Whats the point in credit cards

[DougK62]

Originally posted by: bsmithy

Originally posted by: DougK62

Originally posted by: bsmithy

Originally posted by: DougK62
It's financially irresponsible to not have a CC these days.

They're easy to get, easy to use, and provide so many benefits.

of which none have been detailed here

Are you dense or something? This whole thread has been full of people giving great examples of why credit cards are superior to debit cards.

For me, the greatest reasons are:
1. Better fraud protection
2. Reward programs
3. Build credit history
4. Buy now pay later - keep your money a little longer so it can make you more money.

This is a seriously dumb topic. I take it you're a young person - you'll learn. There are ZERO good reasons for having a debit card over a credit card. Well, maybe there is ONE good reason - if you're financially irresponsible with no self control and know you'll spend beyond your capability to repay.

1. No
2. Neglegent in the UK, biggest I've seen is 1% (with high apr)
3. I have good credit history already.
4. you are arguing for credit but you say a major good point is earning interest?

good old "my way or the wrong way" attitude

1. Yes. Credit card companies bend over backwards to fix fraud problems because it's THEIR money that got stolen - not yours.
2. So 1% cash back means nothing? Last I checked, 1% > 0%.
3. CCs are the easiest way to build credit, and a higher credit score will only benefit you.
4. Try to grasp this concept. CCs allow you to put off paying for things to a later date. While I am putting off payment I have this money sitting here - it is somewhere making interest for me. If I use that money now to pay my bill I lose interest that it could've made for me. This is a basic concept of personal financial planning - getting your money to make the most money for you.

good old "I'm wrong but I'm stubborn and don't want to admit it" attitude

 

[crt1530]

Originally posted by: bsmithy

Originally posted by: DougK62

Originally posted by: bsmithy

Originally posted by: DougK62
It's financially irresponsible to not have a CC these days.

They're easy to get, easy to use, and provide so many benefits.

of which none have been detailed here

Are you dense or something? This whole thread has been full of people giving great examples of why credit cards are superior to debit cards.

For me, the greatest reasons are:
1. Better fraud protection
2. Reward programs
3. Build credit history
4. Buy now pay later - keep your money a little longer so it can make you more money.

This is a seriously dumb topic. I take it you're a young person - you'll learn. There are ZERO good reasons for having a debit card over a credit card. Well, maybe there is ONE good reason - if you're financially irresponsible with no self control and know you'll spend beyond your capability to repay.

1. No
2. Neglegent in the UK, biggest I've seen is 1% (with high apr)
3. I have good credit history already.
4. you are arguing for credit but you say a major good point is earning interest?

good old "my way or the wrong way" attitude

1. Yes. If you lose your wallet and somebody goes on a spending spree with your cards, there is a very big difference between credit cards and debit cards. If you have a debit card, the money will be withdrawn from your account as soon as the transaction takes place. They can clear out your bank account before you even report the card lost and cause any checks you've written to bounce. Even if the bank offers fraud protection, it may take a full business week to replace your funds into your account. In the mean time, you have to figure out how to cover your bills that are still due thanks to the checks you bounced. With a credit card, you never have the money out of your posession at any point in time. The bank is stuck with just about all of the hassle.
2. One percent is still one percent. You are paying more money for things than the person who uses a credit card.
3. I'm not sure how credit is scored in the UK, but credit cards are essential to building a good credit history in the US.
4. If you spend only what you can pay off every month and you pay your bill on time, you will never pay one cent of interest on a credit card. You will earn money from the cashback/rewards program that many credit cards have. Not to mention that in the US, many places will charge you a fee to use your debit card when you purchase something. Any place that requires you to enter your PIN to put through the transaction may also charge a fee.

The ONLY reason to prefer debit cards over credit cards is if you are irresponsible with credit.

 

[marquee]

Originally posted by: bsmithy

Originally posted by: DougK62

Originally posted by: bsmithy

Originally posted by: DougK62
It's financially irresponsible to not have a CC these days.

They're easy to get, easy to use, and provide so many benefits.

of which none have been detailed here

Are you dense or something? This whole thread has been full of people giving great examples of why credit cards are superior to debit cards.

