Comment posted Why do people prefer to use credit cards instead of debit cards ? by ccppc.
“1. Credit cards are not safer then DC. If your DC has a Visa Logo and you use it like a credit card (you sign for it not put in your pin) you are coved just like a Visa CC if one dime is lost or stolen VISA not your bank will put it back in your account.”
But they don’t put it back immediately. So, if someone steals your debit card and drains your bank account, you are screwed until the cash is put back. Don’t know about you, but I don’t like being penniless.
Also, using your credit card instead of your debit card allows you to earn interest on that money until the bill comes, because it will still be in your bank account. It’s called float. Just make sure you pay off the balance each month.
There is nothing wrong with using credit cards, as long as you do so responsibly, just like everything else in life.
ccppc also commented
- Well, frankly, people use credit cards as opposed to debit cards because they don’t have the money they’re spending.
Granted, using a credit card regularly can help build up a credit score – which is perhaps why 5-10% of people use credit cards – but they generally keep balances low. Debit cards won’t help you build credit. Secured credit cards will – I think they’re a pretty solid concept.
If you’re looking for credit cards to apply for, I’d suggest visiting http://www.zeroaprcreditcard.com
- I think there are 2 main reasons people use Credit Cards (CC) over debt cards (DC)
1. Most people don’t have the cash to buy what they want. I have seen stats that show that 70% of Americans live pay check to paycheck. But the US is an “I want it now society” so CC are the only answer that is fast and easy.
2. The amount of Marketing spent by big banks to get you to use a credit card. Over 60% of all direct marketing is for credit cards. Also they pay so called Finance advisors to say that you should use your credit cards for dumb reason like its safer, or it will build your credit or you will get rewards. Because of that many people think credit cards are a good thing.
Just for your information
1. Credit cards are not safer then DC. If your DC has a Visa Logo and you use it like a credit card (you sign for it not put in your pin) you are coved just like a Visa CC if one dime is lost or stolen VISA not your bank will put it back in your account.
2. Your credit score is an I love debt score the only true way to make your credit score better is to take out more debt which is a bad idea.
3. Study have shown that when you charge things on a credit card you spend up to 30% more (why do you think McDonalds and other places are now taking Credit Cards there average sale go up by 30%) So what if you get a 5% cash back if you are over spending by 30% once again not a good plan. - I use my credit cards because they offer frequent flier miles and cash back (1-5%) with greater security on purchases and against theft. My debit card offers a measly .025% back with little security. I budget my spending each month so I know what I can put on the CC. I keep my cash in a 4.5% interest savings account, then transfer what I need into my checking account and pay off my CC balance each month before interest ever accrues.
If you’re responsible and keep on top of your finances, CCs are not the spawn of the devil, they are a useful financial tool.
- i prefer to use my credit card as I get airline miles for each dollar I spend. I have my entire balance automatically debited from my checking account each month, and I only use the card as I would a debit- if I don’t have the money to pay, I don’t buy! I use my credit card for all my monthly bills EXCEPT my mortgage (company does not accept). I have to spend the money anyway, might as well get something for it! I manage to earn between 30000-50000 miles a year using my credit card for everything possible!
- I know some people who use credit rather than debit for ordinary purchases because they have reward-type programs on their credit cards. They pay the bill in full monthly so there is no interest, but they also get the benefit of accumulating reward-points more rapidly (such as cash-back, mileage points, etc.).
Recent comments by ccppc
- Why are certain credit cards that I have had not showing up on my credit report?
Your agreement with the credit card company has absolutely nothing to do with your credit report. Of course you still owe the money!Have you checked all three credit bureaus? Sometimes a creditor only reports to one. Some creditors don’t bother to report till you default. There’s no requirement for creditors to report good payment history.
You can have the two cards added to your report. The credit bureau will charge you. Check here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.shtm
- How Much Cheaper Are Loans And Mortgages For Bank Employees?
Bank employees definitely get a discount. Here in South Africa our interest rates at 10.5% and our banking staff, depending on which bank, gets up to 3% discount off prime. So I would suggest finding out from your human resources or personnel office what they offer. You won’t get a discount on the car but you should get a discount on the financing. - How Much Cheaper Are Loans And Mortgages For Bank Employees?
Rates are the same, but in some banks ( not sure about Barclays) employees get a price break on closing costs, like low or no Processing fees, low or no Underwriting fees…. but thats about it. - How Much Cheaper Are Loans And Mortgages For Bank Employees?
Neither. A bank employee wouldn’t be supplied with a car unless they are an higher ranking executive just like at any corporation.
Certainly they don’t get a 10% discount – they pay the same rates as everyone else. - Why are certain credit cards that I have had not showing up on my credit report?
Well, both should still be because one you just pay off last year, that should be on your credit report till 2012, and the one that you are still paying. I hope you are paying on time…because you should request them to report to the three credit card agencies. (this is the only reason that I can think of that they are not on your credit report). Yes, you are still responsible for this one you are still paying. Just because..you did spend the money, and I am very sure for definitely that this credit card company will report you to three credit agencies one you are late on your payment, which will ruin your credit score. So keep paying on time and request them to report to the credit agencies. Because that will only help you with your credit score due to your debt ratio is lowered, paying on time, and longer credit history. So to take action to request them to report to the credit agencies.
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