Credit card vs. Debit card

[thatguy]

I agree that credit cards have gotten ppl in trouble - BUT if you know your buying limits (as most of you say you do) then credit vs debit won't be an issue and IMHO credit offers more benefits.. We charge everything we can on credit cards (between two cards it average $4k a month) and then automatically deducted from our checking acct on the due date.

A credit card offers a layer of protection for you.. If it gets compromised and charges are made you arent liable for those charges. you also have at least 25 days to review all charges before you have to pay.

If your debit card is compromised your account could be cleaned out enough that legitimate transactions are declines as NSF - your bank probably would reimburse you for the bad charges but you are out that money until it is corrected.

Credit cards also offer extended warranties at times on purchases and also some also carry some insurance coverage for rental cars, travels, etc.

Also credit cards give you 'rewards' - We accrue airline miles and Discover Card points.. So far Discover card has purchased me a 450 Bushmaster upper for my ar-15, a 40" sony tv, and every year my father-in-law gets about $300 worth of Lobster Gram gift certificates.. Everyone one of those hasnt cost me a dime..

Brian

 

[spudbud]

If you use a debit card for purchases you should always run it as "credit" and provide a signature instead of your Pin number. Running as credit gives you more protection than entering your pin number. Still must have the money in your account though to cover the charge...

 

[RoyJackson]

If you use a debit card for purchases you should always run it as "credit" and provide a signature instead of your Pin number. Running as credit gives you more protection than entering your pin number. Still must have the money in your account though to cover the charge...

This is what I do, BTW...

 

[dmccarty]

We have an ATM/Debit card. It is ONLY used to get cash from the ATM. If your ATM card number is stolen you are SOL. Your cash can be taken and there is not much you can do about it.

We have had problems with retailers but since we used a credit card we had some protection. If we had paid cash, I am not sure we would have gotten our money back. We have had credit cards compromised at bricks and mortar and online stores. Not that big of a deal. We get a new card and move on. With a debit card it would/could have been completely different.

Since we make money when using the credit cards, the CC provides added benefits and they are safer, there is no reason to use a debit card at a store.

Later,
Dan

 

[teg]

We use both to reap the rewards... Credit card - 5% discount on gas, 2% on resturants and 1% on everything else. We use the Debit card to get a much higher yield on the rest of our money.

"...We will offer a stable, above-market yield on our Go Green Checking account with one simple, attainable requirement of at least 12 posted debit card transaction each month..." and "...is 6 times higher than the national average for dividend checking accounts..." which ain't much

We use the Debit card for purchases less than $10 which is normally lunch. We always pay off the credit card and never have a problem with losing "control" of it.

Edit: I forgot... I *DON'T* get ATM cash since I don't remember the password!!!

 

[Bird]

I've had a debit card from my credit union for many years. It's never been used for anything other than an ATM card, and very seldom for that. It was invaluable for getting cash from ATMs when we were full time RVers. But now, if I need cash, I just get it when I make a purchase at Walmart, Sam's Club, Kroger's, etc. with my Discover card and it asks if I want cash back. That avoids the ATM fees, and since I pay the credit card bills in full each time, no interest, and even get a small cash back reward from the credit card companies.

 

[LD1]

Pretty much what others have said. But I'll sum it up in my words.

A debit card is like writing a check, only without the check. It comes straight out of the checking account. You dont get a bill in the mail.

Credit cards are credit. You buy something and have to pay for it later. That is the main reason they offer more protection. Because you havent paid for the item until you pay your bill, unlike a debit card.

As mentinoed, debit cards can be ran as either credit (signature) or debit (pin). Chech with your bank. Because most charge an additional fee for one of the services. In my case, if I run it as "debit", it costs like 25 cents per transaction. But by law, they have to offer one of the services for free. Most banks dont charge if it is run as credit. But you may want to check with them.

And there are perks associated with debit cards too. They are all different so you just have to shop around. They are not as common as credit cards, and usually not "points" or "miles", but usually a %cash back on purchases made with the debit card.

 

[riptides]

Hmm,

My debit/credit card (one in the same) goes either way, depending on how I choose to use it.

I take it others don't know or have that option?

That said, in ATM mode, it gets stupid real quick. Or smart, depending on what situation your in.
It has limits set on cash withdrawls, and number of withdrawls per day.

I guess others are not offered that service, either?

 

[dmccarty]

Hmm,

My debit/credit card (one in the same) goes either way, depending on how I choose to use it.

I take it others don't know or have that option?

That said, in ATM mode, it gets stupid real quick. Or smart, depending on what situation your in.
It has limits set on cash withdrawls, and number of withdrawls per day.

I guess others are not offered that service, either?

My ATM card is old. Very old. Ok it has been replaced over the years but it is still the same numbers. The CU MIGHT be able to link the debit card with a CC but I have never asked. I certainly do NOT want to have them linked. They might do this on new accounts.

There are limits on the amount of cash that can be taken out per day but it would not take many days to drain the account. Unless you checked the account every day the money could be gone before you know it.

Later,
Dan

 

[LazySusanFarms]

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

^^^^^ This ^^^^^^