[kumar]

Which Is Better Debit Card Or Credit Card?

We increase our Debts like any thing when we have Credit Card because we spend /buy the goods with free hand / shopping habits, in this case will it not be a better to keep a debit card instead of a credit card? :confused:
What are your views on this subject?

[Capuchin]

I don't own a credit card. I always use a debit card because that means I can't spend the money unless I have it!

I also make sure that I keep the majority of my money in a savings account that I don't have access to with a card. This way I can keep a few hundred in my debit card account to spend, and the rest of my money is safe if I go crazy with the card one day :)

[kumar]

I don't own a credit card. I always use a debit card because that means I can't spend the money unless I have it!

I also make sure that i keep the majority of my money in a savings account that I don't have access to with a card. This way I can keep a few hundred in my debit card account to spend, and the rest of my money is safe if I go crazy with the card one day :)

Thanks for the response Capuchin & I do agree with lot of Ur points but, difficult to digest the words... “I don't own a credit card” :confused:

How one can carry on to live without any hazels in this materialistic world until & unless one does not have his own Credit Card? Here goes a Practical Example:-

Recently I paid the Admission Fees of a Foreign University for my son just 2 days before its last date, which would have never been possible if I have gone through normal postal or other procedures! :)

Any Suggestions!

[Capuchin]

I have never needed a credit card, my debit card works like any other visa in the VAST majority of cases.

For my university I have a direct debit set up from my account.

[mr.yet]

I only have a debit card, no credit cards they are nothing but trouble.

Using only a debit card forces one to only spend what they have in the account hence, one pays closer attention to their money.

[Capuchin]

And he's a debt expert! I must be doing something right! :)

[excon]

Hello:

I don't own a credit card either. They are big trouble...

excon

[labman]

I have used credit cards since about 1970 when my bank mailed me a Master Charge. Despite a few periods of unemployment in that time, the biggest jam I ever got into cost me $6 in interest to get out of. I prefer using other people's money and all but a handful of times I paid the bill in full when it came. If you have the discipline to live within your means, you shouldn't have problems.

The only advantage I see with a debit card is that a few places will take them that won't take credit cards. Aldi's is one. Shopping there rather than Krogers, is one the ways of living within your means. It would be more profitable for the banks and stores to force people like me into debit cards. I can always pay cash at Aldi's.

[ScottGem]

There is nothing wrong with using credit cards or even credit as long as it is managed wisely. I can safely say I would not be living as comfortably as I do without the use of credit. Even through some periods of unemployment I have managed to keep my credit rating high and not have problems.

But I do agree that credit cards can be very dangerous, especially to young people who don't know how to manage them.

[mr.yet]

ScottGem is right if managed well credit cards can be good. I personally use my bank for credit since the rates are a lot better than credit cards, and the debit card for other things.

[excon]

Hello again:

In terms of consumer credit, I agree with both of you (you too mr yet). Frankly, you're poster boys for how to USE credit cards.

The OP, however, asked what is better. I gathered that the questioner was asking from a personal perspective, and appears to be one of those few (? ) who AREN'T poster boy material.

Since debit cards are interchangeable with credit cards these days, in my view, a debit card is a better choice - essentially for one reason: you can't get into trouble with a debit card.

Yes, with a credit card, there's a 30 day float. But someone who is banking on that will shortly find themselves in trouble. Plus, credit cards provide miles, whereas debit cards don't.

However, there's NEVER a cost involved with applying for, or using a debit card, unlike credit cards with annual fees, application fees, and the possibility of late fees, and dings on your credit.

Nope. In my view, if miles don't matter, even for poster boys like yourselves, I think using a debit card would be a better choice.

excon

[labman]

With a credit card you build a credit history. Carefully meet your payment obligations and you will build a good credit history and be able to borrow money elsewhere. Mess up, you are in trouble.

[kumar]

And he's a debt expert! I must be doing something right! :)

Thanks if you are pointing to me
BTW what you or anyone else says about... which I overheard (eventhough I myself don't agree with the word women)

... Women should have debit cards instead of credit cards because they simply lost control when they are shopping, if you have a credit card, you do not really care how much you spend that day as you do not have to pay yet, but if you get a debit card it sets a budget for you to spend on that day. If you have few credit cards and when you loss control, you may have to pay off a huge bill next month, but the fact is you may not be able to repay it by one payment, you may need to borrow from someone,, or... etc..
This is a Vicious cycle and it will never end...

[ScottGem]

That's chauvinistic. My wife is less apt to use a credit card than I am.

[darntootin]

"What r ur views on this subject?"

An undisciplined person can easily put themselves in a worse financial position with a credit card via interest charge accumulation. Late fees and ensueing higher default interest rates after non timely payment can be very subversive to financial gains a person may be making in other aspects of their financial life in investments. Recent legislation was inacted to force creditors to design the minimum payments high enough to prevent interest compounding into never ending payment situation. In essence the minimum payments must be high enough to pay some of the principle as well as the interest on the balance. Payments satisfy interest portion of bill first when paying for things on credit.
With that said the credit growth involved in having credit cards has been very important in the eyes of potential creditors when you attempt financing of other perhaps more important purchases like vehicles and houses. The fact of having them and having paid them regularly on time shows worthiness. Is not a bad idea to get younger peoples feet wet in the credit world by going with one of the secure credit cards that are backed up by funds in a cash account. They quikly learn that indeed the card is not magic money and they learn to budget the money it represents.

Personally I use both type cards and but consider the cost of money when pulling the credit card out my wallet..

[alkalineangel]

Statistics show that you are more likely to spend more on things you don't necessarily need when using a credit card, because there is no "ouch factor" as you would feel if you laid down a $100 bill. I live without a credit card and save my money to buy things. There are so many wonderful accounts out there that will make you money (IRA, ROTH IRA, Mutual Funds) why live in debt? Why should a credit rating mean anything? It is only important to people who want to put you further in debt! You can buy every single thing in this world without a credit rating... house (manual underwriting) car, groceries, gas.. I would rather have net worth than debt... Debit card or cash for me thanks.

[alkalineangel]

Smart girl.. thanks.:p

[darntootin]

You can buy every single thing in this world without a credit rating... house (manual underwriting)

High enough down payment you don't need to pass credit check for houses at many institutions... what is it like 50% down?

[alkalineangel]

I'm not really sure about that. But probably. I know you avoid PMI by having more than 20%

[gazelleintense]

Debit is best. You won't spend money you don't have. You won't have late fees... and you can't get in debt with a debit card