3 ms·

Yes but my credit limit is a very large buffer to the amount of cash in my bank account.

• AnthonyMouse 2y ago
  But what does that matter? Suppose you have a $10,000 credit limit and $100 in your bank account, and then you have to dispute a $100 transaction while also needing to buy something else that costs $20. If the dispute is over your bank balance then you put the $20 on your credit card. That causes you to have a $20 credit card balance, but in the alternative you have a $100 credit card balance -- and may or may not win the dispute.
  • philwelch 2y ago
    We're arguing about credit card versus debit card. If you decide debit cards are better and, as a result, you don't have a credit card, you don't have that $10,000 credit limit. Also, available credit limits are much less valuable to me than actual money, so I will preferentially risk part of my credit limit before risking actual money. If the bank reduced my credit limit by $1000, I wouldn't mind nearly as much as if they reduced my checking account balance by $1000. I think most financially responsible people would feel the same way. Likewise if the bank increased my credit limit by $1000, I wouldn't be nearly as excited as I would be if someone gave me $1000 in actual money. If it's just a question of what you're going to use for one particular transaction, sure, you can use your debit card sometimes. I do. And part of the issue is that credit lines and actual money aren't perfectly fungible. For instance, I can't use my credit card to pay my credit card bill. I also can't use it to pay my mortgage.