Debit Cards? So What?

You're smart if you use one, that's what. With a debit or check card, you spend your own cash. With a credit card, you are always borrowing cash from strangers and paying interest on that money – at times, massive amounts of interest.

Debit cards can pretty much be used like credit cards. I travel the world with just a debit card in my pocket.

But Are There Downsides to Debit Cards?
Check this out: You're hanging with your buddies at the mall. You get some eats, buy some clothes, and catch a movie. Each time you swipe your debit card. Before you know it, within a week's time, you've swiped your card 27 times.

What's the problem with that?!

Well, if you swiped your card 27 times, you've probably lost track of how much money you have in your checking account, right? And if that's the case, you could easily overdraw your checking account. Meaning you've probably spent more money than you had in your account.

So why is that such a big deal?

Overdrawing your account with your debit card is just like bouncing a check (writing a check for more money than you have in your account). And overdrawing your account too many times can ruin your year, your credit, and your job opportunities, for starters.

• If you use your debit card at non-DCU ATMs, you might be charged a fee. And those fees can cost you as much as $4 per use at some places.
• If total fees are higher than your account balance, bingo! – you're overdrawn. It's
  that easy.
• Being overdrawn means you can be charged a penalty fee from $20 to $70 each time!

1. For members under 23, DCU reimburses up to $5 per month in non-DCU ATM surcharges. But, if you make a lot of withdrawals, that could disappear fast. It's better to use cash less and make fewer, but larger withdrawals.
2. Record your debit card transactions – withdrawals
and purchases – in a checking register.
3. More important: Start banking online with PC Branch at dcu.org! And check your balance every day.

See How It Works!
Go to FoolProof Solo and work through "Road Trip," our module about debit cards and online banking. Head there now. Go to dcu.org and select FoolProof Solo on the right.

Cheers,
Will

Main Menu