<p>All this is instructive. S1 is a rising senior and has never had a credit card. I might look into helping him get a secured card with a $500 limit to establish credit - there’s only so much trouble he can get into with a low limit like that.</p>
<p>Each of my three daughters obtained a credit card while they were in college; most of their friends had them sooner. I don’t know if you absolutely must have one to get by - probably not. But our understanding was that it would be more difficult (if not impossible) to sign an apartment lease without some kind of credit rating. Since none of my kids purchased a car or had educational loans, I don’t know how they’d have built a credit rating without a credit card.</p>
<p>Although my kids routinely use their debit cards for everyday expenses and have (fingers crossed) not had any trouble, one aspect they dislike is the hold certain merchants (gas stations, hotels) put on additional funds, supposedly as an anti-fraud measure. This was only a problem when they were first starting out and living more on the financial edge than they do now. But some of the gas stations in particular were extreme - holding an extra $75 every time my d filled the tank. </p>
<p>I don’t use a debit card. Whenever I check into a hotel, I notice a little sign at the front desk about the policy for using a debit card, and I always think it sounds like a pain.</p>
<p>My kids have been self-supporting for a few years now and have not renewed the credit cards we set up for them while still in high school. They have their own cards and I know how lucky we are that they are good about budgeting and paying them off every month. I have even told them if they get into a bind, we will loan them money rather than have them pay interest and/or late fees.</p>
<p>I want them to have a credit card for emergencies. We have family spread out all over and it is expensive to travel in the event of an emergency, so I want them to have a pretty high limit. If they didn’t do this on their own, I would arrange for them to have an emergency card on my account. They could just keep in in a wallet or drawer unless needed. This would give me peace of mind and keep me from having to make those emergency arrangements myself when something inevitably comes up. I don’t personally see this as intrusive parenting.</p>
<p>When we or our kids travel overseas, I like to have an extra credit card secured someplace in case we get pick-pocketed. Again, it is possible to deal with a stolen card and get a new one, but really inconvenient in those circumstances. If you have an extra, you can just cancel the stolen one and deal with all that when you get home.</p>
<p>
</p>
<p>In NYC, while one can do without a credit card, having one makes everything easier and much more secure. No need to carry around large amounts of cash or worry about debit cards getting stolen/misused without much recourse. </p>
<p>I would strongly advise against using debit cards, especially for online transactions. I was ripped off by an online merchant who never sent me what I ordered while using a debit card just out of college. </p>
<p>When I tried going to my bank, they said once the money’s been withdrawn from a debit card, it’s like a check and can’t be canceled. However, they did say if I used a credit card, there are procedures to “stop payment” so it was much more prudent to use credit cards for such fraud protection. </p>
<p>Moreover, if one hopes to do anything which requires a credit check, having credit cards and using them wisely does facilitate the building of excellent credit. </p>
<p>If I had known this back when I started college at 17, I would have followed my older family’s advice to get a credit card and not wait until graduation when lack of credit history proved to be an impediment to renting nicer apartments or getting desirable credit cards. </p>
<p>Took two years on using a Discovery card before my credit history was so good that the very desirable credit card issuers who rejected my first application were soliciting me to apply for the second time. Did prove awkward on occasion as many businesses won’t take Discovery.</p>
<p>I don’t see why it’s a parenting issue if the OP tells her son the advantages of using a credit card over a debit card. If a friend my age mentioned that they only used debit cards, I’d give them the same information about credit cards (and I’ve done exactly that).</p>
<p>Debit cards are vulnerable if an ATM or cashpoint has a skimmer attached, designed to read off the card info and capture the PIN so that the card can be cloned. Some of these are remarkably sophisticated. There have even been instances where they’ve been installed right at bank branches. Not super likely, but it is an issue. </p>
<p>It’s generally a good idea to have more than one card in case there’s a problem with one card or another. With just a debit card you’re vulnerable if there’s a problem with that card (which can be something as innocent as a problem with the magnetic strip).</p>
