Comments on: Why Debit Cards Are Better Than Credit Cards

By: Justin

Justin — Thu, 01 May 2008 19:04:49 +0000

Make Friends dude, no, you can’t only spend what’s in your bank account. The bank will allow you to spend more than what is in your account and then will charge you fees for the privilege, for EVERY CHARGE over the balance. It’s easy to rack up hundreds of dollars in fees for $1, $2, $5 purchases made on your debit card this way.

By: Make Friends, Earn Money

Make Friends, Earn Money — Thu, 01 May 2008 18:51:00 +0000

I personally like that debit cards are great for people who are habitual spenders because you can only spend what’s in your bank account rather than racking up huge credit debt. I do have concerns however about their security because if someone intercepts the card number they can withdraw staright from your account. Whilst you’ll get the money back if you’re a vicitm of fraud, it’s very time consuming

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By: MITBeta

MITBeta — Fri, 18 Jan 2008 13:07:38 +0000

More fuel on the fire:

http://www.fivecentnickel.com/2008/01/16/yet-another-reason-credit-cards-are-better-than-debit-cards/

By: MITBeta

MITBeta — Sat, 12 Jan 2008 01:40:25 +0000

By: glblguy

glblguy — Fri, 11 Jan 2008 22:30:13 +0000

MITBeta – Ok, I agree. I made some changes to the article and added a note at the end. See what you think.

By: MITBeta

MITBeta — Fri, 11 Jan 2008 20:24:08 +0000

Your opinion is fine, but you state:

“Reality: Credit cards are protected by the The Fair Credit Billing Act and debit cards are not. Policies instituted by banks do give you the same levels of protection.”

This is simply not true.

By: glblguy

glblguy — Fri, 11 Jan 2008 20:18:04 +0000

@MITBeta – The reason I “cling” is not due to the protections. In my instance with my bank, I would argue the protections are equal, just not mandated. Sure,maybe the bank won’t honor them, but that is a risk I am willing to take. In my recent experience having my card stolen and card used, the bank refunded all of money within 48 hours.

I cling because I don’t trust credit card companies and I don’t like borrowing money, if even for 30 days. If you are comfortable using credit cards, that is a personal choice you’ve made that I respect. I don’t feel that is the right choice for me, and hence why I voice my opinions about them on this blog. For me debit cards are better than credit cards…but better is a very subjective word. What is better for me, may not be better for you right?

I think that’s great you’ve made that much money, but if you play with fire, you’re bound to get burnt. I think this all boils down to personal feelings and comfort. I’ve been burned by credit card companies, and have chosen to not let that happen again.

By: MITBeta

MITBeta — Fri, 11 Jan 2008 19:21:32 +0000

Glblguy: You stated in your initial post that the protections on debit cards are equal to the protections on credit cards. This is simply not true, and you’ve had a number of people prove you wrong in the comments, yet you cling to your assertion that debit cards are better than credit cards.

By the way, since your initial post I have made approximately $500 in interest on a 1yr 0% APR credit card float, plus another $250 in rewards cash. I still have 6 months of 0% APR on my rewards card, and I fully intend that by the end of that period I’ll have $30,000 sitting in my high interest savings account earning $200/month in interest on the bank’s dime. Try doing that with a debit card.

By: Justin

Justin — Fri, 11 Jan 2008 19:14:57 +0000

Chris’s experience is one of the major reasons I prefer to use a CC, the protections are mandated and not just policies than can be changed with 6 point type at the back of a new privacy statement.