Is Using A Debit Card vs. A Credit Card Really That Bad?
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Is Using A Debit Card vs. A Credit Card Really That Bad? - 2/14/2010 7:12:23 PM
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A-Mighty-Oak
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I was browsing Dave Ramsey's book at the store last week and noticed a questionnaire about using debit cards vs. credit cards. It seemed to imply that the risks to using debit over credit for protections was a big lie. I am just wondering if this is true or not.
Also, don't some hotels, airlines and rental car companies require you to have a credit card as well?
What are your thoughts and information on this?
Thank you in advance!
Mike
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/15/2010 12:40:13 AM
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ladioffaith
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I haven't read Dave Ramsey's book but I know several of his fans who insist on paying cash for everything and not using a debit card.
I personally feel it's much safer to use the card and keep a close eye on your balance.
I've bought plane tickets with a debit card and rented a car with one too.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/15/2010 1:13:11 AM
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kernsfamily
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I've been a "debit card only" user for 7+ years now. Haven't had one problem. Whatsoever.
The credit card companies will do anything to keep their card....and use it...to enslave you to "their rules" (which change all the time...and always to their benefit)....and to make everyone think that in order to "exist", having a credit card (or two or three) is a NECESSITY of life...something that cannot be avoided.
Before we dumped our cards...that was my "thought" (that there's really no reason for me to keep those cards...from those companies who were always trying everything to get more of my money).....then, Dave confirmed my suspicions....that you CAN survive, and thrive, without a credit card. 7+ years later...I am still here. No problems.
(Now I am waiting for "them" to take me away...and put me through some kind of "brainwashing" torture...as I am not supposed to exist...and to "conform" to the "rules" of living in our society).
Oh...the whole "your ALMIGHTY credit score will forever be ruined" myth is hardly true. Our score has never been better. (I think "they" just pulled up in a black van...)
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Proud dad of 3 great girls....Blessed to have all of them in a "totally awesome" public elementary school!
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/15/2010 6:15:56 AM
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Random
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I don't use a debit card for anything (other than as an ATM card). The reason? A few years ago, amazon accidentally double-debited me for a purchase, due to a system problem.
They could not have been more sympathetic, and they did everything to make it right. However, it took two weeks from the time they took the money to the time they put it back, because it took some time to figure out how many people were affected, how to process the fix, etc.
It was only a small dollar amount, so no real damage, but it woke me up to the fact that, even if they are at fault, the money is GONE while you try to figure it out. With a credit card, that risk is not there.
So, I use a CC instead of a debit card, and I pay it off online 2X per month, so the balance never gets very large.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/15/2010 8:26:57 AM
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iluvatar
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quote:
ORIGINAL: Random
It was only a small dollar amount, so no real damage, but it woke me up to the fact that, even if they are at fault, the money is GONE while you try to figure it out. With a credit card, that risk is not there.
BINGO!
Sure, you may have to fight with the credit card company to remove charges from your balance, but ultimately, they don't have your money until you give it to them.
With debit cards, a bank may put a $75 hold on your account for any transaction, even for something inexpensive.
-Dan.
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Well, I've been to one world fair, a picnic, and a rodeo, and that's the stupidest thing I ever heard come over a set of earphones.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/15/2010 9:32:38 AM
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SurpassingPeace
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You can use a debit card to reserve a hotel or rental car but they may freeze up to $500 in your acct.This could result in overdrafts, not having access to your money, etc.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/15/2010 10:09:46 AM
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thebaker
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i've heard him say the same thing about debit cards being as safe as credit cards. waaaaaay back when when i didn't have a credit card, all i used was a debit card. never had a problem. anything you could do with a credit card, i could do with a debit card. i've rented cars, bought plane tickets, rented hotel rooms, did cruises...you name it. and according to a friend, you're not supposed to be able to get a cell phone contract without a cell phone. i never knew that. so when she asked how i got a cell phone without a credit card, i looked at her strange and told her that i have a debit card.
and i've never had anyone take extra money from my account to cover costs. the only thing i don't do is buy gas because i've heard many people say gas stations will take out more to cover what you might buy and then take forever to return the money you didn't use.
but i've noticed a trend...banks seem to be having customers hit the credit button when using the debit card instead of the debit button. with credit, there's no cost to use the debit card. with debit, there is a cost. i'm certain that has to do with money in someone's pockets.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/15/2010 12:14:43 PM
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jhuperetes
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In my experience, some rental companies and airlines will not take debit cards, or even "secured credit cards" at all.
