Credit card vs. Debit card

[George2615]

I use the Debit card mainly for gas or fuel purchases. Don't have to walk into the station to pay that way. Comes right out of checking acct. No interest to pay like on a C/C. You just have to remember to balance you checkbook. My check statement is online so I can check it daily to see my balance anytime.
I use Credit cards for online purchases and try to pay them off each month.

 

[MMagis]

Someone explain to me how a debit card can get someone in trouble like a credit card? As mentioned, it's nothing more than a check without the paper. If you don't have the money, it doesn't go through. I think most people have them backed up by a savings account.

 

[grsthegreat]

I use both...here's my reasoning

1. I use credit cards for all online purchases because then im protected in case of fraud. Also, American Express automatically doubles any warranty a long as i remain a member (great for electronics). This being said i ALWAYS pay off my balance every month...always. I also earn 1% back on all purchases and 4% back on business fuel, it adds up

2. I use debit cards for grocery shopping, food (fast food) purchases, etc. There no threat of going over my limit then, and i do it just for the convenience.


things to note. Debit cards = cash transaction. there is no getting the debit card company to reverse a charge if fraud is involved.

And for me the credit card is business linked so makes monthly reconciliations a breeze.

 

[EddieWalker]

Someone explain to me how a debit card can get someone in trouble like a credit card? As mentioned, it's nothing more than a check without the paper. If you don't have the money, it doesn't go through. I think most people have them backed up by a savings account.

Same way as you do with a credit card. You spend more then you have.

A good example would be buying $500 worth of materials at Home Depot when you only have $450 cash. They approve the sale, but your bank charges you $30 for spending more then you have. Now you need $80 to deposit $80 just to have a zero balance!!!

Eddie

 

[rtimgray]

Thanks for the comments, everybody. I think that my assumptions were more or less correct, and as long as what people use works for them, more power to them.

Thanks again.

 

[MarkV]

I am with the crowd that hasn't seen the advantage to a debit card and use a credit card for everything I can. I get better protection, rewards and get to use their money for awhile each month. I even bought a tractor with a credit card. Of course it only works if you pay it off each month. By the way we are sending my daughter and future SIL to Italy for their honeymoon with reward points this year.

We do keep one debit card for cash withdrawals out of the country. My wife works for an airline and travels out the the country each week where a debit card works better for that.

MarkV

 

[jinman]

Since this thread has pretty much run it's primary gamut, I have a bit of a hijack question. How many of you remember or ever had an ATM card that was not a credit card format? I remember having just an ATM-only card for many years. Then, one day, a debit card showed up in the mail. I wasn't really happy about that because I had to learn a new PIN. Also, many/most businesses couldn't do debit card transactions.

 

[MMagis]

Same way as you do with a credit card. You spend more then you have.

A good example would be buying $500 worth of materials at Home Depot when you only have $450 cash. They approve the sale, but your bank charges you $30 for spending more then you have. Now you need $80 to deposit $80 just to have a zero balance!!!

Eddie

I guess that was my point, that's not possible with mine.

 

[grsthegreat]

I purchased all my snow removal implements and forks with my capital one card, and paid it off when the bill came. But by doing that i got back 1% ($140) which ain't chicken feed.

I had the money saved up and was going to mail a bank draft....then i thought.... HAY, what am i thinking.

I used to like to play credit cards against each other to get lower rates, but since i pay total each month i dont do that anymore. (i dont need to transfer for 0% for 6 months..etc). But i once opened a Home Depot card cause they told me 10% of my first purchase. ANY 1st purchase. I bought $14,000 worth of electrical romex (enough for 3 of the very large houses i was currently wiring). They went nuts...tried to back-peddle on the deal. But they actually let it ride. They thought they would make their 9% on me, but i paid it off when the bill arrived...and a few months later i cancelled the card.

I didnt feel bad, its their game.

 

[kenmac]

I use debit card. If your mail is late getting the payment to them or someone at the cc company doesn't process the payment in time you could get hit with late fees