Thread: Switching from Debit to Credit?

Credit definitely gives you enough rope to hang yourself with. But I'm really serious about my finances and thus far its working well. it will automatically deduct from my savings on the due date. I have daily limit notifications texted to me that way I know where my balance stands.

It would probably be better if I had cashback, but right now I just receive member rewards points. The downside I've seen so far is that it tempts me to spend unnecessarily. But, then I realize that's counterintuitive and I should earn points from what I have to spend. Not to spend to earn points.

Originally Posted by bubblebusteconomy

It's the other way around sweetheart. You need to be switching from credit to debit. Credit cards will lead you down a miserable road my friend.

Credit can be abused. however, using debit cards exclusively can make life hard. I know since it's what I did. I switched to a debit card for convenience. No monthly bills no worry about bumping over a credit limit. Just daily limits (10k) which was good enough for most things.. That was fine and dandy til I started having increasingly difficult times renting cars and hotel rooms. And then there was increasing car insurance rates. Since I didn't need or use credit and hadn't in a decade, no need to check credit reports - right? So I got tired of this the last time I flew to the East Coast and started researching credit. Found out about secured cards, and the details of credit reporting. Pulled my CR and had some baddies. Most were from utilities I hadn't turned off when I moved 6 years ago..

On the positive side, I didn't have a FICO score, had no active lines, had only one line closed within the last 10 years, and had some CAs. Ta da! I didn't have to worry about ID theft!


OK, I fixed that with a couple of secured cards (now unsecured).. I use credit but never carry a balance. The only downside: I do track my CRA info as ID theft could cost me a lot.

What if I want to switch from debit to credit but do not have a enough spending power? The card i have comes with a $700 limit and I was denied for a second card. I spend slightly more than that each month and my credit card that i have wouldn't work unless I was making payments middle of the month. Can I do that?

In my opinion, I think theres nothing with paying in the twice a month. At least it wont force you to over leverage yourself. Do it until you get your credit up. Also, watch for your bill close date because you don't want the cycle to report when your nearly maxed out.

Originally Posted by VApennypincher

What if I want to switch from debit to credit but do not have a enough spending power? The card i have comes with a $700 limit and I was denied for a second card. I spend slightly more than that each month and my credit card that i have wouldn't work unless I was making payments middle of the month. Can I do that?

You can pay more than once a month if you want. I have done this on occasion if I know I have set money aside for a certain expense. Example, I had the cash to buy a laptop but, I wanted to use my AMEX Gold to buy it to get the extended warranty. I just charged it and made a payment to AMEX for the amount of the charge. Most card companies like it when you pay early. After some time, you can always request a credit increase and that should help with your problems.

I have never heard of paying in advance but it seems like a good work around to my problem. Thanks I will try that.