Credit vs. Debit
Things to Note
Too much spending on your credit card can leave you in debt. Make sure you pay your bills on time!
Do your research about what type of card is best for you. In general, many people use a debit card for everyday spending and a credit card for things like internet purchases.
Make sure you pay off your credit card balance to avoid fees!
Credit Cards
Spending with a credit card means you are spending money that is borrowed from the bank. This means that you have to pay off the balance of your credit card each month in order to pay the bank back. If you pay off the balance each month, you do not have to worry about extra fees.
Credit cards generally offer better protections against things like fraud. They also help you to build credit, which is useful information that lets banks, employers, and other institutions identify you.
Debit Cards
Spending with a debit card means you are spending your money. When it's gone, it's gone. Debit cards don't have ways to build interest and they typically have less fees than credit cards do. They also help you avoid debt accumulation because you're not worrying about paying off the bank each month.
You have to apply to receive a credit card. If you have a history of bad credit or no credit at all, the credit cards you will be eligible for may not be the best. For more rewards and perks, you have to have a higher credit score. More information about credit scores can be found here.
Resource: Direct Express Prepaid Debit Card
"The Direct Express card is a prepaid debit card option for federal benefit recipients to receive their benefits electronically....Anyone receiving Social Security, Supplemental Security Income, VA or other federal benefit payments can enroll."
Apply on the GoDirect Website.
Resource: Bluebird
Bluebird partners with Walmart, American Express, and Visa. The mobile app allows you to pay bills, transfer money, and deposit checks. You can add cash for free at Walmart.
Bluebird offers a prepaid debit account and a bank account.
You can also pay for your GED with this account!
Check out more here.
Resources for those with poor credit:
Bank Of America Cash Back Secured credit card - credit card through Bank of America that helps rebuild or start building credit through cash back.
U.S. Bank Secured Visa Card - credit card from U.S. Bank to start rebuilding or starting a credit line.