Poll of the Day > For those that have credit and debit cards.

(+) Yeah! (+)

Why would anyone prefer using debit over credit?

I see a ton of people say they prefer using their debit card but... why?

Credit allows you to build a good credit score and allows rewards that you can use on other purchases. I built $300 of rewards of my card and used to pay some games I've been wanting. With debit cards it literally just takes the money out of your bank account with no actual reward for making your payments.

Some people dont like using money they dont have... And depending on your spending habits and stuff, you might end up paying more because of interest.
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Not to mention credit cards have significantly better fraud protection versus debit cards.

You can't fall into deep credit card debt with compounding interest by only using a debit card, but if you can spend within your means and make all your payments on time, a credit card is a much better tool.

I mainly use credit for the cash back options.

Because you can build your credit record fine with discrete purchases. I prefer debit for general usage knowing I'm not going to go in to debt.
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In a perfect world you would use credit as the primary to rack up milage or points, then pay off your balance before or at your next statement to avoid interest charges. That way you maintain the max value for every dollar you spend (bonus if your bank does reward points as well) heck if you create a checking account to do this you can bypass the debit card fee some banks have recently started charging.

I am trying to get set up for everything to be on direct draft from my ccard again however 4 years without a paycheck hs kinda wrecked my credit. Atleast its not hard to build back I am around 690 with my fico score.

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If I use this one program to send somebody I know money a credit card racks up a 25% interest fee. With debit that fee does not exist(though the 4.75 processing fee exists either way).

credit 90% of the time though.

Been as debit cards take money I actually have in my bank that's better for me. I don't like owing money.

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Debit cards are really dangerous because if someone manages to steal the number, they can pull money directly out of your account and the bank isn't required to refund that money until after they complete their investigation. With a credit card any disputed charges are placed on hold and you don't have to pay them, so you're not out any money.

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Some people have self control issues. It's better they use debit.

I get the impression that the credit card industry makes a lot of money by exploiting people who get stuck in a vicious cycle of debt. That's not something I'm comfortable supporting, even though it would benefit me personally.

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LinkPizza posted...

Some people dont like using money they dont have... And depending on your spending habits and stuff, you might end up paying more because of interest.

This right here.

I won't use a credit card and won't spend money I don't have. If I can't afford it, I don't buy it.

captpackrat posted...

Debit cards are really dangerous because if someone manages to steal the number, they can pull money directly out of your account and the bank isn't required to refund that money until after they complete their investigation. With a credit card any disputed charges are placed on hold and you don't have to pay them, so you're not out any money.

I'm pretty sure they will want the pin number for any sort of transaction like that so unless you keep your Debit Card+Pin together this is unlikely to happen. Not saying it's impossible but nearly anytime you use a Debit card at a bank they will either check ID and/or require a PIN. If you are speaking of online banking or something that requires a User/Pass to access for most people just having the Debit card number doesn't give you access.

I kept all my credit cards totally and completely away from my wife for the whole 20 years we were married.

She had sever credit card debt, student loan debt and owed the IRS over $2000 when we met/got married.

I have never owed money at the end of a month to a credit card though I have had them most of my adult life.

My wife was an expert at spending money, and I am an expert at saving it.

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funkyfritter posted...

I get the impression that the credit card industry makes a lot of money by exploiting people who get stuck in a vicious cycle of debt. That's not something I'm comfortable supporting, even though it would benefit me personally.

Came to say this. Those rewards you get are coming from a single mother going into credit card debt trying to support her kid.

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wolfy42 posted...

My wife was an expert at spending money, and I am an expert at saving it.

Did it even out when you were together?
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Monopoman posted...

I'm pretty sure they will want the pin number for any sort of transaction like that so unless you keep your Debit Card+Pin together this is unlikely to happen. Not saying it's impossible but nearly anytime you use a Debit card at a bank they will either check ID and/or require a PIN. If you are speaking of online banking or something that requires a User/Pass to access for most people just having the Debit card number doesn't give you access.

