Debit Card vs Credit Card

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gretchenhill
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Debit Card vs Credit Card

Postby gretchenhill » Wed Nov 26, 2014 11:05 pm

Can you provide scenarios or examples on when it would be better to pay with a debit card over a credit card?


flan
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Postby flan » Wed Nov 26, 2014 11:17 pm

gretchenhill wrote:Can you provide scenarios or examples on when it would be better to pay with a debit card over a credit card?


You're someone who can't stop spending until your card is declined....

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Vattené
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Postby Vattené » Wed Nov 26, 2014 11:23 pm

I think a debit card is wise for people that can't handle credit cards. There are some people that simply don't have the financial discipline to use a credit card only for purchases they can afford to PIF every single month. Using a debit card forces you to live within your means.

One of my checking accounts earns 1.99% APR when you use your debit card 12 times per billing cycle, so I also make sure to use my debit card enough to meet that requirement (usually I try to use it only 12 times for small purchases). That is probably pretty rare, though. Generally (for people that have any business using credit cards in the first place), I think credit cards are a wiser payment method.

EDITED TO ADD: Flan beat me to the punch, but I guess it bears repeating. I'll also add that maybe one would like to have a debit card from an issuer in which one doesn't have a credit card. I use Discover and Amex for just about everything; I like having a Visa debit card as a backup because it isn't worth it to me to get a credit card JUST in case I need to pay for something and neither Discover or Amex is accepted.
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Postby Nixon » Thu Nov 27, 2014 12:09 am

Vattené wrote:I think a debit card is wise for people that can't handle credit cards. There are some people that simply don't have the financial discipline to use a credit card only for purchases they can afford to PIF every single month. Using a debit card forces you to live within your means.

One of my checking accounts earns 1.99% APR when you use your debit card 12 times per billing cycle, so I also make sure to use my debit card enough to meet that requirement (usually I try to use it only 12 times for small purchases). That is probably pretty rare, though. Generally (for people that have any business using credit cards in the first place), I think credit cards are a wiser payment method.

EDITED TO ADD: Flan beat me to the punch, but I guess it bears repeating. I'll also add that maybe one would like to have a debit card from an issuer in which one doesn't have a credit card. I use Discover and Amex for just about everything; I like having a Visa debit card as a backup because it isn't worth it to me to get a credit card JUST in case I need to pay for something and neither Discover or Amex is accepted.


What checking account?
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Vattené
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Postby Vattené » Thu Nov 27, 2014 8:32 pm

It is a local bank account I got in college. I even kept it after I moved because you just can't beat 1.99% on a checking account.
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AU on Barclay Sallie Mae - $10,000 (8/15)
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mdl28
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Postby mdl28 » Sat Nov 29, 2014 7:31 pm

My checking account earns 3.69 % interest.
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Brad Bishop
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Postby Brad Bishop » Sun Nov 30, 2014 6:50 am

I'd say:

It's better to use a debit card at an ATM than a credit card (cash advance).

Other than that, I think you're better off paying in cash or using a credit card when you shop simply because there's a buffer there when paying with a credit card if someone steals the number. With a debit card you're out the cash until you win the argument with the bank to put it back. With a credit card you simply dispute it and your money in your checking account is never touched.

Robrus1
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Postby Robrus1 » Sun Nov 30, 2014 8:29 am

Brad Bishop wrote:I'd say:

It's better to use a debit card at an ATM than a credit card (cash advance).

Other than that, I think you're better off paying in cash or using a credit card when you shop simply because there's a buffer there when paying with a credit card if someone steals the number. With a debit card you're out the cash until you win the argument with the bank to put it back. With a credit card you simply dispute it and your money in your checking account is never touched.


x2. That pretty much sums it up. I have had fraudulent charges to the tune of $1600.00 charged to my CSP. Chase sent me a text to reply with "1" if I made the charges and "2" if I didn't. I replied "2" and was immediately called. Chase confirmed that my AU and I still had our physical cards and were in Texas, not in California where the fraudulent charges originated. They had new cards on my doorstep in 24 hours and I never heard another word about it. Not near that easy with debit.
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Postby rockyrock » Sun Nov 30, 2014 9:11 am

I've started using my debit card for everyday swipe purchases. Online and major purchases still CC. I am trying to switch our household over to cash/debit. My wife has a problem staying in a budget otherwise. She views available credit as money to be spent.

Ideally using a credit card and then PIF is proly the safest option out there. I can't see a downside to that approach as long as you stay inside your budget--assuming you have one.
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Postby whit » Sun Nov 30, 2014 5:30 pm

Provident credit union provides an apr on checking that's pretty good, used to be about 3% but now it's 1.something

There's a cap though, of 20k.

I thought about it, but with the conditions asked, and having to keep track of it, not worth it to me, esp considering that that rate barely meets inflation anyways on average.

I don't use debit card to pay for anything, unless I forget my cc, and there's a line..and I find my debit card but not cc..so far hasn't happened too often.

My checking account history basically reads, deposit, cc payments, cc payments, cc payments, deposit

I keep my cc on alert so if it goes over xx than I get a text and email alerting that I've gotten over the thresohold set..it keeps me on the line..plus I have my dd split three ways so the bills are paid out of my main working account..I check both if not one almost on a daily, if not every other day, basis.

I prefer to buy stuff online, get cash back that way, through ebates or through shop discover, mr rebates, etc..and than get cashback on my credit card on top of that..

But I realize its only worth it if I buy what I really need, and not throw money to make money, that's what investments are for

Thinking in that term, really helps me not spend every penny I have.. Well that, and the two other accounts, I check on a less frequent basis, I don't really touch one of them and the other I don't touch at all, but still check on it to make sure it's okay, and it's hard to spend once you see your account have a certain $$, you don't want to dip into it

There's really no reason to use debit card unless you can't see yourself in control. Which is fine, we all have our addictions, but people seem to forget the little things..like cold hard cash attached behind that debit card..and unfortunately more people are without a cushion than with, so when they use their debit card to place down at a hotel because they don't have a cc or use a cc..and than check out only to realize (since they've been spending like crazy on vaca) that what little they have left, a good chunk is on "hold" thanks to the hotel..making sure they have something to collect in case the room is left a mess.. Standard but sucks if that leaves you with 0 and you're in a foreign place



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