Debt, risks, etc. with credit cards, debit cards, accounts, CDs, etc. What is most efficient and least risky?

I am 17 and I want to have a bank/savings/etc. account to get a debit/credit/etc. card to be able to pay for things over the internet. But I've heard so much about people in debts with their credit cards (don't think I've ever heard of someone being in debt with their debit card), so could you all explain to me what are the risks of each thing that you can have to pay for things online.

3 Answers

  • 1 decade ago
    Best Answer

    Your best option is to use a prepaid debit card. You can buy these at walmart and other places. If you use a debit card linked to a checking account then you run the risk of overdrawing your account and getting overdraft fees which can be expensive. You also run the risk of someone stealing your debit card and using your checking account and stealing all of your money and causing you more overdraft fees. Credit cards charge you a lot of interest and other fees. I would recommend to buy a prepaid debit card to buy things over the internet. I would NEVER EVER EVER put a bank debit card number or credit card number on the internet to buy anything because I work at a bank and I have seen many people get money stolen from them this way.

  • 1 decade ago

    I don't like debit cards. It takes the money right out of your checking account and can be very dangerous if stolen. I also think it makes balancing your checkbook a mess. A prepaid card is great, but you would have to keep putting money on the card and if you don't use it often that cash will just sit there, doing nothing for you. A credit card is great, if you have control and know what you can and can not pay off each month. I never carry a balance and 2% of every purchase goes into my kids college fund. If you can qualify for a credit card I would go that route. Just use it as you would cash.

    As for using it over the internet, at least mine has the option of creating a one time only credit card number to use of each purchase. If anyone steals it, it is useless. I'm sure lots of companies are doing that now. I've used my credit card online for years. I've only had one time the number was stolen, the credit card called me as it was suspicious and they took it right off my account and issued me a new card. A debit card or a prepaid card can't do that.

  • 1 decade ago

    ok the reason you have never heard of people being in debt over a debt card is because it comes straight out of checking account you will not get a bill at the end of the month just make sure you dont spend more then you have since you are under 18 you cant have a credit card credit card is like a emergency thing becaus ethey are lending you money and you get a bill at the end of the month and you have to pay interst but since you are under 18 your parents have to open you a account you cant without them so start there

Still have questions? Get your answers by asking now.