Current Events > Nani the fuck @ debit card being the most popular option in the poll >_>

(+) Yeah! (+)

https://gamefaqs.gamespot.com/poll/8103-how-do-you-pay-for-most-of-the-things-you-buy

Bruh, get a credit card. Literally no downsides if you pay if off on time and don't accrue interest.

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Credit cards make it real easy to lose track of how much you're spending. You can only spend as much money as you have in your account if you have a debit card. Friend of mine also swears by having a debit Visa.

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Alucard188 posted...

Credit cards make it real easy to lose track of how much you're spending. You can only spend as much money as you have in your account if you have a debit card. Friend of mine also swears by having a debit Visa.

Aren't there apps that show your balance?

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Dey are crazy, it's much safer using a credit card
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ssj3vegeta_ posted...

Dey are crazy, it's much safer using a credit card

Exactly. If your CC gets stolen, it's way easier to get that transaction cancelled than if your debit gets stolen and you gotta fight with your bank over fraudulent purchases.

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NeonOctopus posted...

Aren't there apps that show your balance?

There are. There are also apps that track your spending if you tie your activity to them. Still, a credit card is money you don't have with interest attached to it. I understand how undesirable that is when you literally have your money in your own account.

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As long as you pay it off right away and you're smart about your spending, it's no different. Except you're getting rewards and building credit.

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NeonOctopus posted...

Exactly. If your CC gets stolen, it's way easier to get that transaction cancelled than if your debit gets stolen and you gotta fight with your bank over fraudulent purchases.

Yeaaaah, last year my info for my debit card got stolen. I spent less than an hour in my local bank and had a new card and a provisional reimbursement in that time. And yes, the it was ruled in that the purchases were fradulent. Not sure what sort of shitty banks you guys are going to, but mine did fine by me.
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NeonOctopus posted...

Exactly. If your CC gets stolen, it's way easier to get that transaction cancelled than if your debit gets stolen and you gotta fight with your bank over fraudulent purchases.

My friend also doesn't understand this mindset, as she's never had an issue with her bank overturning fraudulent purchases. I personally like using credit cards, as I find it easy to control my spending. I try to keep purchases on it at around $600 a month (food and luxuries), though things like car repairs impede that.

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The fraud issues have likely improved over time. CC still better though

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NeonOctopus posted...

Literally no downsides if you pay if off on time and don't accrue interest.

You just highlighted a massive downside and the reason why we had a GFC

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NeonOctopus posted...

As long as you pay it off right away and you're smart about your spending, it's no different. Except you're getting rewards and building credit.

If, sure.

But that's ignoring the reality that most people don't do this.

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No option for I steal all my shit?

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Lol just pay your CC off every few days. The only time I use my debit card is to take cash out of the ATM if Im going on a trip. Have fun not building easy credit and not getting rewards, debit card users.

Don't use a debit card for hotels, rental cars, or U-Hauls.

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pinky0926 posted...

You just highlighted a massive downside and the reason why we had a GFC

Git gud then

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Barely even use my debit card. Cash or CC for everything

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if you pay your bill on time and never hit your limit your credit score will never be bad

just a fun fact: debt in the US is a boogeyman made up by creditors and the government into tricking you to give them more money and control your spending power.

i dont care how long id be in debt for so long as i can make the monthly payments. a little lifehack around a capitalistic society
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Doesn't paying off your entire CC monthly actually not build interest as they WANT you to hold a balance?

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Jeff AKA Snoopy posted...

Doesn't paying off your entire CC monthly actually not build interest as they WANT you to hold a balance?

I was told that it doesn't make a difference and that having your balance below 30% of your credit limit is something they want.

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credit cards are basically better in every way

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I use debit for most things AND have a credit score around 800.

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NeonOctopus posted...

Git gud then

I have two credit cards and no debt

But they are a very bad idea for a lot of people

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I've never understood this argument. Credit card balance aren't a black box. It takes 60 seconds to log onto your account to see how much you owe. That, combined with a simple budget, should be more than enough to ensure you don't spend too much.

The real issue isn't credit card vs debit card. It's using debit cards as a budgeting tool.

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theres nothing wrong with debt

that is a scare tactic reinforced repeatedly to keep people in control of their spending. until the credit score system changes where they penalize you for having debt for an extended amount of time, theres no reason to not use a credit card as many times as you want up to the limit
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NeonOctopus posted...

Exactly. If your CC gets stolen, it's way easier to get that transaction cancelled than if your debit gets stolen and you gotta fight with your bank over fraudulent purchases.

Alternatively don't have a shitty bank.

I had my card info jacked in Albuquerque a few years back, USAA went line-by-line with me and refunded everything upfront, then a few months later were just like "oh by the way it's taken care of cheers."

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Does using credit card build up your credit history and you can get loans more easily in the future

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Cobra1010 posted...

Does using credit card build up your credit history and you can get loans more easily in the future

As long as you use it well, it shows you are responsible and can make payments and raise your credit score, which opens more doors for you with loans.

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Jeff AKA Snoopy posted...

Doesn't paying off your entire CC monthly actually not build interest as they WANT you to hold a balance?

Assuming you mean build credit...
As long as you let the charges stay until its posted to the statement/bill, it will be reported to the credit bureaus

You only get charged interest on any balance that persists from one statement to the next, so if you pay off the entire statement, you can keep charging to the card and the new months purchases wont accrue any interest. Those get posted the next month, you pay them off, and keep on truckin


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Not taking on debt of any kind is smart.

Credit cards are the most profitable things of all history for a reason

Debit cards are just as safe, and if it has a Visa or other large creditor's logo, it has the exact same protections as their credit cards

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NeonOctopus posted...