Others, as described by SurpassingPeace, will take an inordinate amount of reserves (in one case triple the amount of the room), which does not come off/reversed sometimes for weeks.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/16/2010 12:13:25 AM
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relady
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From: Greater St. Louis Metro
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quote:
Also, don't some hotels, airlines and rental car companies require you to have a credit card as well? I have rented cars, made airline reservations and hotel reservations with my debit card. To date the only one I've really had any kind of issue with is the rental car -- last time I rented with the debit card, they took $150 up front and I had to fill out a page long "application" and provide a utility bill and a paycheck stub to get the car. I won't be doing that again soon. There are times when it is good to have ONE credit card for certain things.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/16/2010 6:58:06 PM
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WasLostAmFound
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I have bought everything from plane tickets to fast food with my debit card. I usually punch "credit" because my credit union will charge me $.25 to process it as a debit. There's a couple upsides to using the credit option...not the least of which is it takes a couple of days to hit my account (VERY useful 2 days before payday when my gas tank is empty).
I've never had anyone put a hold on more money, even when I've spent over 2000.00 in one day (plane tickets, hotel, etc all online).
I have NO credit cards and haven't had any for years. I don't plan to get another one. If I don't have the $$, it doesn't happen...it's that simple to me.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/18/2010 5:36:49 PM
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eaglelady11
Posts: 332
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quote:
ORIGINAL: kernsfamily
I've been a "debit card only" user for 7+ years now. Haven't had one problem. Whatsoever.
The credit card companies will do anything to keep their card....and use it...to enslave you to "their rules" (which change all the time...and always to their benefit)....and to make everyone think that in order to "exist", having a credit card (or two or three) is a NECESSITY of life...something that cannot be avoided.
Before we dumped our cards...that was my "thought" (that there's really no reason for me to keep those cards...from those companies who were always trying everything to get more of my money).....then, Dave confirmed my suspicions....that you CAN survive, and thrive, without a credit card. 7+ years later...I am still here. No problems.
(Now I am waiting for "them" to take me away...and put me through some kind of "brainwashing" torture...as I am not supposed to exist...and to "conform" to the "rules" of living in our society).
Oh...the whole "your ALMIGHTY credit score will forever be ruined" myth is hardly true. Our score has never been better. (I think "they" just pulled up in a black van...)
what she (or he) said. I have a debit card and use it for everyday purchases, but lately, I hav been paying cash. Closed all my credit cards. It's true, you can survive without credit cards and car loan and past loans of what I have paid off have given me a good credit score.
Gotta go, the black van is here for me too.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/18/2010 8:53:23 PM
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jhuperetes
Posts: 1946
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I agree.
There is nothing wrong with credit cards if it is paid off within a reasonable time frame.
If they are "wrong", then mortgages, car leases & loans, and even school loans are "wrong".
quote:
ORIGINAL: Mollymouser
We make thousands of dollars in cash back from our credit card ~ and we've never paid one finance charge or one cent of interest on it. To me, that's good stewardship.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/18/2010 9:00:42 PM
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Patriciahere
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What I like about using my debit card is that the bank "rounds up" the dollar amount and puts the extra in my savings and once a year they match part of what was transferred to the savings account. It also helps keep the spending in check--can only spend the money I actually have.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/19/2010 8:31:25 AM
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heremainsfaithful
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When I use my debit card I am buying things with money I actually have in the bank. When I use a credit card I am buying things I really can't afford right now but will pay on in chunks until I have "really" bought it. Debit card is paying for it, credit card is debt. So I prefer a debit card whenever possible.