For me, the greatest reasons are:
1. Better fraud protection
2. Reward programs
3. Build credit history
4. Buy now pay later - keep your money a little longer so it can make you more money.

This is a seriously dumb topic. I take it you're a young person - you'll learn. There are ZERO good reasons for having a debit card over a credit card. Well, maybe there is ONE good reason - if you're financially irresponsible with no self control and know you'll spend beyond your capability to repay.

1. No
2. Neglegent in the UK, biggest I've seen is 1% (with high apr)
3. I have good credit history already.
4. you are arguing for credit but you say a major good point is earning interest?

good old "my way or the wrong way" attitude

It's kinda like this. Pretend you're going to buy a car. You decide you want a certain model. Now someone tells you that you can throw in leather seats, a nice stereo system, and if you take these extra features, you'll be elgible for future promotional discounts in the future. And all these things are free. The catch? you have to make your car payments on time, or you'll get charged a penalty.

But you were planning on making your car payments on time anyways. So the penalty really wont apply to you. Would you pass up the leather seats and car stereo, just because you're fine with regular seats, and dont listen to music? Maybe someday you'll want them, why not take them if it's not costing you anything?

It's the same idea with credit vs debit. If you make your payments, credit card companies dont make any money off you. You get some benefits, you might not ever use them, but they're free, why not take them anyways?

When I get a credit card, I make sure there's no annual fee, I don't give a crap about how high the APR is, cuz i know I'm never going to pay it. The 1% interest I get back is pretty cool. It's not much, but over the course of a year, I earn about $50 in rewards. And the reward program lets me double that if i spend it at certain places... so I can get a $100 GC for sharper image or TGIF or FTD or something.

 

[Oakenfold]

You aren't building credit with a debit card.

Forgot to say that you get an interest free loan til your monthly payment is due, during that time period you are making interest by the money being in your bank account.
By all means, you are losing money that you could be earning in interest.

 

[DaWhim]

do debit/atm card offer you "dispute"? I saved my ass $130, because I disputed the charge.

 

[bsmithy]

Originally posted by: crt1530

1. Yes. If you lose your wallet and somebody goes on a spending spree with your cards, there is a very big difference between credit cards and debit cards. If you have a debit card, the money will be withdrawn from your account as soon as the transaction takes place. They can clear out your bank account before you even report the card lost and cause any checks you've written to bounce. Even if the bank offers fraud protection, it may take a full business week to replace your funds into your account. In the mean time, you have to figure out how to cover your bills that are still due thanks to the checks you bounced. With a credit card, you never have the money out of your posession at any point in time. The bank is stuck with just about all of the hassle.
2. One percent is still one percent. You are paying more money for things than the person who uses a credit card.
3. I'm not sure how credit is scored in the UK, but credit cards are essential to building a good credit history in the US.
4. If you spend only what you can pay off every month and you pay your bill on time, you will never pay one cent of interest on a credit card. You will earn money from the cashback/rewards program that many credit cards have. Not to mention that in the US, many places will charge you a fee to use your debit card when you purchase something. Any place that requires you to enter your PIN to put through the transaction may also charge a fee.

The ONLY reason to prefer debit cards over credit cards is if you are irresponsible with credit.

1. no, my bank will refund the money then and there in the bank when you report it, I have done this before and am confident they would do the same again.
2. the only ones i can find with 1% back have fees or charges (uk)
3. I have good credit already, i can get a loan/morgage no problem, higher credit will not benefit me.
4. there are no fees for debit cards at all, only fees apply are cashback charges (same as CC's)

marquee:

it's more like buying a car, someone says they can throw in a free cup if you make all your payments on-time
the value is so insignificant (see above) it isn't worth the hassle

 

[Jzero]

Originally posted by: DaWhim
do debit/atm card offer you "dispute"? I saved my ass $130, because I disputed the charge.

Most do but you are out that money while the dispute is settled where with a credit card, you simply have that working against your credit line. You aren't missing any actual cash.

