Current Events > Are millenials who use debit over credit cards low information consumers?

(+) Yeah! (+)

https://www.bloomberg.com/news/articles/2018-04-25/visa-jumps-on-debit-card-spending-by-credit-averse-millennials

I literally cannot see the upside of using a debit card unless you do not have self control. Credit cards build credit and get you reward points and protects you from skimming way better than a debit.

Other than not being able to control yourself, why would you use a debit card?

No cosigner
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Anyone can use your credit card

Your debit card has a pin number
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yes
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Younger consumers prefer to pay with debit cards or cash after cultivating an aversion to credit while coming of age during the financial crisis. They also dont typically qualify for top credit cards until becoming older.

From your own link.
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Maybe, as you say, one does not have self-control.

They don't build those skyscrapers by giving away sky miles.
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Bloodychess posted...

Anyone can use your credit card

Your debit card has a pin number

Using chip technology, you can skip the PIN by selecting credit instead of debit when using your debit card.
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Bloodychess posted...

Anyone can use your credit card

Your debit card has a pin number

So you would dispute it and charges go away....

CruelBuffalo posted...

Bloodychess posted...

Anyone can use your credit card

Your debit card has a pin number

So you would dispute it and charges go away....

You can do that with both types of card.
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It's easier to do with a credit card, especially if it's already been used
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Debit cards are just the new cash. Why wouldn't you use both? I pay off my credit card with my debit card.
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CruelBuffalo posted...

Credit cards build credit and get you reward points and protects you from skimming way better than a debit.

Take this with a grain of salt(Incoming opinion)

Most people cannot control themselves this is why Visa wants you to use your Visa and not your debit card.

They want you to spend more than you have, its what is glorified now-a-days. You need that iphone ten, that new hot video game, eat out at that one restaurant, or get that tablet, when in reality you don't.

So you end up spending more than you have and become in debt to credit card companies who will be pimping your bank account for the rest of your life.

Credit Cards do have places in our lives just not as an every day use item to always purchase other items. Read the small print and use the card to your advantage!
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the_cajun88 posted...

CruelBuffalo posted...

Bloodychess posted...

Anyone can use your credit card

Your debit card has a pin number

So you would dispute it and charges go away....

You can do that with both types of card.

Debit card takes it out of your bank account so you need to wait while the dispute is investigated and if they steal a lot of money thats a lot of headache

MACisBack posted...

Credit Cards do have places in our lives just not as an every day use item to always purchase other items

idk, I use credit cards every day. free money just sitting on the table if I used my debit instead
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no, just more risk averse than you are
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Just out of curiosity why are people so obsessed with credit in the US? Who gives a fuck if they dont get credit rating bonus from not having a credit card? Long as you dont have a negative one why the obsession?
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CruelBuffalo posted...

Bloodychess posted...

Anyone can use your credit card

Your debit card has a pin number

So you would dispute it and charges go away....

Disputing CC charges from last year was hell.
Since my card was used legit and fraudulently on the same day, Visa mailed me a list and asked me to verify what charges were legit and what were not. I verified, signed, and mailed back. Weeks later, some dumbass in a cubicle saw my input and decided to invalidate everything, despite me following the directions. 3 phone calls to Visa with different feedback each time later, I had to get a branch manager at my bank to sort out their nonsense and help me not double pay on bills.
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Crepes posted...

Just out of curiosity why are people so obsessed with credit in the US? Who gives a fuck if they dont get credit rating bonus from not having a credit card? Long as you dont have a negative one why the obsession?

Mortgages
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Crepes posted...

Just out of curiosity why are people so obsessed with credit in the US? Who gives a fuck if they dont get credit rating bonus from not having a credit card? Long as you dont have a negative one why the obsession?

You use that for home loans, car loans, etc

Its pretty much what you're saying. It's just easier to not even entertain the possibility of spending what you don't have. Also, figuring out how to maximize that 2% cash back isn't worth the time to them.

Millenials hate carrying debt after already carrying a huge student loan. It's the same reason they don't own homes. They grew up during a period where having a job wasn't a certainty.
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MACisBack posted...

