Noah wants to use his new DCU Check Card to buy a DVD but is unsure how the card works. Is it the same as a credit card?

The transition from cash to card is a major step for many teens and young adults. Once you and your parents decide it's OK for you to start using plastic, your next move is to learn about the pros and cons of check cards and credit cards.

the lowdown on check cards
Check cards and credit cards often look alike. They're small plastic cards that fit in your wallet or purse and can be used to buy things. The cards might look the same, but each has a different purpose.

A check card is similar to writing a check. Say you buy a $20 T-shirt with your card. The $20 is automatically taken (debited) from your checking account. If you don't have $20 in your account, it's called an overdraft and you may have to pay a fee (extra money). To keep this from happening, record all transactions in your check register right away.

You can use a DCU Visa^® Check Card wherever Visa is accepted. You may need to select credit when you swipe your card and/or sign a receipt. The money comes out of your DCU Checking Account.

the scoop on credit
A credit card is also used to make purchases. But it's different from a check card in that you are borrowing the money, which will need to be paid back with interest. Interest is a fee charged by the credit card company for letting you use the money. If you don't pay your credit card bill in full and on time, the interest can quickly build up, and that $20 T-shirt can become a $30 or $40 expense. Depending on how you use a credit card, it could build or hurt your credit rating, so it's important to use a credit card very carefully.

make the right choice
Using a check or credit card is easier than carrying cash or writing a check, but which is right for you? DCU offers a checking account and credit card designed with young adults in mind. When you open a DCU Checking Account, you'll receive a free DCU Check Card and information on how to use it. To learn more, stop by a branch or visit dcu.org.

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