Dear everyday spender,

Discover IT CardLet me break it down, a debit card is a great way to replace cash. The cardholder puts their money in the bank, and the debit card revolves off of this “prepaid” checking account. In other words, the user has given their money to the bank, and the bank distributes it whenever transactions post.

Remember Jane? She used her debit card as a great way to budget, plus, avoid all that heavy loose change. She recommends using the debit card for developing good habits.

For clarification, a debit card does not build your credit or affect your credit score.

For younger readers, or those in the process of rebuilding their credit, it’s important to mention many credit card companies offer not only student credit cards, but secured cards. Secured credit cards are cards the user prepays to build their credit score.

In terms of a secured credit card, we recommend the Discover It card:

  • no annual or monthly fee
  • deposit is refundable & sets the credit limit
  • Earn cash back from purchases, which they’ll double after the 1st year
  • Discover will begin to monitor your performance after 7 months

Remember the difference: a debit card pulls from a checking account, while a secured credit card draws from a prepaid credit limit.

Transitioning –  a debit card to bridge the gap to credit responsibility