Most debit cards can be used like credit cards; these are generally marked with the logo of a credit card network such as Visa, Mastercard, or American Express. Most places do not require a PIN when used in this fashion, and even on the PIN pads that ask for a PIN, you can usually hit CANCEL to use a signature instead of a PIN. My bank actually requires this for the transaction to qualify for cash back rewards. For online or phone transactions, a PIN, username or password is almost never required, but most places do require the security code normally printed on the back of the card.

https://usa.visa.com/support/consumer/debit-cards.html#Sign_or_use_your_PIN_-e8be

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LinkPizza posted...

Did it even out when you were together?

In a round about way, I just limited the amount she had to spend so she didn't spend it all lol. But no, I didn't save money really when we were married, just before, and after, I just kept us from going into debt lol.

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blu posted...

Some people have self control issues. It's better they use debit.

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You can build your credit with a cell phone. Thats how I got mine up. Debit > credit.

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captpackrat posted...

Most debit cards can be used like credit cards; these are generally marked with the logo of a credit card network such as Visa, Mastercard, or American Express. Most places do not require a PIN when used in this fashion, and even on the PIN pads that ask for a PIN, you can usually hit CANCEL to use a signature instead of a PIN. My bank actually requires this for the transaction to qualify for cash back rewards. For online or phone transactions, a PIN, username or password is almost never required, but most places do require the security code normally printed on the back of the card.

https://usa.visa.com/support/consumer/debit-cards.html#Sign_or_use_your_PIN_-e8be

If you use the card number in the store, you'll also need more than the card number. If they take my card, I would definitely notice, though. And freeze it. And later cancel.
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LinkPizza posted...

If you use the card number in the store, you'll also need more than the card number. If they take my card, I would definitely notice, though. And freeze it. And later cancel.

Last time someone stole my credit card info they used it to make purchases from eBay. And stealing that info is pretty easy, either by hacking a store's network (as happened at Target) or attaching a skimmer to an ATM, gas pump, or PIN pad. A skimmer can also be used to make a physical cloned card to use in stores.





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It just cuts out the extra step of paying off the credit card each month

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captpackrat posted...

Last time someone stole my credit card info they used it to make purchases from eBay. And stealing that info is pretty easy, either by hacking a store's network (as happened at Target) or attaching a skimmer to an ATM, gas pump, or PIN pad. A skimmer can also be used to make a physical cloned card to use in stores.

Yeah. But eBay is online instead of a physical store. Though, how they got enough info to use it is weird. As for the stores, they could hack they with credit cards, too. And I dont know about your banks, but my banks offers credit AND debit protection. At least for confirmed fraud. Though, that brings up another question. I know some debit cards get used like credit cards. But couldnt the same credit card protections be used on a debit card if its used like a credit card?
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Venmo is pretty cool when you dont have cash on hand at certain moments.

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LinkPizza posted...

Yeah. But eBay is online instead of a physical store. Though, how they got enough info to use it is weird. As for the stores, they could hack they with credit cards, too. And I dont know about your banks, but my banks offers credit AND debit protection. At least for confirmed fraud. Though, that brings up another question. I know some debit cards get used like credit cards. But couldnt the same credit card protections be used on a debit card if its used like a credit card?

Yes, most debit cards through one of the major card networks (Visa, MasterCard, etc) get the same level of protection as a credit card when you use it like a credit card (i.e., with a signature or online). But the difference is, with credit card fraud you haven't actually lost anything yet, and when you report it, any resulting charges are suspended and you don't have to pay them. But if someone uses your debit card illegally, that money comes right out of your bank account, which can result in bounced checks or having legitimate payments declined, plus you generally don't get your money back immediately when you do report it, depending on the bank it may take days or weeks and you're on the hook for any overdraft charges or bounced check fees. And you might not get all your money back, in the US you may be liable for up to $50 in charges if you report it within 48 hours, $500 if it's over 48 hours.

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captpackrat posted...

Yes, most debit cards through one of the major card networks (Visa, MasterCard, etc) get the same level of protection as a credit card when you use it like a credit card (i.e., with a signature or online). But the difference is, with credit card fraud you haven't actually lost anything yet, and when you report it, any resulting charges are suspended and you don't have to pay them. But if someone uses your debit card illegally, that money comes right out of your bank account, which can result in bounced checks or having legitimate payments declined, plus you generally don't get your money back immediately when you do report it, depending on the bank it may take days or weeks and you're on the hook for any overdraft charges or bounced check fees. And you might not get all your money back, in the US you may be liable for up to $50 in charges if you report it within 48 hours, $500 if it's over 48 hours.