<p>I have a debit card for myself and one for my business. Both are the VISA/MC type. I do not have a credit card. I use both of these everywhere, including for online shopping. I think the largest single purchase I’ve made was about $1200. I’ve used it to reserve and pay for hotel rooms in Europe and the US without problems, although I don’t recall renting a car. One of my banks detected a fraudulent use once, and froze the account immediately, after a charge that was under $300. They gave me a new number and unfroze it very quickly, but this would have been a problem if I only had access to one account. On the other hand, I believe that I could have gone into the bank and withdrawn money if I needed cash, or paid with checks. The other hassles–informing companies that I pay with automatic debits, like Netflix–would have been the same if it were a credit card.</p>
<p>I certainly don’t think that anyone NEEDS a credit card, but it would not be a bad idea to have one for emergencies, such as major car repairs. This is particularly true when starting out, when one has not been able to build up a cushion sufficient for such things. t is crucial that it not turn into a way to pick up big bar bills, eat out, buy expensive electronics, pay for vacations, or make online purchases on a whim. Unfortunately that is what happens all too frequently.</p>
<p>
</p>
<p>True. However, the same could be said for cash or debit cards to some extent.</p>
<p>However, this is mainly an issue of imprudence/irresponsibility on part of the end-user and not necessarily an inherent defect of credit cards themselves.</p>
<p>Never had an issue with going over my head with credit cards since I’ve had them.</p>
<p>" One of my banks detected a fraudulent use once, and froze the account immediately, after a charge that was under $300. They gave me a new number and unfroze it very quickly"</p>
<p>So this was a debit Visa/MC, that they froze. That is great that they detected fraudulent use, but what if they didn’t? From what I’m reading, if there was a fraudulent use that you discovered, could you dispute it, not pay it? If they let something go through, because honestly how could they detect much of it, is there any recourse with this type of card?</p>
<p>“However, this is mainly an issue of imprudence/irresponsibility on part of the end-user and not necessarily an inherent defect of credit cards themselves”</p>
<p>I agree. If you look at a credit card as a financial tool, and not free money (except for points and mileage bonus), it seems you shouldn’t overspend. Though I’m sure some people know they are too much of a temptation and should probably stay away.</p>
<p>
</p>
<p>The debit card I used for the online merchant who ripped me off and the bank said “no recourse” after inquiring about it was a Visa/Mastercard type debit card issued through my bank i was using at the time. </p>
<p>From my experience, I wouldn’t count on banks detecting all fraudulent charges or more importantly, go to bat for you once the online merchant committing fraud or shipping defective merchandise withdraws the cash from the debit charge. </p>
<p>On the flipside, once I used credit cards and encountered the same issues, the credit card issuers immediately stopped payment, went to bat on my behalf, and I never incurred a loss.</p>
<p>However, in both cases…the onus is on you as the end-user to detect the discrepancy and to notify the bank/card issuers in a timely manner as specified in the card contract.</p>
<p>“However, in both cases…the onus is on you as the end-user to detect the discrepancy and to notify the bank/card issuers in a timely manner as specified in the card contract.”</p>
<p>Most certainly. I would never count on the credit card/bank to notify me. We finally had to tell our credit card company to knock it off, when they kept freezing our card and calling us with possible fraudulent use every time we used it at a restaurant in a different state. Yes, in California one day and Texas the next. So? Been doing this on this same credit card for 15 years, what’s the point?</p>
<p>But the difference to me would be if the credit card company will stop payment on a bad charge, and the bank won’t. That’s a big deal.</p>
<p>“I seem to remember there is some kind of hassle with paying for a hotel room with a debit card”</p>
<p>I understand why hotels want a credit card for “incidentals.” Guest checks in, gives Debit Card for incidentals, then drinks up everything in the mini-bar and walks away with a few towels and a lamp or two for good measure. (Of course if you only stay in Motel 6’s …)</p>
<p>
</p>
<p>I’m not sure about disputed charges. I’ve never had one. On the other hand, I did have an account emptied while abroad a number of years ago. (The thieves substituted their own card reader for the bank’s. Amazing.) Informed the bank as soon as it was detected, got every cent back without any problem at all. The restitution took a while, since I was away for three weeks and obviously not able to complete paperwork, so it was a god thing that I had access to another account in the meantime. If the same thing had happened to a credit card while traveling, would it have been any different? Don’t think so.</p>
<p>I’ve always used my debit card for the hotels that want a card on file for incidentals. Never had a question.</p>
<p>Rental car agencies won’t use debit cards since they have to pay a large hold on the account. Most people don’t have enough cash in checking to cover. </p>
<p>You have virtually NO protection with a debit card. Avoid like the plague.</p>
<p>Just not true.</p>
<p>It’s really funny, my dad has been urging me to get a credit card.
