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Established Contributor
Koop10010
Posts: 731
Registered: ‎02-15-2012
0

Re: My debit card gets no more love

Credit cards generally seem to be the more rational choice between using credit, debit, or cash for a majority of purchases.  Credit cards offer more security, because it's the lenders money that's put at risk, not yours.  Also, if you carry large amounts of cash and that gets stolen, you lose it all, but if you lose a credit card, you don't lose anything.  Obviously, cash doesn't come with any rewards, and many debit cards don't have rewards.  Plus, those that do are often weak programs compared to a credit card rewards program.  Some people seem to have an irrational aversion to credit cards because they are a debt, even if paid in full.  But there is a difference between using credit and being dependent on credit.  I use credit cards because I benefit from them, but I'm not dependent upon them. 

 

Just owing somebody money doesn't mean that you're in a bad financial situation.  If you have thousands in the bank, but borrow $20 from a friend because you forgot your wallet, are you now financially irresponsible?  What about taking out a loan to start a business or buy a house?  The only thing that can make using cash or debit a better choice, is if using credit causes you to be more careless with your spending.  If you find you are more likely to make impulse purchases or spend more than you need to with credit cards, then you should consider debit cards and cash.  Personally, I actually found that I was more careless with cash or debit than I am using credit cards.  Credit cards have helped me to see how I spend my money and how much I spend per month, whereas with cash it was pretty much spend and forget.

FICOs (2/24/12): EX 752, EQ 740
Chase Sapphire Preferred, Freedom; American Express PR Gold, Blue Cash Everyday
Established Contributor
ztnjpv
Posts: 726
Registered: ‎02-01-2012
0

Re: My debit card gets no more love

Mine are in my bedroom drawer. Haven't seen them in a long time. ;-)

 


Starting Scores (Sept 2011): All lower-mid 600s. CURRENTLY: TU FICO: 801 (3/28/14), EQ FICO 808 (3/28/14), EX FICO 798 (9/4/13) (PSECU). Goal: Achieved! Now Maintain!
Established Contributor
ztnjpv
Posts: 726
Registered: ‎02-01-2012
0

Re: My debit card gets no more love

[ Edited ]

Koop10010 said: " I use credit cards because I benefit from them, but I'm not dependent upon them. "

 

+1 Yes. Me too. I've gone full bore with cash back cards in my business. In 9 weeks, I've already earned over $720. By the middle-end of June, current balances + projected auto-payments still to come will have me over $1100. 

 

Not bad for not buying anything I wasn't already going to buy anyway. :smileywink:

 

Those articles warning people about using rewards credit cards for daily purchasing are so funny. You'd think there was something profound to learn about in the article. Nope. It's just the old "The cards will own you and sink you into debt and misery" kind of stuff. That's good advice for the immature and deadbeats....but not for the enterprising and diligent among us. 


Starting Scores (Sept 2011): All lower-mid 600s. CURRENTLY: TU FICO: 801 (3/28/14), EQ FICO 808 (3/28/14), EX FICO 798 (9/4/13) (PSECU). Goal: Achieved! Now Maintain!
Valued Contributor
bribro
Posts: 1,367
Registered: ‎04-20-2012
0

Re: My debit card gets no more love

Okay, so there is absolutely no logical reason to use a debit card over a credit card. Just checking. :smileyhappy:

TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

J.P. Morgan Palladium ($250k) | AmEx Platinum (NPSL) | AmEx SPG Personal/Business ($50k/$50k) | Citi Executive AAdvantage WEMC ($50k) | Citi Dividend WEMC ($50k) | Chase Sapphire Preferred VS ($50k) | Chase Ink Bold WEMC ($50k Flex) | Chase Ink Plus WEMC ($25k) | Chase Freedom VS ($25k) | Chase Freedom WMC ($25k) | Chase MileagePlus Explorer ($25k) | Chase Southwest RR Plus Business/Personal ($15k/$15k) | Barclays US Airways ($25k) | Barclays Hawaiian Airlines ($25k) | BofA Alaska Airlines ($10k) | Lexus Financial Services ($30k) | Mercedes-Benz Financial Services ($50k)
Contributor
Pworld
Posts: 114
Registered: ‎12-29-2008
0

Re: My debit card gets no more love

After reading on how CC use can build my credit, and being more informed about debit card risk and exposure.....

 

I have stopped carrying my debits as of 2 weeks ago. They are in my safe at home(aka my sock drawer). I pull them out once a month to run to the ATM by my house and pull out cash, or when the cash in my safe is low and i need to replace it. I figure at an atm i can get out what 300-400 in an emergency? well im used to carrying 300 on me. That can usually get me out of any sticky situation if need be. 

 

Credit Cards allow me to feel more protected against fraud, and with my Amex extended warranty and purchase protection for 90 days!! Also rewards add up. Felt i was running so much thru my debit and getting nothing in return. Even the principle of getting a penny back is better than nothing. Plus i am finding i am saving money and its easier to manage just paying off my CC in full once or twice a month. And all my CC come with analyst reports and blah blah blah. I am sure this will do well for me end of year budgeting and such. 

2/2011=EQ: 590
11/2012=EQ: 683 (after 4 card app spree and reporting)
10/2013=EQ: 708 (reached my goal!! for 2013) EX(amex): 668 TU(Disc):680
Goal = 725 by 6/2014
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New Contributor
CreviceTool
Posts: 51
Registered: ‎08-14-2012
0

Re: My debit card gets no more love


bribro wrote:

Okay, so there is absolutely no logical reason to use a debit card over a credit card. Just checking. :smileyhappy:


Well, that's not always the case.  The checking account I have with my CU has a few perks:  no monthly fee, reimbursement of ATM fees that other ATM owners may charge, and interest on my checking account balance.  I get paid to use their checking, but one of the contingencies of some of those perks is that I must use my debit card ten times each month.  So I use my debit for my very smallest purchases, and pass everything else through CC with rewards.  Using the CC pays twice:  I get the cashback from using the card, and since I average close to $1k in purchases every month, floating that money on a CC account essentially means my checking balance averages $1k higher than it would if I paid for everything immediately, resulting in more interest on my checking balance.  My mortgage lender is the only financial institution that I directly pay to use, instead of the other way around.  :smileyhappy:

Senior Contributor
Open123
Posts: 4,089
Registered: ‎02-23-2011
0

Re: My debit card gets no more love

[ Edited ]

CreviceTool wrote:
I get paid to use their checking, but one of the contingencies of some of those perks is that I must use my debit card ten times each month.  So I use my debit for my very smallest purchases, and pass everything else through CC with rewards.  

Salient point.

 

For me, the keys are rewards and benefits.  Credit, debit, prepaid or otherwise, if there aren't rewards, I aint using it.  I would rather use a debit card with rewards than a CC with no rewards.  These days, I see absolutely no reason to use any card with no rewards structure, unless I wanted low apr financing.

 

 


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