That's exactly what I have said. You are confused about what using a credit card can mean. You associate credit card use with irresponsible spending, which is why you cannot make a proper argument. Credit card use can lead to irresponsible spending, but they do not go hand in hand.
As I said before, it is easy to point out faults or virtues of a payment method, but it doesn't mean it's better. If you use cash you cannot overspend... interesting, but I do not overspend regardless. If I use cash I can be mugged and my cash is NOT coming back.
Either way, this is a thread about CC vs DC, so I don't see how cash got all tied into this thread. With DC you can overspend as well, and you can be charged an overdraft fee. That is why with both CC and DC, you should keep an eye on your balance on a daily basis.
Confused???? Hardly! I'm speaking on general terms for the entire American public as I've stated on both the use of cc's vs debit/cash users. I'm not just talking about you or only responsible users. The point is that there are huge differences between the two and I have found in my life that a cc is something my wife and I use very rarely, because we just don't really need it. Cash and debit cards take care of 95% of our needs. Borrowing money just plain stinks IMO, to many risks!
Fair enough, but I disagree with the blanket statement that DCs are better than CCs. CCs simply have more protections.
I certainly don't need CCs, I just want to use them for the protections they offer (so I buy with them and just pay them off immediately). The only case where I would really use credit to pay over time would be to finance a good used car ($1000 craigslist cars are unreliable), or when I buy a house (currently renting). (=
Tue Jun 07, 2011 1:27 pm
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Credit Card is a card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual's credit rating.
Debit Card is an electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. This removes the need for bank clients to go to the bank to remove cash from their account as they can now just go to an ATM or pay electronically at merchant locations. This type of card, as a form of payment, also removes the need for checks as the debit card immediately transfers money from the client's account to the business account.
Tue Jul 19, 2011 12:24 pm
eastmn Senior Member
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This thread has been both interesting and informative.
Last edited by eastmn on Thu Sep 29, 2011 1:27 pm; edited 6 times in total
Tue Jul 19, 2011 3:13 pm
teena.robert Preferred Member
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Credit cards are a risky part of banking. Banks have set this up very well in a way to profit both them and the customer. There is not a perfect thing in this world and that includes credit card handling. Most people are often terrified of using credit cards, but there is nothing in this world that does not require risk taking.
I think that it generally depends on personal preference, I prefer to use a debt card and always have done as then i never spend beyond my means however my friend uses there credit card day in day out and has ended up building up considerable amounts of debt, as there spending got out of control. They are now suffering with repayments and seeking debt advice from specialised advisors. Therefore i would advise to use a debit card as you always know where you stand..
Wed Jul 20, 2011 8:33 pm
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It depends upon how careful you are with your card and why you are using the card.
Mon Jul 25, 2011 1:22 pm
keshavmish Full Member
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When choosing a card there are many to choose from and each of them are different have different features that you need to be aware of. If you choose to get a debit card, know that it is a plastic card that is linked to an account and is used to pay for purchases. In many ways it is considered a cash form of payment as anything you buy is immediately withdrawn from your account in an instant. Whatever financial records that card is affiliated with, that will be the place from which the money is drawn immediately.
Now, if you choose a credit card, this is also a plastic card like the debit, however this is a bit different because it does not draw from a well of immediate funds but rather works in a debt like function as it relies on money coming in from a credit card company. It takes the money from that company and the card user than pays it back later on in the form of a statement or bill. There is an interest rate associated with it as well. This is helpful because the user may make larger withdrawals than what is immediately in the bank account but this can result in high amounts of debt that can accumulate if the person is not keeping careful track of their spending records.
Another card is the pre-paid credit card. This one offers the same benefits of a credit card processing Services, but there is no risk of going into debt since it is already pre deposited into the bank by the user and then that money is taken care of and accounted for in advance. The card user can then use it for any purchases but must remember to refill their account.
Wed Aug 17, 2011 1:08 pm
Daniel221 New Member
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Re: Credit or debit card?
quote:Originally posted by bulldogbetter Which is better?
what do you want ? It's up to you.
Thu Aug 18, 2011 10:31 pm
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Both are different things it depend upon you if you want to get a loan approval you must need to repair your credit history.
Thu Sep 29, 2011 6:22 am
globaldoc2001 Senior Member
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Here is the point. With credit cards, it serves as an identification as well, and you do not have to pay immediately since it is a credit. It means someone pays it for you first. After which, you will eventually have to pay up. The security for this is better since you will still have the time to hold back the money and fight for an investigation. For a debit card, the money is already there with them.
Credit cards will be a good tool for an individual if he is capable of paying on time. However, it is the meanest poison to somebody who takes advantage of its credit policy without having the ability to pay on time. The interest rate is going to bury him alive.