit card stolen worse than having a credit card stolen? They carry the same protections from Visa/Mastercard, and the debit card can't be used for a direct withdrawal without the pin number, whereas pretty much anyone can sign on a credit card and chances are the retailer won't notice. Credit cards can be run up into the thousands of dollars instantly. Debit cards are only good for the money that's there, so at worse, you lose maybe a thousand dollars, which is safeguarded by your card protections anyway."</p>
<p>That's incorrect. Legally, you're only on the hook for $50 when your credit card is stolen. If your debit card is stolen, you can be held liable for up to $500. Many banks have increased the amount of protection they provide beyond what they are legall required, but not all of them have. Most of all, with credit cards, we're only talking about your credit being affected. With debit cards, we're talking about your cash disappearing, which is much worse. With a credit card, you're just disputing a debt (which, yes, is a major headache), but with a debit card, you're risking going (at least) a few days without a dime in cash. You also risk having checks bounce.</p>
<p>And of course theives can use a debit card without your pin. They just use it for purchases instead of withdrawals and act as if it were a credit card. The money still leaves your account as soon as the transaction is posted.</p>
<p>It doesn't matter how much a theif racks up on your credit card--you're, at most, liable for $50 if you catch it within a reasonable period of time. That's the law. The wonderful part is that you can still go on with your day-to-day business because you still have cash. That's not the case with a debit card. Yes, the amount they steal is limited to what you have, but you still don't want them to have access to your cash. How are you going to eat? Pay a bill? </p>
<p>"It's not instantly erased."</p>
<p>I never said it was, nor did I say is was easy. But it is better to worry about erasing a debt than to worry about getting your cash back.</p>
<p>"I've lost credit cards and calling to cancel the account and open a new one is a pain."</p>
<p>That's not a reason to not have a credit card--that's your own doing.</p>
<p>"Debit for everyday purchases (regular things such as gas and food) make it easier to monitor your actual cash and budget than running up a credit card and paying a lump sum every month."</p>
<p>I completely disagree, but, so be it.</p>
<p>Lauren its worse because its actually your money that is being lost, it can become a problem for people because you need to prove that you did not spend the money. It is very easy with a stolen card to reset the pin or obtain a new pin.</p>
<p>I'm ignorant of the credit card system. I've never had one, but now Im seriously thinking about it.</p>
<p>Correct me if I'm wrong, but don't credit cards make items cost more than they would otherwise?</p>
<p>Not if you pay for the item before your grace period is up.</p>
<p>Take the time to learn as much as you can about credit cards before actually getting one.</p>
<p>I have a BoA CampusEdge account. Do you suggest I get a credit card through them, or that I shop around first?</p>