I was told that it doesn't make a difference and that having your balance below 30% of your credit limit is something they want.

Below 30% is positive. Below 10% Is ideal.

Its a myth that carrying a balance is better though. It doesnt need to show on a statement for credit use to be shown. Your credit use is still reported.

Its installment accounts that you dont want to pay off. Revolving accounts like Credit cards you do.

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Armchair quarterback finance time. There's basically three kinds of credit card debt, and people get this wrong and because they get this wrong they get themselves into trouble.

1. The first kind is the unavoidable kind. You get into an accident or some trouble and you simply don't have the cash or the assets to cover it, so you go into debt. This sucks but not much you can do. People will make arguments to say you should have had an emergency fund, but those arguments always strike me as incredibly privileged.
2. The second kind of debt is the smart kind. You buy something you don't have the capital for because having it now will either save you money in the long run or create a safe investment opportunity that will generate more cash than it costs in a reasonable timeframe. A simple example would be buying a lawn mower you don't have the cash flow for because paying a gardener $20 a week for the next year is going to be more expensive overall. Much cheaper than having to pay a gardener thousands of dollars to fix an overgrown weed jungle because you left it too long.
3. The third kind is the stupid kind. You buy something on your credit card you don't need, can't afford and is not an investment, and you convince yourself that you had to buy it or you were going to eventually anyway. This creates the bad habit of thinking that simply because the debt is available to you, you should create more for yourself. "I mean what does it matter anyway? So it costs me $4 in interest a month, no big deal." Typical purchases are flat screen TVs, new iPhones, luxury cars, or really any non essential item.

People in category 3 tend to snowball their debt very quickly. So my CC is sitting at 5% each month. next month is 10%. Then 20%. I got a raise, I can afford 30%. Ok that one is maxed out but I can easily afford the repayments, let's open another one. Wait how did I end up with 50K in debt? How am I generating $200 of interest every month? I only make 40K a year...

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Credit card means free rewards and good credit score, if used correctly. Ive stayed at 5 star hotels with mine for free. We just pay off the statement balance every month. But some people are really bad with money and should not own them. Most of my family members (my mom, dad, brother and sister) have maxed out cards where they are stuck paying endless interest on. If someone only uses debit cards, then I tend to think they lack discipline or know they are bad with money.

Unsugarized_Foo posted...

Not taking on debt of any kind is smart.

Credit cards are the most profitable things of all history for a reason

Debit cards are just as safe, and if it has a Visa or other large creditor's logo, it has the exact same protections as their credit cards

I bought into this line of thinking too when I was younger, and then at 26 I had no credit history and couldn't rent, buy a car, or make other important purchases.
looking back, not having a credit card is incredibly dumb. your credit score is the gateway to just about every financial transaction, and unfortunately that's the way the world works.
just keep track of your credit purchases like any reasonable person. a debit card is nice and all for the ATM withdrawals, but you can have a credit card also to build credit and get rewards points.

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Using a credit card and paying the balance off every month is the best way to go.

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Unsugarized_Foo posted...

Not taking on debt of any kind is smart.

Credit cards are the most profitable things of all history for a reason

Debit cards are just as safe, and if it has a Visa or other large creditor's logo, it has the exact same protections as their credit cards

good luck getting a car, mortgage, etc without any credit history. hell you cant even sign up for a cell phone plan without credit

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literally no downsides except the downsides

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Romulox28 posted...

good luck getting a car, mortgage, etc without any credit history. hell you cant even sign up for a cell phone plan without credit

As a non-American, this is outright bizarre to me. How are Americans okay with such important things depending an a number that's calculated with a secret formula?

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Romulox28 posted...

good luck getting a car, mortgage, etc without any credit history. hell you cant even sign up for a cell phone plan without credit

If someone can get by without debt, they most likely have the privilege of paying things in full. To be fair.

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That money on that debit card is you know money not credit, and my bank covers up too 100,000 if the info is stolen, which as a single guy in a one bedroom apartment is more money than I ever have in the account to begin with.

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Hornezz posted...

As a non-American, this is outright bizarre to me. How are Americans okay with such important things depending an a number that's calculated with a secret formula?

Maybe because the formula isnt secret.

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cuttin_in_farm posted...

If someone can get by without debt, they most likely have the privilege of paying things in full. To be fair.

Taking out and paying off loans also builds credit.

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ZeroX91 posted...

Taking out and paying off loans also builds credit.

Okay?

Why did you quote me?

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cuttin_in_farm posted...

Okay?

Why did you quote me?

Quoted the wrong person...lol

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cuttin_in_farm posted...

Maybe because the formula isnt secret.

Yes it is. Fico only gives out a vague idea on what it's based on.

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Hornezz posted...

As a non-American, this is outright bizarre to me. How are Americans okay with such important things depending an a number that's calculated with a secret formula?

Hornezz posted...

As a non-American, this is outright bizarre to me. How are Americans okay with such important things depending an a number that's calculated with a secret formula?

Because the global elites want us to transition to a credit based economy and funnel out any actual wealth for themselves....on the plus side though that WeChat app is pretty convenient

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Credit card for online things, but rural Japan and credit card is not a good combination. I mainly use cash.

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Hornezz posted...

Yes it is. Fico only gives out a vague idea on what it's based on.

Vague? Lol.



There you go. Mystery solved.

The reason people have trouble making heads or tails is because people dont know whats good (I.E, is five years of credit age really good?), and people dont consider factors overall (deferring a school loan may not cause a missed payment, but interest can increase total amount owed).

Not to mention not every lender reports to every bureau.

Its really not that complicated. Theres different scoring models, sure, but in general that graph is safe to go by. Credit history matters more than credit score anyway.

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