Debit vs. Credit Cards

[beowulf]

I remember well when our daughters started college. On the move-in date we were there helping them move in - there were booths of all kinds set up around the campus - many of them offering credit card sign-ups (very different than when I went to college). It was a great opportunity to explain credit cards, interest, and more - the conviences and the risks. We explained that any charges had to be paid off each month or they would be paying much more for whatever they bought - we made that point very clear - pay it off each month and if you can't or won't, then you can't afford to buy it. It was also an opportuity to discuss budgets, spending habits and more. They both worked through their college years - two jobs each - so had their own money. I am happy to say the followed that advice then and into adulthood.

 

[Jstpssng]

Here's another reason that I prefer credit cards. Last winter I noticed that a convenience store downstate had placed a "hold" of $175 on the card I use for my truck. It didn't make any sense; I had indeed bought gas there 2 weeks previously using that card, but they had already been paid. I called twice and sent an email about it, but never could talk to anybody about the hold. I checked my account every morning for over 2 weeks, waiting to see if I was going to have to protest the charge. Finally, it came off, and I never did find out what was going on.
It was a lot easier having that hold against my CC than it would have been against my checking account.

 

[BravoXray]

As for tattoos on their knuckles, well, that really doesn't mean anything anymore.

Except a failure to make good life decisions.

 

[two_bit_score]

Banks will charge higher fees directly to the customer and/or make credit less available to higher risk consumers. The law of unintended consequences always rears its head when government officials try to tinker with the economy. Most of them are simply too poorly versed in how things work and how the market will respond to their actions.

Yes you are right. But, the pols get to brag at election time that they "did something" to protect/cut costs/help, blah, blah...for consumers. Sickening.

 

[Streetcar]

I remember well when our daughters started college. On the move-in date we were there helping them move in - there were booths of all kinds set up around the campus - many of them offering credit card sign-ups (very different than when I went to college). It was a great opportunity to explain credit cards, interest, and more - the conviences and the risks. We explained that any charges had to be paid off each month or they would be paying much more for whatever they bought - we made that point very clear - pay it off each month and if you can't or won't, then you can't afford to buy it. It was also an opportuity to discuss budgets, spending habits and more. They both worked through their college years - two jobs each - so had their own money. I am happy to say the followed that advice then and into adulthood.

How old are you. credit card booths sound like my college in the eighties, except no warnings of the risks

 

[WVH1977]

I use both but mostly debit card. I use the credit card about 3 to 5 times a year. Things like Christmas and birthday presents and/or debit/credit both on something big that we might need for an unexpected repair. I try to not use the credit card that much. For me it is too much temptation to use too much. I also keep it under 2G's when I do use it and pay off as soon as possible. I understand why folks use it and pay it off monthly but I just don't fit in that category.

Off topic, I set up another checking account years ago and have a nice chunk every paycheck go into it. It is my emergency type fund. That is probably one of the best things I have done to force myself to save money for a rainy day. It is has saved my butt on tires/car repairs/DMV stuff/ property taxes, needed TOOLS , etc!!! It is automatic and I have gotten used to not missing that money. This helps keeps me off the credit card.

 

[LD1]

Except a failure to make good life decisions.

I disagree. That's just being judgmental.

Yes, I know alot of worthless individuals with finger tattoos. I also know a lot that are quite successful.

 

[Yander]

Well, I've been with the same credit union since I was about 12 years old. My spouse has been with them since she was 19. That's 50 years for me and 42 years for her. We've had a debit card (and a credit card) with them since debit cards were available. They have notified us of unauthorized purchases on our debit cards several times over the past decade, closed our card, and got us a new one the next day at least three times that I can remember. I recall one occasion where money was spent in Canada and Georgia on the same day at clothing stores, and they found that suspicious, so blocked the account and notified us.

When we travel, they notify us of gas purchases out of state. The last one was a few months ago, when I filled up my Suburban here in Indiana (30 gallons), 6 hours later in St. Louis (30more gallons) and 6 hours after that in Oklahoma (another 25 gallons). They saw $350+ in activity in 3 states within 12 hours, flagged it as suspicious, and shut off the card. We called them, verified the purchases, the opened the card, and off we go.

I pass my debit card at every drive through window, gas station, grocery store, bar, restaurant, retail outlet, you name it. I've had the same $50 in my wallet for about 6 months. I like to have some cash when we travel, and the debit card is also our ATM card, so I make a cash withdrawal before we head out of town.

Not once have we ever lost a penny on our debit card. If you have a reputable financial institution, those fears are unfounded.

As for tattoos on their knuckles, well, that really doesn't mean anything anymore.

Sounds like you have a good credit union. My CC company does all of the alerting, blocking, refunding etc. that you mentioned above. In fact they did it yesterday when I put in the wrong 3 digit CVV.

I have two debit cards I could use if necessary but choose to use my CC. I think there are scenarios where a debit card is probably better. Like someone starting out who is undisciplined and would over spend on a CC. Not saying you are, I'm sure you are not.

For me, debit is not happening for now. As I said, if I hear of enough situations where they honor someone's savings getting wiped out, maybe I'll consider it. It is all about risk for me, the less people that have my debit card number, the better I feel.

As for tattoos on knuckles, it doesn't indicate a person is dishonest, but it gives me pause even to hand my CC to them let alone my debit card. If you have tattoos on your knuckles you better be really good at something.

 

[Yander]

I disagree. That's just being judgmental.

Yes, I know alot of worthless individuals with finger tattoos. I also know a lot that are quite successful.

I don't judge someone with Tatoos on their knuckles until I hand my debit card to them through a drive through window. Then when I see it I think, what the H were you thinking. Just being a teenager.

I have the right to judge who I hand certain things to and plan to continue doing that.

 

[Gem99ultra]

I lean toward using my CC for everything online - except my monthly electric power bill. Georgia Power does NOT accept CC's but one can pay via debit card online.
Of course, they strongly promote auto-payment via direct access to my bank account for 'easy' monthly payments. Needless to say, I do not subscribe to that wish.