I’m a student and a bit reluctant with this process since I have seen so many people’s lives ruined by credit cards in America. It scares me to rely on such a thing. But my dad made some valid points with this credit card business. He said not to rely on it, just use it as you would use a debit for small expenses, just to get my credit score up. My dad’s an entrepreneur and he told me that it may be near impossible to survive without credit in the US, as it comes in handy for stuff like buying a house and/or any other loans needed for a basis.
It’s a good argument, but I am always hoping that I will be able to pay everything immediately as opposed to going into any debt. Although that may be near impossible lol</p>
<p>We are glad our kids credit cards since they went off to college. We feel they offer cardholders more protection than cash, credit cards or checks. They have been totally responsible and good with using them. S did have his wallet with CC stolen once and D had wallet misplaced with CC once. Both times CCard Co was called and immediately placed hold on CC. </p>
<p>If you pay off bills immediately and never carry a balance, you can enjoy benefits of CCs without burdens. We have earned $1000s of $$$$ in cash back from our CCs and NEVER paid any interest or finance charges. We all think credit cards are great!</p>
<p>Much easier to rent car or hotel room with CC. </p>
<p>As an added benefit for car rentals, many CCs offer varying insurance protection. Additionally, ourpreferred CC gives some protection for purchases, like extended warranting this is especially great for electronics.</p>
<p>Iron Maiden-
I use debit cards often. Our card was hacked and several thousand dollars were charged against our account. The bank returned all of the funds within 24 hours and those charges were forgiven. </p>
<p>We just used Enterprise to rent a car and used a debit card. They did ask to see a return airline ticket, but only charged our card the actual fees plus a tank of gas.</p>
<p>
</p>
<p>The way the bank I had explained it…and later confirmed by other bank employees is that the debit card is treated like a check. You can issue a stop payment on it…but it only works if the cash hasn’t been withdrawn from the check/debit card charge. </p>
<p>Once the cash is withdrawn, it’s out of the bank’s hands and you’re on your own vis a vis the fraudulent merchant regarding defective goods or non-delivered goods. </p>
<p>
</p>
<p>Agreed…especially once the merchant has cashed in that debit charge. That’s been my experience and something every bank employee or those who work in the industry has told me. </p>
<p>Only exceptions to this is if there are banks who are willing to extend credit card like protections to their issued debit cards. However, they are not very commonplace and from the experience of several friends with such supposed protections in their contract…getting the bank to honor those protections can be an aggravating hassle.</p>
<p>Consolidation, saying something is not true does not make it so. Please provide facts. Like: [Debit</a> vs. Credit: The Facts About Fraud Liability](<a href=“When Using a Debit or Credit Card, Know Your Liability for Fraud - ABC News”>When Using a Debit or Credit Card, Know Your Liability for Fraud - ABC News)</p>
<p>Research Reg E</p>
<p>ERAC does sometimes let you rent with a debit card. Depends on the branch. Still a bad idea.</p>