With a credit card, you haven.this lost anything yet, but that still means you cant use that money. Which, for most people, probably isnt good if they needed the credit card... and I dont know about those charges. I never had to worry about that before. And got my money back almost immediately... Maybe some banks just suck...
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I used to use debit cause I liked the transaction to be done and over with, but my banks rewards program won me over and now I only use credit.

JfAtS1O3N posted...

Came to say this. Those rewards you get are coming from a single mother going into credit card debt trying to support her kid.

My iPhone and clothing comes from slave factories. It also gives many people real jobs.

At least a lot of those rewards come from people who have good situations just living above their means and gives people jobs.

Even if you withdraw from society its hard to not trace back something you own or benefit from to something that hurts another.

TooTooP3 posted...

Why would anyone prefer using debit over credit?

I see a ton of people say they prefer using their debit card but... why?

Credit allows you to build a good credit score and allows rewards that you can use on other purchases. I built $300 of rewards of my card and used to pay some games I've been wanting. With debit cards it literally just takes the money out of your bank account with no actual reward for making your payments.

There's no interest if you pay with your debit card. Something that costs $50 will only cost you the $50 from your bank instantly. Whereas a credit card you'll end up paying more later on. Ex. a card with a 20% APR would make a $50 purchase $60 if I'm not mistaken. $10 doesn't sound like much but if you're buying lots of big ticket items it will really add up fast.

funkyfritter posted...

I get the impression that the credit card industry makes a lot of money by exploiting people who get stuck in a vicious cycle of debt.

This is why so many college kids end up with tons of credit cards. CC companies know that students are (mostly) irresponsible with their spending habits and they'll make a ton of money off them.

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Black_Crusher posted...

a card with a 20% APR would make a $50 purchase $60 if I'm not mistaken.

You're mistaken. That's only if you don't pay it off before the first monthly acruing on that charge. If you pay it off before then, it costs you nothing.
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I primarily use debit for small businesses wherever possible, since the fees associated with credit cards (especially reward cards, which are often in the 3-4% range) can be a pretty big deal for them. For bigger companies, they're in a much better position to eat the loss and/or can negotiate better rates due to their buying power (see: that time a few years ago that Walmart stopped accepting Visa for a week or two), so I'll take the rewards.

captpackrat posted...

Most debit cards can be used like credit cards; these are generally marked with the logo of a credit card network such as Visa, Mastercard, or American Express. Most places do not require a PIN when used in this fashion, and even on the PIN pads that ask for a PIN, you can usually hit CANCEL to use a signature instead of a PIN. My bank actually requires this for the transaction to qualify for cash back rewards. For online or phone transactions, a PIN, username or password is almost never required, but most places do require the security code normally printed on the back of the card.

https://usa.visa.com/support/consumer/debit-cards.html#Sign_or_use_your_PIN_-e8be

You said they could pull money directly out of the account, I realize yuou can use the damn thing like a credit card. My point was even if someone steals my Debit Card taking cash out requires more like PIN or other information. "Could they go down to Best Buy and try to buy a TV or something?" Sure. "Could they walk into my bank or use an ATM to draw cash out?" Probably not.

I never claimed some thief can't go take a debit card and buy shit but with a credit card a thief can go buy shit also, if someone swipes my credit card there is actually more space on there to make purchases.

Black_Crusher posted...

There's no interest if you pay with your debit card. Something that costs $50 will only cost you the $50 from your bank instantly. Whereas a credit card you'll end up paying more later on. Ex. a card with a 20% APR would make a $50 purchase $60 if I'm not mistaken. $10 doesn't sound like much but if you're buying lots of big ticket items it will really add up fast.

This is why so many college kids end up with tons of credit cards. CC companies know that students are (mostly) irresponsible with their spending habits and they'll make a ton of money off them.

Every credit card has a 30 day grace period before you pay a single cent in Interest. This is how people use credit cards responsibly they buy say $150 worth of stuff over a month then pay it off completely and only pay back $150 for that stuff.