<p>I’m worried that he’ll eat out, get the bill, and find out they only take credit cards. Or that he doesn’t have enough cash for a taxi ride, and they only take credit. Or that he’ll feel like he needs to carry tons of cash around, which isn’t the best idea. Or that someone will watch him put in his PIN when he buys a pack of gum, and clean out his checking account. I’m pretty much pinging that he’s going so far away (college didn’t really count, that was such a protected environment), into the heart of the big city…and I haven’t taught him all the things I needed to, and given him all the advice I should have.</p>
<p>But as a constant traveler, I am completely aware that no matter where you are in this country, wherever you are stranded…you can manage anything if you have a cell phone and a credit card. It is security. He’s had a credit card for six years, we wouldn’t let him drive without it, so he’s pretty used to using them.</p>
<p>I’ve never heard of businesses that accept credit cards but not debit cards. Does anyone know whether that is really a valid concern? Also, I don’t think our kids carry wads of cash like we did; that is the beauty of the debit card. </p>
<p>As far as the chance of his account being cleaned out, that would of course be unfortunate, but really how likely is it, and really how much will be in the account when he is just starting out?</p>
<p>I agree that there are risks to not having a credit card, but the value of his figuring it out on his own might be worth it, especially if the goal is for him to learn independence. You’ve told him about credit cards, and he is not interested. Perhaps he needs to find out on his own.</p>
<p>^^Ah, well, I think he’ll have independence. He has been living 2500 miles away for the last four years anyways. He’s not making a stand about the credit card, just doesn’t seem to think he’ll need one. I suspect that had I given him the arguments people brought up in the first place, he would have agreed. I don’t know how likely it is that someone could clean out his account, but he has a high paying job and has more in his checking account than we do, after his tech internships. We recently paid him back 10K we borrowed from him, so I suspect he’ll have more free money than we will.</p>
<p>I think we’ve had Dave Ramsey on the radio too often lately!</p>
<p>This was a while ago - a coworker and I were traveling and a major car rental company wouldn’t rent against her debit card; don’t know if this sort of a thing still happens.</p>
<p>We don’t like debit cards either for ourselves or for the kids precisely because of the fraud issues talked about. However, if you ever shop at Aldi’s or similar stores, they don’t honor credit cards. I’ve encountered some places overseas where they give a lower price for debit card vs credit card, but I’m so petrified of fraud that I’d rather take advantage of this using cash. The other thing about credit cards is that many of them give rewards and/or boost warranties which is an added bonus. Don’t know enough about DC to know if any of them do so.</p>
<p>The one thing I hope I’ve impressed on the kids is, barring true emergencies, never to buy something on credit for which they don’t have cash, and make it a point to religiously pay the full balance each month. If they don’t have the discipline to do this, I think I’d rather they stick to debits.</p>
<p>Also, you pay a fee for a debit card use and only pay interest if you carry a balance on your card. You don’t have to carry a balance. We don’t carry balances on our cards.</p>
<p>I wouldn’t want my kid in NYC without a card, or London or any other major metropolitan area. </p>
<p>He should get a CC to start building a credit history. Best insurance rate, loan rate, etc. is based on your credit worthiness. Employers have been known to pull your credit history before hiring. None of these may matter to him now but soon down the road.</p>
<p>Top of my head, I can think of better and extended warranty. My D dropped her brand new ipod and shattered the screen. AMEX replaced it with no hassle since we purchased it with AMEX. Had it been paid with debit card, we will eat the cost ourselves.</p>
<p>Our Ds have had credit cards since the time they learned to drive. We wanted them to have the security of available $$ if necessary in an emergency. Those early ones were cards on our account but they each had their own number in case one was lost so it wouldn’t affect everyone else’s. Once they were in college, they had accounts in their own names so that they could start building a credit history. They, like us, always pay it off in full each month. In addition to building a solid credit history, and having them available in the case of an emergency, the benefits and rewards are also a positive. </p>
<p>I’m not sure how any of them could travel the way they do without a credit card. Hotels are a PITA if you don’t have a credit card. Same with renting a car. I think it’s actually a mistake not to have one available for young adults. Eventually, they’re likely to want to purchase a car or a home, and without an established credit history, getting approved for a mortgage may be an issue.</p>
<p>Actually, Visa or Mastercard fraud is very common; having a Visa or Mastercard debit card is just asking for your account to be cleaned out by the inevitable fraud. PIN transaction fraud appears to be much less common, since PIN transactions are much less common for not-in-person or large transactions that Visa or Mastercard transactions are used for.</p>
<p>Debit cards should be ATM-only or ATM-and-PIN-transaction-only. Visa or Mastercard cards should be credit cards, since fraud will run up bills that you eventually won’t have to pay, as opposed to emptying your account (which can be a hassle even if it is restored later).</p>