 

[DougK62]

Originally posted by: bsmithy

Originally posted by: crt1530

1. Yes. If you lose your wallet and somebody goes on a spending spree with your cards, there is a very big difference between credit cards and debit cards. If you have a debit card, the money will be withdrawn from your account as soon as the transaction takes place. They can clear out your bank account before you even report the card lost and cause any checks you've written to bounce. Even if the bank offers fraud protection, it may take a full business week to replace your funds into your account. In the mean time, you have to figure out how to cover your bills that are still due thanks to the checks you bounced. With a credit card, you never have the money out of your posession at any point in time. The bank is stuck with just about all of the hassle.
2. One percent is still one percent. You are paying more money for things than the person who uses a credit card.
3. I'm not sure how credit is scored in the UK, but credit cards are essential to building a good credit history in the US.
4. If you spend only what you can pay off every month and you pay your bill on time, you will never pay one cent of interest on a credit card. You will earn money from the cashback/rewards program that many credit cards have. Not to mention that in the US, many places will charge you a fee to use your debit card when you purchase something. Any place that requires you to enter your PIN to put through the transaction may also charge a fee.

The ONLY reason to prefer debit cards over credit cards is if you are irresponsible with credit.

1. no, my bank will refund the money then and there in the bank when you report it, I have done this before and am confident they would do the same again.
2. the only ones i can find with 1% back have fees or charges (uk)
3. I have good credit already, i can get a loan/morgage no problem, higher credit will not benefit me.
4. there are no fees for debit cards at all, only fees apply are cashback charges (same as CC's)

marquee:

it's more like buying a car, someone says they can throw in a free cup if you make all your payments on-time
the value is so insignificant (see above) it isn't worth the hassle

Fella - give it up. It's blatantly obvious to everyone that CCs are far superior to debit cards, and you'll realize it too when you get some age under your belt. You're just digging yourself a nice little hole there.

Let's switch the tables. How about you name ONE advantage of a debit card over a credit card.

 

[marquee]

a bunch of UK cards with no annual fee and cash back or other rewards

http://www.creditcardcatalog.com/noannualfeecreditcards/

 

[dxkj]

Originally posted by: bsmithy

Originally posted by: DougK62
It's financially irresponsible to not have a CC these days.

They're easy to get, easy to use, and provide so many benefits.

of which none have been detailed here

Actually I listed a bunch, and so did others, but you just claimed your debit card got the same benefits. (I havnt ever had a debit card that did that).

 

[Saulbadguy]

This guy is like the moronic terminator. "He has no logic..he can't be reasoned with..he won't stop until we are all slightly less intelligent!"

 

[FeathersMcGraw]

Originally posted by: Saulbadguy
This guy is like the moronic terminator. "He has no logic..he can't be reasoned with..he won't stop until we are all slightly less intelligent!"

Or you're being trolled.

 

[TallBill]

I hate the damn credit industry.. i cant get credit.. period.. nobody wants to give this guy a card once i made over 20k a year, was a college student, AND paid zero rent. still no credit.. never.. fuggers..

 

[dxkj]

What is the OP's problem?


I live in the USA. I am speaking from my experience in the USA. The majority of the posters on here are from the USA. If you keep pulling the UK card on us, we can't really do anything to convince you. We can only speak from what we know for sure.

Do you want us to admit that in the UK Debit Cards are king because the banks rock and there is no real need of CC?



Hypothetical: You spend 1k a month on your CC to pay bills, etc.

Benifit A: 1% cashback
1,000 * 1.01 = $10 a month cash back

Benefit B: You can put off paying for a month
$1,000 * 1.0017 = $1.70

Benefit C: You buy gas $200
$200 * 1.05 = $10

Total Benefits: $21.70 a month


$260 a year in a 5% longterm cd that you can add to.

50 years later you are ahead $60k


I guess that doesnt matter if you aren't willing to make the time and effort to look at the big picture.

 

[crt1530]

Originally posted by: TallBill
I hate the damn credit industry.. i cant get credit.. period.. nobody wants to give this guy a card once i made over 20k a year, was a college student, AND paid zero rent. still no credit.. never.. fuggers..

