The Importance Of Debit Cards

College is when many of us spread our wings and leave the nest. Away from our parents and guardians that protected us from what was out there to hurt us. Commercial banks’ most favorite hunting ground is at college campuses. Young adults who have been told to get a credit card, or buy a car with an auto loan so they can “build credit” because that is a mature thing to do. Well here we are, American college students, ready to do what everyone is tell us to do, start a credit score. But is that really we should do? Obtaining a credit score is an important aspect of finance to many, but credit had developed into a virus after thousands of years that has affected Americans mindset, our behaviors, and how we will live our lives in the future. So

All of that is nice and true, but why can’t we use a debit card instead. Debit cards are just as convenient as credit cards, if not more because you don’t have to go to your computer and make a payment every month; it’s already taken out of your account. Debit cards are just as safe to use as credit card. A matter a fact, you can run your debit card as a credit card if you wanted no one to know your PIN number. For emergencies, debit cards are just as effective as credit card. If an emergency does occur like your car breaking down during your travels, you can get on the internet, make a transaction from your emergency fund account, which I’m sure all of the smarties that told you to get a credit card told you to start as well, to your checking account. Now you have the funds to attend to your emergency at your fingertips. Racking up a huge debt is the last thing you want to do during an emergency anyway, so why is everyone telling us to get a credit

E. Issa and Dave Ramsey both explain how you can get a mortgage for your house without any credit. The key is FHA loans from the U.S. Department of Housing and Urban Development. To be able to get this type of loan you need to present a one year prior history of no missed rental payments, no more than one missed payment of anything else (telephone electricity, cable television, gas, insurance, etc.), no collection accounts other than medical-related incidents, debts that do not amount to 43% of your yearly income or more, and have enough cash reserved for at least 2 months of predetermined mortgage payments. It is a lot of hard work but it can be done (E. Issa). If one works hard enough getting this type of loan can be easy and sweetening the deal with a large down payment doesn’t