[JASPREET]

You can earn more rewards on credit card spending as compared to debit card spends

[Tendz]

A debit card is linked directly to your checking account, so when you make a purchase using it, the money is immediately deducted from your account. On the other hand, a credit card allows you to borrow money from the issuing bank up to a certain limit. You are required to pay back this borrowed amount, along with any interest charges, at a later date.

[Vehlijanta]

Credit card's are gaining more popularity although it's expensive to work with these because of the few and hidden charges

[OldGuy]

Although this is an old topic that already has dozens of similar replies, I am astounded to see that no one has even mentioned the greatest difference between credit cards and debit cards.

Yes, you are spending your own money with the debit card and yes, you are actually spending the credit card backer's money in advance and incurring a debt to repay the loan, but the greatest difference is the security and insured coverage for any fraud or illegal access to your funds.

If you use your debit card, your own money is at risk with very little chance for recovery. Say a hacker gains access to an online transaction. If they gain access to your own account, they can drain the account down to zero and you are not likely to get it back. If you encounter a dishonest vendor, they can do the same with little recourse. The money is most likely gone at your own expense with no protection. It happens a lot to many people at millions of dollars lost every year.

On the other hand, if you use a credit card for the transaction, the bank is backing your transaction with the bank's insurance and lawyers to protect the bank's funds. If a hacker somehow gains access to the transaction, the bank will step in to protect the account and even return stolen funds to you. If you encounter a fraudulent vendor, the bank will step in to reverse the charges if necessary to keep you from losing funds for a dishonest transaction. The bank will protect you even if you order but receive a broken or substituted product.

There is a significant level of financial protection with credit cards that does not exist with debit cards. That is the real difference between the two. You just have to make sure you pay the credit card invoice when due. Every online transaction is at risk. It is not safe to use a debit card for any online transaction. You can easily lose a lot more than the amount of the transaction itself. Credit card transactions are protected by the banks that back the card.

[Vehlijanta]

I was not aware of the Insurance on credit card usage fraud so thanks for Explaining that

[Tendz]

Using a credit card responsibly can help build your credit history and improve your credit score, while debit card transactions do not impact your credit score.

[Angie10]

I absolutely love the fact that you have more protection with a credit card, but I won't be getting one any time soon I used to have one for years and could never stop myself spending So I decided to cut it up and be done with it. I'd rather get a separate pre-paid card I can load up and use for my online transactions.

[Vehlijanta]

I am interested in getting a credit card now because of it's insurance option that saves us from any fraudulent payments

[Treborika]

Debit card is meant for minus or withdrawal while credit adds money

[JASPREET]

I love the credit card more now and debit card is more like a burden to me

[augusta]

When if you have a good source of making money you would always enjoy your credit card thsn your debit card

[oldbuddy]

Another big advantage of Credit Cards is you can get cash-back cards where they pay you a percentage of your purchases back. I have over $900 on had right now. But what I like ven better is working online for Gift Cards from merchandisers like Amazon. At least in the USA it's like Gold in a Vault and it never expires.

[JASPREET]

Another big advantage of Credit Cards is you can get cash-back cards where they pay you a percentage of your purchases back. I have over $900 on had right now. But what I like ven better is working online for Gift Cards from merchandisers like Amazon. At least in the USA it's like Gold in a Vault and it never expires.

I didn't understand what is Cashback cards. Is this a different card or extra reward for shopping from different websites

[Vehlijanta]

Credit Card is so useful but if you are not careful about your spendings then you'll face so many problems

[oldbuddy]

Credit Card is so useful but if you are not careful about your spendings then you'll face so many problems

That is a decision only you can make (and keep). Personally, I don't have any problem with it. I have enough on deposit to pay for a year or more and set it on autopay, so there is no further decisions to be made.

[holdoors]

A credit card lets you borrow money from the bank to make purchases and pay later, often with interest if not paid in full. A debit card, on the other hand, uses your own money directly from your bank account for immediate payment with no interest.

--- 14 Aug 2024, 11:46 ---

That is a decision only you can make (and keep). Personally, I don't have any problem with it. I have enough on deposit to pay for a year or more and set it on autopay, so there is no further decisions to be made.

One needs to have the discipline to not overutilize the credit facility .

[Vehlijanta]

Credit Card is so useful but if you are not careful about your spendings then you'll face so many problems

That is a decision only you can make (and keep). Personally, I don't have any problem with it. I have enough on deposit to pay for a year or more and set it on autopay, so there is no further decisions to be made.

Good thing. If you are keeping it under control then it's perfectly fine

[augusta]

For me I prefer to always use my debit card as it keeps me from having any Owings as I'm not good with it.

[JASPREET]

I have started to like Credit card more now as its convenient and we can earn rewards on our spends

[Tendz]

As long as we use credit card responsibly and pay off the balance in full each month, they can be a valuable financial tool.