I'm almost 54 years old and never really needed a credit card, but I'm finding it increasingly difficult to function financially without one. When I bought my last computer, I paid with an e-check, but even that option is no longer offered. I've discussed this with several acquaintances and have been advised that maybe I should start with a debit/check card. Since I know nothing about how credit or debit cards work, could someone with savvy briefly fill me in on this as well as the advantages or disadvantages of each? Will having a debit card affect my credit if I ever decide I want a credit card? Thanks a google!
Having a debit card is the same as using a check, except faster and without the checkbook. A debit card is tied to the funds in your bank and uses the Visa or Mastercard logo for access to almost any purchase--including online payments that ask for a credit card. When you pay with debit, the funds in your bank account are automatically debited. There is no finance charge (although some merchants do charge debit fees, where legal) and using a debit card does not affect your credit...at least not as far as I've seen. Your bank will issue the debit card. Ask them about it.
A debit card does not report to your credit report as it is not credit. Getting a debit card will in no way hurt your credit standing (unless you overdraft you account and refuse to pay- that would go to collections.) However, I would recommend a credit card if you have never had one. It seems that you would be very cautious in using it and not get yourself in trouble. If this is the case, good use of a credit card by simply charging gas once a month and paying off each month, would provide you with an excellent credit rating while incurring no interest charges. You will also have the plastic you need for reservations, etc. For a list of great card offers, try www.BestNewCreditCards.com Best of luck to you.
You also need a credit card to rent a car - they don't accept debit cards. (At least the major companies don't) I ran into that recently after I cancelled my only credit card.
