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What is the benefit of debit cards over credit cards in college?

I am going to be entering college soon and need to pay for things without carrying cash, should I use debit or credit? #financial-planning #finance #credit-cards #banking #college

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Paul’s Answer

Your best bet is to use a debit card because it is linked to your checking account. While you will have to be disciplined so you don't overdraft your account, you won't have to worry about messing up your credit history. It's important for you to remember that you will be a full-time student and will not have a full-time job so you have to watch your spending. If you get a credit card you will be tempted to spend more than you can reasonably afford and this will get you into trouble really fast.


I remember when I was in school I fell into this trap because every time I went shopping for clothes I would apply for the store credit card to save money off of my purchase. I always got approved and over time I wound up with 6 maxed out credit cards and only had a part-time job. Needless to say I wasn't able to keep up with the monthly payments and totally ruined by credit report. I learned my lesson the hard way and eventually repaired my credit but don't make the same mistake I did. DO NOT GET A CREDIT CARD! Wait until after you graduate and get a full-time job. Even then you will just need 1 or 2 to establish credit and you'll be able to afford the monthly payments.

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Katya’s Answer

I would also recommend to use your debit card while you are in college. looking back at my college experience - I wasn’t able to get a credit card in the beginning but also I wish someone educated me on how the credit cards works. as I was new to this country and had very limited information- when I started applying for store credit card, not paying attention to the high interest rates-the focus was just that I was able to pay the minimum payment which got me into trouble after so many years because the interest accrued and now my credit card balances were way too high and I was in debt.

debit card-is an way to keep you in balance on your spending. you will learn how to budget, you will not own anything to the banks, there is no interest and no late penalties if you forget or can’t make the payment, it allows you to love a worry free college life and of course control your spending habits on the things you want and need.

debit card- most banks now have a budget portion attach to your banking account and it shows you where are your most and least spendings which keeps you always on point.

later on when you out of college and you have a steady job- you can start building your credit history to make future large purchases but until then- to be in the safe side use your debit card. always make sure that you set up your daily spending alerts on your phone-it will send your instant real time messages where you spend your card and in case you noticed an unknown vendor- always block your card online, immediately contact your bank and put a fraud claim investigation. they will reissue a new card to you.

when using your debit card- you do have a merchant option usually they ask :” would you like to use credit or debit?’- I recommend say “credit” this way you don’t need to input your debit card pin and use your signature- it’s another way to protect your account and just in case someone behind is watching you.

hope this was helpful and wishing you lots of luck in your new life path.
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Paula’s Answer

A debit card will help you stay on budget, you can only spend the amount you have in the account it is linked to. It can control your spending habits and avoid credit card debt. A debit card will also allow you access to cash at an ATM or cash back at a place of purchase.
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Patricia’s Answer

Debit cards are best in order to track your purchases and avoid debt. Credit is important however I would not recommend a credit card until you have full time employment and the ability to manage your debt. Always avoid credit debt when possible. Saving will help you reach your goals in life and debt will always put you behind.
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Malisa’s Answer

It depends on your financial literacy. If you are good at managing finances you can leverage credit card programs and benefits to your advantage. Something to keep in mind with debit cards is they remove funds right away. If you are on a very tight budget you could run into over draft fees and other situations. I agree with not compounding debt. Pay off credit cards ASAP (do not let the balance ride). Remember, live within your means at all times. If you can't afford to go out to the club - accept that you can't do that and remember you have a larger goal in mind.
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Adam’s Answer

Hi Alvaro,

Each situation and person's finances are unique but I would recommend doing your research on Dave Ramsey and what he teaches around credit cards. It is very interesting and not for everyone but I found it works for me and for many others. He teaches a different way to think but one of his more prominent sayings is "debt is dumb and cash is king". In today's world it is important to have credit to build up a solid credit score but its also important to practice using credit cards responsibly and wisely. Even the smallest thing sometimes can run a credit card bill up to where its hard to manage. Hope that helps and good luck in college!
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Lauren’s Answer

There are pros and cons to both. Using a credit card is good because it helps you build your credit, which is necessary at your age. BUT, you have to be disciplined enough to not spend more than you have and to pay it off every single month. If you don't have the income or discipline to do so, I would stick with a debit card. I would also see if your bank has the option where they will text you when your balance goes below a certain amount, say $500. This will make it less likely to overdraft your account, which is never good.
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David’s Answer

There are different schools of thought. Some say to use a Debit card in college, because it is a plastic check and comes directly out of your account. But if you don't manage you balance, you can over draw the account and incur fees from the bank. Also, if you are putting your debit card number in all your apps to order GrubHub or purchasing something through the Apple store or making a purchase online, your information can be at risk. Check your 'paperwork' on your debit card to see how you are protected; ex. if your account gets drained to zero by a restaurant purchase you did not make, how long of a process is it to get that money back.
With a credit card, you need to track your spending and have the money in your bank account to pay it off every month, to avoid building debt and paying lots of interest. That said, you can use a credit card to make all your purchases, and have the peace of mind knowing that your are protected with transactions you make. If there is a disputed amount, your bank account is not drained. In general, it is taken off the balance you owe on the credit card, when the false transaction is closed. Some cards also give you purchase protection on items purchased, see each card for details.
Hope that helps with an alternate view. If you use a credit card properly, you use that bank's money for a month for free...as long as you are disciplined enough to pay it off each month.
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Lucy’s Answer

