Debit Card vs. Charge Card from Amex?

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kris76
 
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Debit Card vs. Charge Card from Amex?

Postby kris76 » Wed Feb 01, 2012 11:16 pm

Hi everyone, I have been addicted to my debit card for many years, and even though I carried an Amex Green card, I pretty much just used it to rent cars, and travel purposes.

I just recently decided to get a Premier Rewards Gold card, and I thought it would be smart to use that card for my purchases, including, gas, groceries, shopping, etc. due to the points you get for doing that. Making my spending work for me a little bit, and also the protections, such as extended warranties, you get for using the Amex, that you wont get from a debit card.

I also figure I can make weekly, or bi-weekly payments, so I can kind of budget, and not have to go through the pain of making a card payment bigger than my mortgage.

All of this sounds good to me, and I see more advantages, and not many disadvantages for changing over, but I am turning to this forum, to get some more insight? Any recommendations?

Thank you for the help.


CC Deville
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Postby CC Deville » Thu Feb 02, 2012 5:42 pm

The only disadvantage I see is that Amex is not accepted everywhere.

Other than that, Amex reports to the credit bureaus, debit cards don't. Amex is offering Membership Rewards points for your purcahses, most banks have ceased their debit reward programs. Since you had an Amex Green once upon a time, your new PRG will report as opened the same year as that Amex Green-another benefit to your credit.

ooxs
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Postby ooxs » Thu Feb 02, 2012 6:50 pm

The main advantage to debit is Cash is king.

CC covered everything you need in a nut shell and as long as you charge what you can pay off, you are ahead.

Money card
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Postby Money card » Thu Feb 02, 2012 10:48 pm

Debit isn't cash debit whether it gets swiped or has the pin number, debit card isn't cash or a credit card, it isn't a charge card, it comes directly out of your checking account. it's still a debit card, it's not cash.

cash is real money while a debit card is just a card for banks to make money off of you. cash can be used at high school games for admission and snacks at the concession stand, there they don't take debit cards.

debit is more of an electronic check.

If I was going to bed bath and beyond, I was going to be spending 34 dollars with the 2 choices I would pick cash over a debit card. If I was going to burger king, and spending about 7 dollars with the 2 choices I would rather pay with cash. real money.

Hands down an American express card blows away a debit card. with the credit card you get some nice promotions last month in January I bought 2 gift cards normally there are service charges and a delivery fee or you drive down to your mall and use your gas. after the holidays they wanted to unload some gift cards I picked up 2 and 1 will be for my brother for his birthday.

you get some promotions. like on the saturday after thanksgiving small business saturday if you sign up with your american express card spend 25.00 at a local merchant not walmart, or ruby tuesdays, but a place like the pig n whistle, buddys sports corner. if you spend 35.00 you get 25 off so you would owe 10. you don't get this service with a debit card, plus you get no coupons.

when I went shopping over the holidays at the Body Shop, Banana Republic, and other stores for gift cards I used my green American Express card.

cash is great.
then credit cards
debit cards in last place.

Celestine
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Postby Celestine » Fri Feb 03, 2012 12:25 am

One mistake you did in the past is using your AMEX Green card only on rental and travel purposes. You could have stacked up more rewards points on your AMEX Green card if you used it on everywhere AMEX cards are accepted.

Use your AMEX charge card whenever you can to stack up reward points instead of using a debit card that does not give you any rewards.

Debit cards are not cash. It is I think similar to EFTs. And keep it mind that a debit card is directly connected to your checking account. So using a debit card is pretty dangerous as it is tied or directly connected to your "source" or "money storage". Only use a debit card if you need an "emergency" cash to withdraw on ATMs.

The only thing about AMEX is that almost always all establishments accepts VISA and/or Mastercard only; leaving AMEX unusable on those situations.

Different people has different spending habits. Some people including myself spends more when cash is "just around the corner". But spends less with charge cards and credit cards. Bottom line is don't spend something that you don't have.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln

sticf
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Postby sticf » Fri Feb 03, 2012 8:33 am

Kris76 --
I do not see any problems with your plan. The idea of making several payments a month instead of one big payment a month is one I have advocated for a while.

4Runner
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Postby 4Runner » Fri Feb 03, 2012 12:34 pm

Kris76,

There is no reason why you should use your charge card to pay for all your expenses. IMHO, paying with debit card is equal to pay with a charge card, you can only use the money that you have, no more, but with the debit card you do not get any benefits, and with your charge card, you can get some points, that might not be good enough at the beginning, but after sometime, they will add up and you will be able to use them for some goods.

Money card
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Postby Money card » Sat Feb 04, 2012 10:56 pm

Debit cards are not cash. It is I think similar to EFTs. And keep it mind that a debit card is directly connected to your checking account. So using a debit card is pretty dangerous as it is tied or directly connected to your "source" or "money storage". Only use a debit card if you need an "emergency" cash to withdraw on ATMs.

Different people has different spending habits. Some people including myself spends more when cash is "just around the corner". But spends less with charge cards and credit cards. Bottom line is don't spend something that you don't have.


What people like about what you said are the dangers of directly coming out of your checking account. on debit card there's no interest.

so for an example somebody has 2 kids plus a wife and him, if they don't have a lot of money they would rather use a debit card than pay interest on a credit card. you know if somebody works in a warehouse or for social services, when you have kids it's a different situation.

ashleyAMX
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Postby ashleyAMX » Sun Feb 05, 2012 7:43 pm

4Runner wrote:Kris76,

There is no reason why you should use your charge card to pay for all your expenses. IMHO, paying with debit card is equal to pay with a charge card, you can only use the money that you have, no more, but with the debit card you do not get any benefits, and with your charge card, you can get some points, that might not be good enough at the beginning, but after sometime, they will add up and you will be able to use them for some goods.



+1. Additionally, I've rarely come across a merchant that doesn't except American Express. Just depends on what part of the world you're in. Wyoming, maybe not. California, they probably take American Express most places. And if not, you can default to a back up credit card or to your debit. Credit (charge or revolving) is only leverage, if you use it correctly. You'll never use your debit and you'll be left with out a bruise or burden. For me, I only use my checking account to pay off my cards. Just use it like you would your debit card and pay it off. The amount you're paying off is just the aggregate of all the smaller debit transactions you would have made throughout the month anyway. Except you get rewards!!! :)



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