Credit card vs. Debit card

[rtimgray]

Question for all you card users (and I count myself among your number):

What is the benefit of using a Debit Card vs. a Credit card?

If I understand right, a debit card is/can be linked directly to your bank account, to withdraw the money "right now". A credit card draws on a line of credit from a creditor for a time period, at the end of which you are liable to pay off the balance or pay a portion of it with interest.

I've never had a debit card, but have had about a million credit cards. I like that I only have to make one payment, at the end of the month, to settle up all my purchases. I can see on the statement the itemized list of purchases. If I had a debit card, I would have to keep track of each receipt to balance it against my bank statement (either paper or online).

I know that my credit cards have benefits (% cash back, airline miles, etc). Do debit cards offer any benefits?

Thanks for the insight on this.

 

[riptides]

In my travels foreign and domestic, my debit card has never been rejected or not accepted.

With a debit card, if you cannot back it up with cash, in my case, the transaction does not go through.

I have a credit card with a 25k limit. It started off at 1k. The history of it would suggest that I outran my thrifty spending habit on more than one occasion.

 

[RoyJackson]

Biggest advantage to a debit card is it keeps you out of trouble. Credit cards can get you in some serious debt (been there, done that but had to sell the tee shirt) and the credit card companies do charge some outrageous late fees even if you pay by the due date (it's when they post the payment).
I have one credit card which isn't used too often.

Two down sides of debit cards, especially if you use it for online purchases: if the seller's website gets hacked, your account info is vulnerable and could get cleaned out (before you know there is a problem) and certain protections offered by credit card companies (if the item you ordered isn't as advertised, the credit card company won't pay the seller) may not be available with a debit card.

 

[Bigfoot62]

Like Roy said, the big plus for a debit card is, "if you don't have it, you can't spend it." That can help some folks stay out of trouble.

Personally, we (me and my wife) don't have debit cards, and don't want any. We use two credit cards, visa for my business and farm stuff, and a discover for everything else. BUT, we pay the entire balance off each month.

 

[creekbend]

We mostly use the debit card for purchases throughout the month. We only use the credit card for purchases that are unexpected, but we make sure we pay the credit card in full when the bill arrives in the mail. We have used the credit card in the past to rent a car or get a motel room;etc.

 

[rkeith]

Biggest advantage to a debit card is it keeps you out of trouble.

I agree!!!

 

[Kyle241]

Biggest advantage to a debit card is it keeps you out of trouble. Credit cards can get you in some serious debt (been there, done that but had to sell the tee shirt) and the credit card companies do charge some outrageous late fees even if you pay by the due date (it's when they post the payment).
I have one credit card which isn't used too often.

Two down sides of debit cards, especially if you use it for online purchases: if the seller's website gets hacked, your account info is vulnerable and could get cleaned out (before you know there is a problem) and certain protections offered by credit card companies (if the item you but isn't as advertised, the credit card company won't pay the seller) may not be available with a debit card.

Roy is spot on. Credit cards have gotten too many people in trouble. The top benefit of using a debit card is it's a better 'budget tool' for the majority of the population. Now the advantage of using a credit card is high IF one pays it off every month and you get something on the side such as points, money back, etc.

 

[jinman]

My debit card is also an ATM card. . . very handy. I live over 50 miles from my nearest bank branch and about the same distance to my bank's closest ATM. I can go to Walmart, use my debit card, and get cash back for no fee. When I travel, I see BoA branches and ATMs all over. That said, I'm very careful where I use the debit card. If I have any doubts or fears about a card purchase, I'll use the credit card for the protection it affords. All online purchases are paid with my credit card instead of my debit card. Even with the credit card, I won't give it to waiter/waitress at a restaurant. If I don't pay at the register where I can see my card at all times, I will pay cash. It's a bit of a pain to make sure I have the cash, but it's just what I do.

 

[NSBound]

I have both debit and credit cards, and pay off the credit card balance every month. I try to use it for everything, both for the "protection" they offer, plus many credit cards offer "bonus points" of some type that can be used toward flights or other purchases. I usually redeem mine for gift cards at a local electronics retailer where I buy my toys

 

[EddieWalker]

Biggest difference between the two is that you have a much greater degree of protection with a credit card purchase then you do with a debit card. If you buy online and you never receive your package, or you have a problem, the credit card can be very good at getting your money back or delaying payment.

As for personal responsiblity, both will get you into trouble.

Eddie