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Credit cards vs debit cards has nothing to do with security. Both debit and credit cards have chips, both have instant and contactless transactions, both can b

by dudul 6y ago

Credit cards vs debit cards has nothing to do with security. Both debit and credit cards have chips, both have instant and contactless transactions, both can be setup up for 2FA with your bank when you purchase online (not all banks may offer this feature, but a lot do). The main difference is that credit cards allow you to carry a balance. Why use a credit card? Because most banks offer cash back deals when you do. I get a 3% discount on all my transactions when I use my CC, some get points to travel for free. Credit cards help you build a good credit score to get better interest rates on loans and mortgages.

Denvercoder9 6y ago
> Because most banks offer cash back deals when you do. I get a 3% discount on all my transactions when I use my CC, some get points to travel for free. That's an American thing, it's non-existant in Europe (at least in The Netherlands). Also, in the end it's not a discount, it's just your own money that you get back in an inconvenient way. It's paid from the creditcard fees that retailers pay, which pass it on to you (either directly as a fee, or indirectly as higher prices). The whole idea of e.g. paying less for gas when you pay in cash is insane in most of Europe. > Credit cards help you build a good credit score to get better interest rates on loans and mortgages. Credit scores are another American thing that seem insane to most Europeans.
- dudul 6y ago
  Yes, and the article is about American CC. Why are credits scores insane? How do lenders evaluate if it's risky or not to issue a loan to an individual? How do you reward individuals who manage their finance correctly?
  - kazen44 6y ago
    Lending seems to be far less of a thing in most european countries. Not taking into account bussiness loands, the only loan most people take on in their lives is a mortage. (Which has a lot of requirements). Also, a "credit score" kind of system does exist in most countries, but it is usually an administrative record kept by a goverment agency which blacklists you from taking out more loans if you cannot pay them. It seems the system is mostly based around a negative feedback loop. (Punishing people who haven't payed) instead of a positive one.

by dudul 6y ago

Denvercoder9 6y ago

> Because most banks offer cash back deals when you do. I get a 3% discount on all my transactions when I use my CC, some get points to travel for free. That's an American thing, it's non-existant in Europe (at least in The Netherlands). Also, in the end it's not a discount, it's just your own money that you get back in an inconvenient way. It's paid from the creditcard fees that retailers pay, which pass it on to you (either directly as a fee, or indirectly as higher prices). The whole idea of e.g. paying less for gas when you pay in cash is insane in most of Europe. > Credit cards help you build a good credit score to get better interest rates on loans and mortgages. Credit scores are another American thing that seem insane to most Europeans.

dudul 6y ago
Yes, and the article is about American CC. Why are credits scores insane? How do lenders evaluate if it's risky or not to issue a loan to an individual? How do you reward individuals who manage their finance correctly?
- kazen44 6y ago
  Lending seems to be far less of a thing in most european countries. Not taking into account bussiness loands, the only loan most people take on in their lives is a mortage. (Which has a lot of requirements). Also, a "credit score" kind of system does exist in most countries, but it is usually an administrative record kept by a goverment agency which blacklists you from taking out more loans if you cannot pay them. It seems the system is mostly based around a negative feedback loop. (Punishing people who haven't payed) instead of a positive one.