3 ms·

You and I don't know the same people. I use a credit card for everything and pay it off at the end of the month. I know nobody who uses a debit card like that u

You and I don't know the same people. I use a credit card for everything and pay it off at the end of the month. I know nobody who uses a debit card like that unless their credit cards are maxed out.

throwawayboise 6y ago
Young people with no credit history can get debit cards if they open bank accounts. I'm not really sure it helps their credit score but it's convenient. The first real credit card a young person gets will have a very low limit, maybe only a few hundred dollars, so they are not all that useful at first other than to start establishing a credit history.
- matttb 6y ago
  Debit cards do not help credit score. If your score is too low or non-existent you often have to get a 'secured' credit card which means you have a limit (often it's still a low limit which I don't understand), and that limit is how much cash you let the company hold for you. It doesn't seem any different to me than having a bank account + debit card. When you're done using a 'secured' card you get your initial money back
tharkun__ 6y ago
Then 'it worked'. That's the whole point of credit cards. They're trying to dissociate the buying and the paying such that it's easily possible to 'overbuy' and slip into the credit card hell of perpetually trying to pay it off. The closer you are to 'living pay check to pay check' the easier it is to get you into this. And I suppose for some people it takes multiple larger purchases to get you into it. Popular culture, TV shows, Twitter nowadays etc. don't help and 'legitimatize' it (everyone's talking about it that way, so everyone must be doing it that way, so it's OK to do it that way). You might be good at "paying it off at the end of the month". A lot of people easily slip into credit card hell that way, because they _can't_ pay it off at the end of the month, because they didn't realize how much of their credit they should really be using. Credit card says you have $2000? Let's spend $2000. At the end of the month I only have $1500 left in my account? Oh crap! Personally I pay it off in sort of regular intervals, since it's all right there in my online banking. I've never waited for a "credit card bill", even when they still sent them to me in actual dead tree form.
- Ayesh 6y ago
  It's just being financially responsible. I use my credit card for the purchase buffer the other mentioned, and I've set it to the exact amount is taken from my bank account on the due date. I also track my expenses and categorize it, so I have a clear idea what's happening in the budget.
- elyobo 6y ago
  I pay it off in full when it's due, and have done almost without fail for years. In two cases I stuffed up (paid the previous month's bill instead on one, can't recall the other), in both cases I hit them up and they ended up refunding my interest anyway. The points for regular spend, the sign up bonuses, and the interest savings (the average balance on my card ends up saving me interest on my mortgage) put me well ahead. Credit cards are a solid because many (most?) people use them poorly, but it's certainly possible to use them wisely.
devin 6y ago
Same. Debit cards carry a lot of risk that I can offload by using a credit card. If someone gets ahold of your debit card info, there is very little recourse once the money has left your bank. Not so with credit cards. In addition, credit cards carry a whole bunch of rewards (earning points you can redeem for travel or gift cards, cash back, upgraded status with airlines and hotels, no foreign transaction fees, and the list goes on) you can’t get with debit cards.
- viraptor 6y ago
  > If someone gets ahold of your debit card info, there is very little recourse once the money has left your bank. This gets repeated, but it's not true everywhere. Some banks may not care or maybe it's harder in some countries. But for example in the UK I could easily revert a few £k the same day without issues. I'd love to read more about where the differences come from, but the blanket statement is not 100% correct.
  - allset_ 6y ago
    It's true in the US. If someone manages to steal your debit card data and your PIN, all the banks say "well your PIN was used, so it must have been you" and you're SOL.
    - karakot 6y ago
      It probably depends, my debit card got skimmed and they got $500 from it (max daily cash limit). The bank returned my money no question asked.
      - devin 6y ago
        Yes, the limit is often the difference. Multiply your $500 by 10 and I'm curious how a small to mid-size credit union treats it. If it's a cobranded card, it's one thing. If it's a "Friendly Bank of Central Virginia" debit card, you may have less luck.
  - devin 6y ago

You and I don't know the same people. I use a credit card for everything and pay it off at the end of the month. I know nobody who uses a debit card like that unless their credit cards are maxed out.

throwawayboise 6y ago

Young people with no credit history can get debit cards if they open bank accounts. I'm not really sure it helps their credit score but it's convenient. The first real credit card a young person gets will have a very low limit, maybe only a few hundred dollars, so they are not all that useful at first other than to start establishing a credit history.

matttb 6y ago
Debit cards do not help credit score. If your score is too low or non-existent you often have to get a 'secured' credit card which means you have a limit (often it's still a low limit which I don't understand), and that limit is how much cash you let the company hold for you. It doesn't seem any different to me than having a bank account + debit card. When you're done using a 'secured' card you get your initial money back

tharkun__ 6y ago

Then 'it worked'. That's the whole point of credit cards. They're trying to dissociate the buying and the paying such that it's easily possible to 'overbuy' and slip into the credit card hell of perpetually trying to pay it off. The closer you are to 'living pay check to pay check' the easier it is to get you into this. And I suppose for some people it takes multiple larger purchases to get you into it. Popular culture, TV shows, Twitter nowadays etc. don't help and 'legitimatize' it (everyone's talking about it that way, so everyone must be doing it that way, so it's OK to do it that way). You might be good at "paying it off at the end of the month". A lot of people easily slip into credit card hell that way, because they _can't_ pay it off at the end of the month, because they didn't realize how much of their credit they should really be using. Credit card says you have $2000? Let's spend $2000. At the end of the month I only have $1500 left in my account? Oh crap! Personally I pay it off in sort of regular intervals, since it's all right there in my online banking. I've never waited for a "credit card bill", even when they still sent them to me in actual dead tree form.

Ayesh 6y ago
It's just being financially responsible. I use my credit card for the purchase buffer the other mentioned, and I've set it to the exact amount is taken from my bank account on the due date. I also track my expenses and categorize it, so I have a clear idea what's happening in the budget.
elyobo 6y ago
I pay it off in full when it's due, and have done almost without fail for years. In two cases I stuffed up (paid the previous month's bill instead on one, can't recall the other), in both cases I hit them up and they ended up refunding my interest anyway. The points for regular spend, the sign up bonuses, and the interest savings (the average balance on my card ends up saving me interest on my mortgage) put me well ahead. Credit cards are a solid because many (most?) people use them poorly, but it's certainly possible to use them wisely.

devin 6y ago

Same. Debit cards carry a lot of risk that I can offload by using a credit card. If someone gets ahold of your debit card info, there is very little recourse once the money has left your bank. Not so with credit cards. In addition, credit cards carry a whole bunch of rewards (earning points you can redeem for travel or gift cards, cash back, upgraded status with airlines and hotels, no foreign transaction fees, and the list goes on) you can’t get with debit cards.

viraptor 6y ago
> If someone gets ahold of your debit card info, there is very little recourse once the money has left your bank. This gets repeated, but it's not true everywhere. Some banks may not care or maybe it's harder in some countries. But for example in the UK I could easily revert a few £k the same day without issues. I'd love to read more about where the differences come from, but the blanket statement is not 100% correct.
- allset_ 6y ago
  It's true in the US. If someone manages to steal your debit card data and your PIN, all the banks say "well your PIN was used, so it must have been you" and you're SOL.
  - karakot 6y ago
    It probably depends, my debit card got skimmed and they got $500 from it (max daily cash limit). The bank returned my money no question asked.
    - devin 6y ago
      Yes, the limit is often the difference. Multiply your $500 by 10 and I'm curious how a small to mid-size credit union treats it. If it's a cobranded card, it's one thing. If it's a "Friendly Bank of Central Virginia" debit card, you may have less luck.
- devin 6y ago