Which is better Credit or Debit Card ?

Dannydebt

Quick Question, what is better a Debit Card or Credit Card ?, I have a Visa Debit (Delta) card, and it seems to be accepted everywhere I could use a Credit Card, am I missing something or do I really have no need for a Credit Card, even though people say you can't live or do anything nowadays without a Credit Card !.

DGJsaver

Dannydebt wrote: »

Quick Question, what is better a Debit Card or Credit Card ?, I have a Visa Debit (Delta) card, and it seems to be accepted everywhere I could use a Credit Card, am I missing something or do I really have no need for a Credit Card, even though people say you can't live or do anything nowadays without a Credit Card !.

What a crazy post !

If you dont need credit , you dont need a credit card if you do need credit , get one

CLAPTON

There are several reasons why you may want to consider getting a credit card

a. for any purchase over 100 the CC company is jointly responsible for the product with the retailer... so if e.g. the retailer went out of business etc you could get a refund from the CC (google section 75 )

b. if properly used (i.e. paid on time ) it is recorded in your credit record which builds a good credit history... could be useful if applying for credit e.g. mortgage (maybe) or contract mobile or a loan )

c. some cards give cashback say 1 or 2% ... won't make you rich

d. some like it for budgetting as you don't have to check you have enough in your current a/c ... but this can be a disadvantage too of course.

the down side is that its tempting to spend too much and only make part payments so you end up spending lots on interest.

so horses for courses....

DGJsaver

well put Clapton

D

jamesd

One other advantage of the credit card is that you are delaying paying the bills by 25-55 days and you can earn interest on the money for that time if you're paying the bill in full. Use a debit card and you lose the interest immediately, as well as needing more cash on hand to be prepared for the charges, instead of having a fixed date when you must move the money out of a savings account.

This is worth 25-45 a year for 500 a month average spend, depending on the time between purchase and bill payment, assuming 6% interest rate on savings. If most of your purchasing is 50 days from bill payment day you get the higher amount; if it's all on the latest day that will be on the next bill, you get nearer the lower amount.

Add 60 a year from 1% cashback on 500 a month and you're making 85-105 a year just by using your credit card instead of a debit card.

Do a big shop on the first day of the new billing period and stock up on all the non-perishables and thank your credit card company for the interest they are letting you make at their expense.

DGJsaver

Al_Mac wrote: »

Dannydebt, please ignore the irritating comments of the above poster, has has shown himself to be little ignorant of basic financial information and is trying to make out he isn't.His signature sort of gives it away.

Do a search on stoozing. There are several methods. But all need you to be disciplined.

I remeber my first CC , it was a halifax , i thought it was xmas come early...











It wasnt

DGJsaver

Dannydebt wrote: »

Quick Question, what is better a Debit Card or Credit Card ?, I have a Visa Debit (Delta) card, and it seems to be accepted everywhere I could use a Credit Card, am I missing something or do I really have no need for a Credit Card, even though people say you can't live or do anything nowadays without a Credit Card !.

Anyway danny , my advice is if youre a youngster as i am guessing you are , steer clear of credit cards until you have managed money and your accounts for a while , if you read martins articles you will see that although stoozing IS a cracking way of using money you do have to be very on top of your game finacially to ensure it doesnt go wrong

D