(Closed) Credit Cards-

posted 8 years ago in Money
Post # 3
Hostess
18637 posts
Honey Beekeeper
  • Wedding: June 2009

Most companies will accept a debit card but they might place a hold on money in the account, meaning that you can’t use the money until they release it, which may be a few days after you check out of the hotel.

Post # 4
Member
4123 posts
Honey bee
  • Wedding: October 2010

Most debit cards have a “credit” side as well. i.e. there is a VISA or MC logo in the corner… this I think should usually suffice, although, of course best option is to check 🙂

Post # 5
Member
1940 posts
Buzzing bee
  • Wedding: July 2010

I prefer to use a true credit card for online purchases, even though my debit card has a MC logo on it.  It just seems like there is a bit more protection in terms of fraudulent activity (at least from what I have read about my particular debit card).  Also, having a credit card is a good way to establish credit for the big purchases – a car, a house, etc.  I do pay off the balance every month though.

Post # 6
Hostess
18637 posts
Honey Beekeeper
  • Wedding: June 2009

@EvaBostonTerrier: You are so right!  When I had my cards stolen, I had to wait weeks for the hundreds of dollars taken out of my debit card to be put back but for fradulent charges on my credit card, I didn’t even have to worry about paying them at all.  I almost never use a debit card now because I don’t have as much protection with it.

We use credit cards to get rewards and always pay them back at the end of the month.  It has worked really well for us, when I bought a home at 19 my credit score was in the high 700s (I was an authorized user on some of my dad’s cards that have been open for decades which helped too).

Post # 7
Member
1940 posts
Buzzing bee
  • Wedding: July 2010

Also, if you pay off the card every month, you basically are getting an interest free loan.  I can keep money in my savings account (earning interest) for an extra 21 – 30 days (or however long the billing cycle is) before I pay off my credit card bill.  It may not be a huge amount, but over time it adds up, especially when you have bigger purchases (ex. washer and drier at the same time).  

Post # 8
Member
1927 posts
Buzzing bee

Ditto @Eva… having a credit card is really the best way to establish credit as a young person.  I had to have a credit check just to RENT my apt in NYC after college and if it weren’t for my credit card I wouldn’t have had any credit.  What are his “ethical” oppositions?  I understand not wanting to abuse a credit card but as long as he budgets in a way that he will always pay the balance off in full every month he won’t have any problems

Post # 10
Hostess
18637 posts
Honey Beekeeper
  • Wedding: June 2009

@FMIL Lady: He should be happy to know that the new credit card laws are forbidding credit card companies from doing all that marketing on college campuses now.  I think if you are under 21 you have to have a parent as a cosigner on the card too.

Post # 11
Member
1927 posts
Buzzing bee

It sounds like he’s proven himself as a responsible kid and he shouldn’t worry about falling into debt just because people around him have.

Post # 12
Member
2006 posts
Buzzing bee

I’m 22 and have had a credit card for over 6 years. At 16 years old my mom marched me down to her credit union and signed me up for a $500 secured credit card. In order to ever use the card I had to have at least $500 in my savings account. It was a great way to start my credit history while making sure I couldn’t get into debt.

She also put me as an authorized user on one of her credit cards because she has amazing credit.

Because she did this for me, I have never been turned down for renting an apartment (I had my mom cosign once simply because I am a poor student). I know have 4 credit cards and can proudly say I pay off every single one on time, I refuse to carry a balance.

Credit cards aren’t evil as long as you are responsible (and it sounds like your son is)!

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