Go to your bank and ask for a secured credit card.

 

[Tiqua]

[/quote]

1. Yes. If you lose your wallet and somebody goes on a spending spree with your cards, there is a very big difference between credit cards and debit cards. If you have a debit card, the money will be withdrawn from your account as soon as the transaction takes place. They can clear out your bank account before you even report the card lost and cause any checks you've written to bounce. Even if the bank offers fraud protection, it may take a full business week to replace your funds into your account. In the mean time, you have to figure out how to cover your bills that are still due thanks to the checks you bounced. With a credit card, you never have the money out of your posession at any point in time. The bank is stuck with just about all of the hassle.
2. One percent is still one percent. You are paying more money for things than the person who uses a credit card.
3. I'm not sure how credit is scored in the UK, but credit cards are essential to building a good credit history in the US.
4. If you spend only what you can pay off every month and you pay your bill on time, you will never pay one cent of interest on a credit card. You will earn money from the cashback/rewards program that many credit cards have. Not to mention that in the US, many places will charge you a fee to use your debit card when you purchase something. Any place that requires you to enter your PIN to put through the transaction may also charge a fee.

The ONLY reason to prefer debit cards over credit cards is if you are irresponsible with credit.[/quote]


1) My bank is awesome on this point and is very customer friendly.
2) I get the 1% cash back when I use the debit/credit card as a credit card; and have interest on both checking and savings accts. Bank pays any atm fees also.
3) Credit history - plan on going through my bank for future home loan since they offer really competitive rates (already have a car loan with them, but will buy all future cars outright).
4) I don't have to worry about a bill later on; it's been taken care of.

As for cashback/rewards program, my bank returns a % of their profits to their customers every year depending on their accounts. They will also delay payments (move payments to the end) when there is just cause (ex. husband was w/o a job for a bit). So as a whole, there really is no need for me to ever use a credit card. My husband and I have several we just never use them.

 

[azazyel]

Originally posted by: Tiqua

1. Yes. If you lose your wallet and somebody goes on a spending spree with your cards, there is a very big difference between credit cards and debit cards. If you have a debit card, the money will be withdrawn from your account as soon as the transaction takes place. They can clear out your bank account before you even report the card lost and cause any checks you've written to bounce. Even if the bank offers fraud protection, it may take a full business week to replace your funds into your account. In the mean time, you have to figure out how to cover your bills that are still due thanks to the checks you bounced. With a credit card, you never have the money out of your posession at any point in time. The bank is stuck with just about all of the hassle.
2. One percent is still one percent. You are paying more money for things than the person who uses a credit card.
3. I'm not sure how credit is scored in the UK, but credit cards are essential to building a good credit history in the US.
4. If you spend only what you can pay off every month and you pay your bill on time, you will never pay one cent of interest on a credit card. You will earn money from the cashback/rewards program that many credit cards have. Not to mention that in the US, many places will charge you a fee to use your debit card when you purchase something. Any place that requires you to enter your PIN to put through the transaction may also charge a fee.

The ONLY reason to prefer debit cards over credit cards is if you are irresponsible with credit.[/quote]


1) My bank is awesome on this point and is very customer friendly.
2) I get the 1% cash back when I use the debit/credit card as a credit card; and have interest on both checking and savings accts. Bank pays any atm fees also.
3) Credit history - plan on going through my bank for future home loan since they offer really competitive rates (already have a car loan with them, but will buy all future cars outright).
4) I don't have to worry about a bill later on; it's been taken care of.

As for cashback/rewards program, my bank returns a % of their profits to their customers every year depending on their accounts. They will also delay payments (move payments to the end) when there is just cause (ex. husband was w/o a job for a bit). So as a whole, there really is no need for me to ever use a credit card. My husband and I have several we just never use them.[/quote]


What bank is this?!?

 

[Tiqua]

I'm not really sure I should post the name of the bank on a public forum. It limits it's membership to current/former military officers and high enlisted. I know they've been rated one of the best companies to work for. The more I learn about this bank the more I'm impressed and thankful that they are my bank now.