Credit Cards do have places in our lives just not as an every day use item to always purchase other items. Read the small print and use the card to your advantage!

I use my credit card as an every day use item to purchase things. It's better that way.
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CruelBuffalo posted...

car loans

Which...

About that...
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Crepes posted...

Just out of curiosity why are people so obsessed with credit in the US? Who gives a fuck if they dont get credit rating bonus from not having a credit card? Long as you dont have a negative one why the obsession?

As someone who has gone from having terrible credit to having great credit, life is easier when you have good or better credit.

I'm moving to a new apartment next week and I don't have to pay a deposit because I have good credit. Some electric companies wave the deposit if you have good credit. You get lower interest rates on auto loans, personal loans, and mortgages if you have good credit.
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I should get around to it, but eh. I'm stuck in my ways.
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I don't follow the argument that using a debit card means you don't have any self control? Surely spending money you don't have on credit, is more a lack of control than being restricted to spend money you do have? (Until you go in to the overdraft and beyond at least).
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Crepes posted...

Just out of curiosity why are people so obsessed with credit in the US? Who gives a fuck if they dont get credit rating bonus from not having a credit card? Long as you dont have a negative one why the obsession?

Because it makes life easier. For example my phone cost less upfront because I had good credit. My car interest rate is very low because I have good credit. I'll probably have a good mortgage interest rate down the line, again because I have good credit.

Not only that, but it's insanely easy to have good credit. I just make all of my regular purchases on the credit card any pay them off all at once.
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CableZL posted...

Crepes posted...

Just out of curiosity why are people so obsessed with credit in the US? Who gives a fuck if they dont get credit rating bonus from not having a credit card? Long as you dont have a negative one why the obsession?

As someone who has gone from having terrible credit to having great credit, life is easier when you have good or better credit.

I'm moving to a new apartment next week and I don't have to pay a deposit because I have good credit. Some electric companies wave the deposit if you have good credit. You get lower interest rates on auto loans, personal loans, and mortgages if you have good credit.

What do you mean by terrible credit? Are you talking about a negative score due to missing payments / over stretching yourself? Or just never having credit at all?
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once my income gets above $0 y'all know imma cop that CC

think of all the stuff I could buy with it
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nableet posted...

I don't follow the argument that using a debit card means you don't have any self control? Surely spending money you don't have on credit, is more a lack of control than being restricted to spend money you do have? (Until you go in to the overdraft and beyond at least).

we're not talking about spending money you don't have

for example, say you have a weekly discretionary budget of $200
A: if you use a debit card, then you can only spend that $200 cause it's all you have and is treated like cash
B: if you use a credit card and only spend $200, then you are getting a host of benefits such as fraud protection, extended warranty, price matching, cashback, etc. depending on what card you have
C: if you use a credit card and go over $200, you're fucked because you'll be hit with late fees and interest

people who use credit responsibly fit into B and are better off for it. the bloomburg article is saying that people who fall under group A are afraid of becoming group C
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People talking about mortgages. I dont know if its different in the us to the UK but in the UK the mortgage is secured against the property so if you dont pay they take your property from you. Also in the UK the interest rate is more based on how much equity you have in your home and what % of the value of your home you want to borrow against. The rationale being you borrow more money compared to the value of your house its a bigger risk and ergo more interest.
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I can afford to basically get a new game for free every three months with my cash rewads
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Crepes posted...

Just out of curiosity why are people so obsessed with credit in the US? Who gives a fuck if they dont get credit rating bonus from not having a credit card? Long as you dont have a negative one why the obsession?

Because 90% of Americans don't actually have the cash to buy the things in life that are "needed" to get by. Homes, cars, phones, computers, etc. So since society says we need these things, we basically have to find a way to get them without actually paying for them up front.

Credit cards are actually less of a indicator of restraint then debit cards. Most people using credit for everyday purchases can already afford what they are buying. These are the people profiting from the perks that come with credit cards. But that's a really low percentage of the people that credit card companies target. Because they're not benefiting from someone that spends $500 a month but pays it off on time with 0% interest.
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Bloodychess posted...

