Credit Cards vs Debit Cards

Strife212 · 13 Oct 2010 at 17:47

[TW]Fox;17566748 said:
Errr this seems way off the mark, I don't know many people at all who fit into the first description.

I buy most large things on credit card and clear the balance in full every month by Direct Debit, as I'm sure many do?

Thats the second category I suppose. Although, surely not many people do the first. It's hard to do these days as well as CC companies have caught on.

MiNxYyY · 13 Oct 2010 at 17:50

Who's offering the best deal's atm on CC's?

Ironic Namesake · 13 Oct 2010 at 18:01

PMKeates said:
Credit cards are great. However, I just applied for an Amex cashback card and got refused?!

Warpath!

The Amex Platinum Cashback? Maybe they've changed the rules but I got mine a few years ago and am only 23 now :confused:

[TW]Fox · 13 Oct 2010 at 18:04

Strife212 said:
Thats the second category I suppose. Although, surely not many people do the first. It's hard to do these days as well as CC companies have caught on.

No, it really isnt! His description was:

The second person requires money and therefore leans on the credit card to gain extra credit, typically for support and emergencies.

I don't 'require money' nor 'lean on the credit card' and neither do many other people. We use credit cards for the additional benefits and protection - we have the cash to pay in full then and there if we wanted to.

Bassmansam · 13 Oct 2010 at 18:17

You can use debit cards abroad.

jamoor · 13 Oct 2010 at 18:19

I generally use it for buying off the internet and when travelling, I don't fancy hotels, car hire companies etc blocking a few hundred pounds off my bank account.

alx · 13 Oct 2010 at 18:34

PMKeates said:
It seems silly to set a £30,000 minimum income and then not accept people who are far beyond it (a HR tax payer is >45% beyond).

But the >£30,000 income isn't the only condition....

K.C. Leblanc · 13 Oct 2010 at 18:35

Bassmansam said:
You can use debit cards abroad.

Yes, although the name are different they're basically just a Visa or a Mastercharge. Visa electron or it's Mastercard equivelent might be a problem.

My advice, and I'm a hypocrite here because although I understand finance I'm very bad at applying it.
Is to get a low limit credit card (about the amount you spend on debit cards over the month) and use this for all your card spending. The simple reason is if your debit card gets defrauded you end up with no money in your bank account, that's the money you need for rent or bills or possibly even food or beer.

If your credit card gets defrauded all that happens is a big number appears on the statement.

Both should get refunded by the bank, but the credit card will be less inconvenient. The key is to make sure you use the online banking to keep track of it.

Tute · 13 Oct 2010 at 19:11

Duke said:
You do know credit cards are far safe online than a debit card?

Not for my balance they're not.

[TW]Fox · 13 Oct 2010 at 19:13

Tute said:
Not for my balance they're not.

I never understand this. Are you 14 years old or something? Why is it so hard to... not buy something if you dont have the money for it :confused:

Just because youve got a credit card doesnt mean you have to buy loads of rubbish on it? I dont understand.

Tute · 13 Oct 2010 at 19:18

I don't understand either. That's just the way it is. I tend to impulse buy and my form of control is to... not have a credit card.

Energize · 13 Oct 2010 at 19:19

Strife212 said:
Can you get a bank overdraft for as much as your credit limit? Unlikely

Student 0% overdrafts can be in the 3K region.

Credit cards are good for cashback. Visa debit cards are better for small purchases though because of the protection that credit cards don't have.

Wizzfizz · 13 Oct 2010 at 19:24

[TW]Fox;17567658 said:
I never understand this. Are you 14 years old or something? Why is it so hard to... not buy something if you dont have the money for it

Just because youve got a credit card doesnt mean you have to buy loads of rubbish on it? I dont understand.

I'll have what ever you're smoking, Joe.

I'm at the understanding that he's already said that he doesn't have or use a CC.

[TW]Fox · 13 Oct 2010 at 19:26

Wizzfizz said:
I'll have what ever you're smoking, Joe.

I'm at the understanding that he's already said that he doesn't have or use a CC.

We are talking about his reasons for not having one.

PMKeates · 13 Oct 2010 at 19:27

sh4rk said:
But the >£30,000 income isn't the only condition....

If income is a reason why my application was declined, yet I exceed the income requirements, then the income requirements need to be changed. Either that, or it's actually the combination of more than one factor that my application was declined.

cee-S-dee · 13 Oct 2010 at 19:35

[TW]Fox;17567658 said:
I never understand this. Are you 14 years old or something? Why is it so hard to... not buy something if you dont have the money for it

Just because youve got a credit card doesnt mean you have to buy loads of rubbish on it? I dont understand.

But isn't this why credit cards exist? They pray on the people who will say "I'll pay this off this month" but don't so incur interest?

Yes smart people use them to their advantage but most people use them because they don't have the money.

Westyfield2 · 13 Oct 2010 at 19:35

I've had a Credit Card since I was 19 and use it for most stuff, only thing I use the Debit Card for is cashpoint. Got the Credit Card purely for the protection side of things. I live within my means and pay it off in full every month

.

Wizzfizz · 13 Oct 2010 at 19:36

[TW]Fox;17567767 said:
We are talking about his reasons for not having one.

What?

More like insulting and then patronising.

Anyway I don't mind using my CC as it has many bonuses. I do always pay off in full each month via DD if I do buy anything. I think a CC is great if you don't abuse it as it has the added bonus of security when buying online etc.

Wizzfizz · 13 Oct 2010 at 19:37

double post

platinum87 · 13 Oct 2010 at 19:45

SMN said:
What are the *actual benefits* of having a credit card as opposed to debit cards? Im 23 and i've never had a credit card, nor overdraft, so i'm struggling to understand why i'd ever need one.

1) building up your credit history, even though you afford something, a computer will tell you to **** off.. It does happen, i know a few cases

2) Cash flow..

There are many little reasons which if you cant think off them then its not important.

SMN said:
Surely if someone needs money, but doesnt have it until the end of the week, then why not get an overdraft on your debit cards (barring interest obv)?

Not enough overdraft i suppose?

SMN said:
Aside from liability on large purchases and building up a credit history, are there any real tangible (sp) benefits to moving to a Credit card from a debit card?

BR,
SMN.

I advise every single person to atleast have 1 credit card, and have the balance paid in FULL each month. You basically use it like you would a debit card, and you dont spend money you dont have. (Because it is paid in full automatically each month) .
It builds up your credit history for something you might need in the future.
And some have cashback deals