With Debit cards, you use what you have in your checking account. Credit cards are good to build your credit but you have to be very disciplined to make sure you are making your payments on time. With Credit cards, if you do not make your monthly payment on time, you are charged a late fee. You are also charged interest on your purchases if you do not pay off your entire balance each month. If you do not have regular income, i would suggest using Debit Cards as it trains you to just use what you have.
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Melissa’s Answer

You definitely should stick to debit card vs. credit card. Debit cards subtract the purchase directly from your checking account. Credit cards allow you to buy now and pay later which can be slippery slope while in college. Highly recommend you avoid increasing debt.
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Youssef’s Answer

It depends how disciplined you are. If you are going to control your spending a CC is good to spend and pay off each month and build your credit.
A DC is straight forward no real benefits really. Long story short, how disciplined are you not to put yourself in debt...
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Magdalena’s Answer

Hello Alvaro,

Your question is indeed insightful. Both debit and credit cards can be instrumental in teaching you how to manage and use money effectively. However, a debit card offers you a greater sense of control. With a debit card, you're spending your own money, be it earned or gifted, and you can't spend beyond your means. Plus, you're not accruing any interest. Choosing a reliable bank is crucial as it should be easy to deal with, either in-person or through a user-friendly mobile app. The bank representative who opens your account will serve as your future advisor and friend.

On the other hand, a credit card may seem attractive initially due to the rewards on purchases. However, it can easily lead to maxing out your credit limit, and repaying can sometimes be challenging. After the initial 0% interest period, you'll start accruing regular interest on the outstanding balance. Another point to consider is that credit card services are more impersonal. You don't have a dedicated person to assist you, and every time you call, you'll be speaking with a different representative. However, if managed wisely, a credit card can offer benefits and help you develop financial discipline and good habits.

In conclusion, both options have their merits, and you should have the chance to experience both before deciding on the best fit for your needs.
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Tom’s Answer

The debit card is linked to your checking account. It allows you to pay where the major credit cards are accepted. It provides some discipline since if you don't have the cash you can not make purchases. Some banks will allow you to buy things to a certain limit with having the cash but there are fees, so opt out of that feature.

Credit cards allow you to draw on a line amount up to a set threshold. This not linked to your checking account, so it stands on its own. Credit cards are a useful tool to buy things today and pay for it over time. It is usually costly credit, higher rates, since it is unsecured. If credit cards are neglected, missed or don't make payments, your credit score will impacted. That on the surface means nothing but when you borrow again and the credit score is low it may cost you hundreds, if not thousand of dollars, over a life. Think of the credit score like a fingerprint , it yours and follows you to each application you process.
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Frederick’s Answer

Great question with a lot of great answers so far. I just wanted to add that a good trick of using a debit card, versus a credit card or using an ATM, is the POS option (Point of Sale). What this means is that at any store that has a PIN PAD where it asked DEBIT or CREDIT you can get a little extra cash if you need it without paying a fee. If you need $20 for example and go to an ATM or use a credit card there will likely be some fees (not all banks charge but many do for ATM services, especially if you are somewhere where the bank you use doesn't have ATM's available.) But by utilizing the DEBIT option at a store with a PIN PAD at the cashier when you are already purchasing items you need, you can simply put your card in, enter your PIN, and press a butting saying you want $20 cash back which avoids the fees that an ATM may have. Just be careful and only get small amounts of cash when you need it. Good luck in College!
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Karl’s Answer

Hey Alvaro,

I would highly advise you to use a debit card, as it will most likely set a disciplined path by controlling your spend. With a debit card, you can spend from what you have existing in your bank account. However, with a credit card, you will most likely have the tendency of spending more than what you can afford (More than what you have in your Bank account); which will result with a debt and most likely get you into trouble with the bank.

Hope i was able to help.
Best of Luck!
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Morgan’s Answer

Hi Alvaro,

At the end of the day it is going to come down to personal preference. A debit card is linked directly to your checking account. A credit card is money that you are "borrowing" from the credit card company to pay for your purchases. Each has its own benefits and negatives. You should look into your financial institutions terms and conditions as well as their overdraft information if you choose to use a debit card as that will give you information about what type of fees they charge to overdraw the account or to use the debit card. A credit card is nice because as you use it you will gain more and more credit and starting young is the best way to start your credit journey. However, you must be vigilant to ensure that you aren't spending and spending without paying it back, not using most of your credit limit, and paying more than the minimum when the bill comes due.

If you are ever in doubt always feel comfortable to reach out to your local bank as they are trained professionals and will help guide you in the right direction.
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William’s Answer

Either a credit or debit card can be very useful if you are tracking expenses for later reimbursement from a 529 College Savings account.

If you use a debit card, you may be able to link your account to your parents' bank account (if it is at the same bank) to provide overdraft protection. Some banks charge significant fees if you overdraw your account without this protection.
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