Anyone can use your credit card

Your debit card has a pin number

Err.... no. I can swipe my debit card without a pin >_>
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My credit card company actually called me to report a scam charge. So that was cool.
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Crepes posted...

What do you mean by terrible credit? Are you talking about a negative score due to missing payments / over stretching yourself? Or just never having credit at all?

When I was 19, I was like 3 hours early for a doctor's appointment so I decided to go to Circuit City to look around. The guy selling TVs asked me if I wanted to buy one. I told him I didn't have that much money. He said I could sign up for a credit card and get one. Not knowing anything about credit cards and not understand that it was a terrible idea, I went over to the customer service desk and signed up for a credit card. I was immediately approved for $5000 on that card. I was so shocked that I walked out of the store without even buying anything.

I had no business with a $5000 limit credit card as a 19 year old working in retail. I didn't understand how credit worked at all back then, and I was buying EVERYTHANG on that card. Clothes, shoes, video games, food, etc. Got laid off from my job and didn't have a way to pay even the minimum balance

The balance grew to about $6000 before I finally got a steady job and could afford to start making payments every month. Took me about 2 and a half years to pay that off. My credit score was as low as 590 or so, but now it's over 800.
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CableZL posted...

Crepes posted...

What do you mean by terrible credit? Are you talking about a negative score due to missing payments / over stretching yourself? Or just never having credit at all?

When I was 19, I was like 3 hours early for a doctor's appointment so I decided to go to Circuit City to look around. The guy selling TVs asked me if I wanted to buy one. I told him I didn't have that much money. He said I could sign up for a credit card and get one. Not knowing anything about credit cards and not understand that it was a terrible idea, I went over to the customer service desk and signed up for a credit card. I was immediately approved for $5000 on that card. I was so shocked that I walked out of the store without even buying anything.

I had no business with a $5000 limit credit card as a 19 year old working in retail. I didn't understand how credit worked at all back then, and I was buying EVERYTHANG on that card. Clothes, shoes, video games, food, etc. Got laid off from my job and didn't have a way to pay even the minimum balance

The balance grew to about $6000 before I finally got a steady job and could afford to start making payments every month. Took me about 2 and a half years to pay that off. My credit score was as low as 590 or so, but now it's over 800.

I think its worrh pointing out a negative credit score is something that should be avoided. Im more interested in the people who thinking having no credit score is some massive issue.
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And that random number. You do realise that the lenders dont really use that? When doing a credit check theyll gerbil a copy of your file which includes all your history and then theyll work out their own score based on their own criteria. There are plenty of people who report being turned down credit with certain banks despite having perfect scores because each bank is different and has different criteria. This whole score thing is just a way for the credit companies to try and tempt you into buying extra services you probably dont need.
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theAteam posted...

My credit card company actually called me to report a scam charge. So that was cool.

Yeah, the process with fraudulent purchases is way different. If you have a fraudulent purchase on a credit card, you just don't pay for it and let the credit card company know that the purchase was fraudulent. They'll fight on your behalf and force the vendor to prove the purchase was legitimate.

With a debit card, a fraudulent purchase still takes YOUR money out of your account and you have to fill out fraudulent purchase forms and shit to prove YOUR case. Then you have to wait for the case to be settled by the bank to get YOUR money back.
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CableZL posted...

They'll fight on your behalf and force the vendor to prove the purchase was legitimate.

according to a friend of mine at Chase, the fraud department basically calls up the vendor and says "hey this charge is not legitimate and we're not paying it" and the vendor folds because what are they gonna do, not accept Chase cards?

edit: he also says that the debit card fraud department takes longer and isn't as supported
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Crepes posted...

And that random number. You do realise that the lenders dont really use that? When doing a credit check theyll gerbil a copy of your file which includes all your history and then theyll work out their own score based on their own criteria. There are plenty of people who report being turned down credit with certain banks despite having perfect scores because each bank is different and has different criteria. This whole score thing is just a way for the credit companies to try and tempt you into buying extra services you probably dont need.

When I bought my car, they pulled my credit report from one of the credit bureaus, so yeah, they do actually use that. Same for when I signed up for my current apartment two years ago and same for this new apartment I just recently signed up for.
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CableZL posted...