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Jer. 29:11, II Tim. 2:13, Jude 24, 25
https://www2.xlibris.com/bookstore/bookdisplay.aspx?bookid=58896
Eihstein's IQ may be higher than mine, but God's IQ is higher than anyone's.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/19/2010 2:52:08 PM
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SurpassingPeace
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quote:
When I use my debit card I am buying things with money I actually have in the bank. When I use a credit card I am buying things I really can't afford right now but will pay on in chunks until I have "really" bought it. Debit card is paying for it, credit card is debt. So I prefer a debit card whenever possible.
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But using a credit card is not debt for everybody. My parents use a credit card for every single purchase. They get money back in rewards, extended warrenties, easier to dispute if there is a problem, a statement at the end of the year that breaks down everything they have spent, and really many more benefits. Here is the key. They pay that card off in full, every single month. It is not debt to them.
I will not use a debit card to buy on line. Your responsibility if something goes wrong, such as indentity theft is too high for me to chance. But again, I pay that credit card off with my bank acct when it comes in the mail.
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Karen
Proud Member of the Imperfect Wives' Club
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/20/2010 2:12:21 AM
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A-Mighty-Oak
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I can use my ATM non debit card for POS transactions. It works out quite well that way.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/20/2010 9:10:41 AM
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heremainsfaithful
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I see nothing wrong with using a credit card if one can be responsible. I just thought it was weird that an organization that is all about only spending money you have in hand seemed to be against debit cards - which are only usable if you do have money in hand. That just sounded weird to me.
And I think there is some truth to the identity theft thing. A Visa company would probably work with you easier on that than your bank, depending on the bank. I have no doubt - based on my experiences and some of my friends' - that if our debit card use online resulted in identity theft, our bank would probably be a real bear to deal with.
_____________________________
Jer. 29:11, II Tim. 2:13, Jude 24, 25
https://www2.xlibris.com/bookstore/bookdisplay.aspx?bookid=58896
Eihstein's IQ may be higher than mine, but God's IQ is higher than anyone's.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/20/2010 3:17:33 PM
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A-Mighty-Oak
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My bank now has a visa debit card, but I prefer to have a card with no debit on it at all.
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RE: Is Using A Debit Card vs. A Credit Card Really That... - 2/21/2010 4:14:16 AM
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kernsfamily
Posts: 516
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quote:
ORIGINAL: jhuperetes
I agree.
There is nothing wrong with credit cards if it is paid off within a reasonable time frame.
If they are "wrong", then mortgages, car leases & loans, and even school loans are "wrong".
quote:
ORIGINAL: Mollymouser
We make thousands of dollars in cash back from our credit card ~ and we've never paid one finance charge or one cent of interest on it. To me, that's good stewardship.
Though...far too often....experiences with credit cards end up like mine...
Due dates radically change almost month to month..."Grace periods" change...All sorts of "fees" and charges (for things like "credit protection") magically appear on the bill that I didn't ask for, and take hours of haggling to get removed....limitations on how often I can 'pay off' my bill (many card stipulate one payment per billing cycle)....
iam not even going to get into APR manipulation...and what they can do to you % rate every time you sneeze!
Many people, like me have had these..and many other problems from the credit card companies (which led me to "firing" them)...
Do these things happen to mortgages, car loans or student loans? NO. Once the terms of the agreement are 'signed'....and the company lives up to the agreed upon terms.
Credit card companies can, and do, change 'the rules" and terms as often as they please...and it's always done to benefit THEM!
i see no use in using a 'middle man' to pay my way through "day to day" purchases.....I earn the 'almighty' points with my DEBIT card....and, yet, know that there is no 'middle man' looking to "shake me down" for as much money as he can get...
if you've figured out a way to not get ripped off...great...iam glad for you....but, one day someone just may be coming to break your knee caps....it's what happens to many who try to play "the game"....
_____________________________
Proud dad of 3 great girls....Blessed to have all of them in a "totally awesome" public elementary school!
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