<p>If it will help with your argument… Southwest now has get 50K miles when you get their card. That was enough for me to fly round trip from east coast to Denver, and rt to Florida twice… Free
I recently lost my credit card at a gas station… And could easily get it replaced fairly quickly. If I ONLY had a debit card, that could have seriously impacted me for at least a few days. At a minimum I’d suggest he carry two cards of some type, and NOT carry a lot of cash. Good luck.</p>
<p>One of my kids lives & works abroad, she has a US credit card which she only uses here, she has her foreign bank account and uses that debit card for everything, so it can be done, even plane tickets.</p>
<p>But I told her it is likely safer to use a real MC/Visa as there are more bank protections on those cards and if some one steals and uses your debit card, they take your cash, if some one charges fraudulently, you have better recourse and less inconvenience in the interim.</p>
<p>“Actually, Visa or Mastercard fraud is very common; having a Visa or Mastercard debit card is just asking for your account to be cleaned out by the inevitable fraud. PIN transaction fraud appears to be much less common”</p>
<p>I never thought about whether my ATM card was a Visa/MC, I just assumed it was an ATM only. Now that I look at it, it has a Visa symbol on it. I don’t even know what that difference is compared to a regular ATM card. Sounds like I’d better figure this out and get them replaced.</p>
<p>As a Bank of America customer, I was able to visit a branch and be issued a temporary card on the spot when I lost my card. My credit card companies will overnight a replacement card for me, but I don’t know if that service is available to every customer.</p>
<p>I think it is clear that there are advantages to having a credit card, but with respect to your original question: “Does your kid really need a credit card to get by?” I think the answer is no for a young person who doesn’t need a car or who doesn’t travel much.</p>
<p>My daughter keeps relatively low balance in her checking account that is linked to her debit Visa (she has a second credit union account). She rented a UHaul using her debit and didn’t realize they put a large hold on the account since it was a debit card and it caused her checking account to go overdrawn. She bounced another check and she incurred overdraft fees. Her balance was plenty high to cover the actual rental charge and the other check but not the extra hold amount. Had she used her CREDIT card for the rental none of the problems would have occurred. Live and learn… and definitely recommend your son get a credit card.</p>
<p>" but with respect to your original question: “Does your kid really need a credit card to get by?” I think the answer is no for a young person who doesn’t need a car or who doesn’t travel much."</p>
<p>You’re probably right, it is not necessary if you want to work around it. Back in the day, I just wrote checks or paid cash for everything, after I moved out. If I would have thought about my original question, I should have more accurately phrased it, “Help me validate my position,” as I feel very strongly about having a credit card. I would feel stranded without mine. After reading some of these stories and reasons, I feel even stronger about him getting one of his own. I suspect once I start spitting out a few of these stories and reasons, he will agree!</p>
<p>Truth is, I would have insisted he keep a credit card in his wallet, but it would just be ours. I think getting one under his own name would be better, considering the credit score aspect and financial responsibility for his own bills.</p>
<p>You must be a more profitable customer for them than I am… my company wants to charge something like $30 for the overnight (or I can wait for regular shipping which takes something like 10 days, that is free). Which is why I keep the 2nd card in the drawer – I paid that $30 fee once, but have no intention of doing it again.</p>
<p>I don’t have a credit card and it’s never held me back. I’ve never had a problem booking hotels, rental cars, or flights with my debit card. I own a house and have financed and paid off cars as well.</p>
<p>Like you, busdriver, I have many cards I juggle for rewards, have gotten over $1000 in cash and rewards the past year. That would be reason enough for me! I would encourage all my children to get a card when they graduate and are working and living on their own, mainly for ease of purchases, travel, and to build credit. I have personal experience with credit rating affecting other things, such as interest rates on loans and insurance rates you are charged. If they are forgetful, the bill can be automatically paid each month from a bank account. My D travels a lot for work and has a credit card from her company; I am glad she had some experience with credit before she started there.</p>
<p>Both of my kids have had credit cards since they were 18. A card of ours while they were in college and then their own. I have drilled it into them that they should NEVER use a debit card on-line. Of course, the chances are small that there will be fraud, if it’s a secure site, but why take the risk?</p>
<p>I got my first credit card about 4 months ago. I got card primarily to help build up my credit. I purchased and financed a new car last summer after graduating from college and after getting my current job. I may refinance the car in a couple of more months and my credit card payment history combined with my car payment history should allow me to get a more favorable car loan soon.</p>