Crepes posted...

And that random number. You do realise that the lenders dont really use that? When doing a credit check theyll gerbil a copy of your file which includes all your history and then theyll work out their own score based on their own criteria. There are plenty of people who report being turned down credit with certain banks despite having perfect scores because each bank is different and has different criteria. This whole score thing is just a way for the credit companies to try and tempt you into buying extra services you probably dont need.

When I bought my car, they pulled my credit report from one of the credit bureaus, so yeah, they do actually use that. Same for when I signed up for my current apartment two years ago and same for this new apartment I just recently signed up for.

They did that for an apartment for me as well. I was right there when he pulled it and he even gave me the report afterward. Luckily my credit is good so when he saw the score he was like "ok yup here's the lease please sign it"
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CableZL posted...

Crepes posted...

And that random number. You do realise that the lenders dont really use that? When doing a credit check theyll gerbil a copy of your file which includes all your history and then theyll work out their own score based on their own criteria. There are plenty of people who report being turned down credit with certain banks despite having perfect scores because each bank is different and has different criteria. This whole score thing is just a way for the credit companies to try and tempt you into buying extra services you probably dont need.

When I bought my car, they pulled my credit report from one of the credit bureaus, so yeah, they do actually use that. Same for when I signed up for my current apartment two years ago and same for this new apartment I just recently signed up for.

Renting is a waste of money though.
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Crepes posted...

Renting is a waste of money though.

That's beside the point, but the reason I'm renting is because it's unlikely I'm going to be in the same job for 5 years or more in my line of work, especially since I'm planning on getting more and more certifications. I don't want to be stuck with a house that may or may not sell when I need it to sell. I may need to move across the country (or world) for a better paying job.
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Crepes posted...

CableZL posted...

Crepes posted...

And that random number. You do realise that the lenders dont really use that? When doing a credit check theyll gerbil a copy of your file which includes all your history and then theyll work out their own score based on their own criteria. There are plenty of people who report being turned down credit with certain banks despite having perfect scores because each bank is different and has different criteria. This whole score thing is just a way for the credit companies to try and tempt you into buying extra services you probably dont need.

When I bought my car, they pulled my credit report from one of the credit bureaus, so yeah, they do actually use that. Same for when I signed up for my current apartment two years ago and same for this new apartment I just recently signed up for.

Renting is a waste of money though.

Do you have money to buy a house outright
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Crepes posted...

I think its worrh pointing out a negative credit score is something that should be avoided. Im more interested in the people who thinking having no credit score is some massive issue.

Since credit is so ubiquitous, having no credit is often looked upon as having bad credit when it comes to lenders. Teenagers or young adults get away with having thin credit so long as they are making their payments on other things like rent, utilities, etc. If you hit your 30s with absolutely no credit history in today's world, you're gonna be looked at like a spook.
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Crepes posted...

Renting is a waste of money though.

that is not true for every situation
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prince_leo posted...

Crepes posted...

Renting is a waste of money though.

that is not true for every situation

True. Most though.
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Soviet_Poland posted...

Crepes posted...

I think its worrh pointing out a negative credit score is something that should be avoided. Im more interested in the people who thinking having no credit score is some massive issue.

Since credit is so ubiquitous, having no credit is often looked upon as having bad credit when it comes to lenders. Teenagers or young adults get away with having thin credit so long as they are making their payments on other things like rent, utilities, etc. If you hit your 30s with absolutely no credit history in today's world, you're gonna be looked at like a spook.

Proof? Other than your ass. I mean.
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Crepes posted...

Soviet_Poland posted...

Crepes posted...

I think its worrh pointing out a negative credit score is something that should be avoided. Im more interested in the people who thinking having no credit score is some massive issue.

Since credit is so ubiquitous, having no credit is often looked upon as having bad credit when it comes to lenders. Teenagers or young adults get away with having thin credit so long as they are making their payments on other things like rent, utilities, etc. If you hit your 30s with absolutely no credit history in today's world, you're gonna be looked at like a spook.

Proof? Other than your ass. I mean.

He is right
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Seems like poor people care about credit.
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