If you want to have a debit card or credit card, you will need to have a bank account first (see the previous post about applying for a bank account).
DEBIT CARDS
- If you have a checking account, you can get a debit card.
- Debit cards are connected to your checking account. When you pay for something with your debit card, it automatically takes the money out of your checking account.
- You can get money out of an ATM with your debit card. You get to pick if this money is taken out of your savings account or checking account.
- Using an ATM to get cash may cost you. Generally, credit unions have no fees or very small fees for using an ATM. Banks generally have larger fees. Especially if you do not use their ATM.
- Practice using a debit card before you get a credit card.
- Watch this video about debit cards and checking accounts
CREDIT CARDS
- After you have used a debit card for a while, you may feel ready to get a credit card.
- Unlike debit cards, credit cards are not just given to you because you have a checking account. You need to fill out an application for a credit card.
- Unlike debit cards, buying something with a credit card is like borrowing money to buy it. Make sure what you buy is in your budget.
- BE CAREFUL WITH CREDIT CARDS! If overspend or forget to pay back the money you spent, you will have to pay penalties. This also gives you a bad grade on your credit score.
- Watch this video from Bellco on credit cards
- For your first credit card, start at your bank.
- Practice filling out a credit card application from WECU