 

[dxkj]

Originally posted by: Tiqua
I'm not really sure I should post the name of the bank on a public forum. It limits it's membership to current/former military officers and high enlisted. I know they've been rated one of the best companies to work for. The more I learn about this bank the more I'm impressed and thankful that they are my bank now.

In other words we should ignore your original post, because only a small percentage of the population can actually receive membership to that bank.

 

[rufruf44]

35K of 0% BT till next year, sitting and gaining 2% interest for over a year ($700 worth). Also 5% cashback, totaling close to $300, not to mention the grace period and better protection against credit theft. Thats $1K for doing almost nothing.

Think you can do that with your debit card?

 

[Tiqua]

Yeah. I just shoulda kept my mouth shut. But got a bit tired of people making generalizations that anyone that uses a debit/credit card wasn't managing their money wisely, needed to grow up or have their head buried in the sand.

 

[crt1530]

Originally posted by: Tiqua
I'm not really sure I should post the name of the bank on a public forum. It limits it's membership to current/former military officers and high enlisted. I know they've been rated one of the best companies to work for. The more I learn about this bank the more I'm impressed and thankful that they are my bank now.

That's not a bank. That's a credit union. There's a big difference. Credit unions have fields of membership that limit the number of people who can join and are owned by the account holders. Credit unions have special tax breaks because they are non-profit organizations. Banks are for profit organizations that are owned privately or by stock holders.

 

[Tiqua]

I've never seen them refer to themselves as a Credit Union. On their website they list themselves as bank, investments, insurance, etc. So maybe they are maybe they aren't.

Point is that just because someone chooses to use a debit card instead of credit cards doesn't make them financially inept or lacking in experience.

 

[rufruf44]

Originally posted by: Tiqua
I've never seen them refer to themselves as a Credit Union. On their website they list themselves as bank, investments, insurance, etc. So maybe they are maybe they aren't.

Point is that just because someone chooses to use a debit card instead of credit cards doesn't make them financially inept or lacking in experience.

Its a parent company which in turn has several financial and non-financial companies under it offering various services. Its clearly a good company, but in term of straight rates, I don't think they're the best right now.

 

[dullard]

Bsmithy, a credit card has every benefit of a debit card, and then some. So there is absolutely no reason to use a debit card if you can use a credit card responsibly. Most people have covered the basics already.
1) CC have better money protections than debit cards. You found a bank that currently has protections similar to a CC. Chances are the bank will change its policies as all banks do. You might not have this protection in the future.
2) CCs have better benefits than debit cards do. Cash back is one thing (I get 2% back on my Discover Card if I'm willing to accept gift certificates instead of cash). Credit cards often give you insurance policies or free extended warranties. Many CCs give you a 3 year warranty on everything you buy - makes a great deal when stores might charge $100 to upgrade to a 3 year warranty. I could go on and on about various beneifts that a CC has and a debit card most likely doesn't have.
3) Building credit is always a plus. There is no such thing as "good enough". Yes you might be able to buy the things you want, but using a CC will probably decrease the price of your loans, and even things like car insurance will be cheaper if you start using a CC.
4) CCs have over history charged the store LESS than debit cards do. A couple years back Walmart sued to be given the right to stop using Visa debit cards but still use Visa credit cards since the debit card charge for the store was so much higher. Saving money for the stores you shop at will allow them to lower prices (slightly) and thus you save money here.
5) If I have $100 in the bank and a $30,000 check coming to me in the mail, I can still buy $30,000 worth of goods today on a CC. Try that with a debit card. You'll just be sitting around waiting to get paid, waiting 1 week for that check to clear, and then you can enjoy the goods that I've enjoyed for the last 2 weeks.
6) With a CC I can make the payment how I want, when I want, and from what account I want. Not so with a debit card. If your cash is in account (A) and your debit card is linked to account (B), how long does it take you to switch the money around so you can spend your money? Isn't that a hassle - especially if they are in two different banks? Plus the interest I gain by keeping my cash in a bank longer is enormous.
7) Need we go on?

The real question is this: can you give us one reason to use a debit card instead of a CC?