Which Do You Think is Better? Debit or Credit?

[Mytical]

Although I prefer the Debit card..a bit of cautionary advice.

Be careful to understand how your bank conducts their business, fees, and such. Let me explain.

There are a lot of banks that 'prioritize' debit card purchases, in order to get the most fees. They claim it is 'because that is how clients want it', but in honesty it is to get more money from those who least can afford it. Bank of America did this quite blatently recently, and are recieving some flack for it, but it is a common practice.

First..there is an 'overdraft' fee PER item, then a 'daily fee' if you owe them money. Lets say you have $100 left in the bank, you mess up and make the following purchases in this order.

A $10 'fast food' purchase.
A $5 dollar Misc Purchase
A $20 gas purchase
A $100 dollar electric bill payment.

All with your debit card. Yeah you messed up, and should get a fee..if they took it out in this order..you would get 1 fee. But...that is not how they take it out.

They take the 100 payment out FIRST. Leaving you with 0. No fee for that.

Then they take out the 5, and you get zapped for $29..meaning you pay 34 for that 5 dollars

Then they take out the 10, and you get zapped for 29 more..so that is 39 for that fast food.

Then the 20, and again you get zapped for 29...meaning 49 for that gass purchase.

They make 3x29 (+ whatever daily fee until you bring it back over 0) instead of 1 $29 dollar fee.

[muses_nightmare]

Frankly, I use credit for pretty much everything. I'd never be able to buy groceries, or basic needs without it. And while I am in debt up to my ears, it's not the credit cards that cause that, student loans, car payments, and rent are to blame for that. Me and my boyfriend would never get by without credit. I don't know how anyone does really, I mean, there are so many things you simply can't do without it, or that you have to pay a huge deposit on because you don't have credit.

This is coming from someone who used to say she'd never have a credit card. I have 5 now, not that I use them all at once, one or two are for specific stores, and we generally only use one card, the others are there for emergencies. (that and costco only takes amex, otherwise we'd never have that)

I also like the rewards points we get on our one card, we haven't paid to see a movie in theatres for 2 years or more. At $12-$13 for admission, it's saved us a heck of a lot of money that way, and we still get to go out and do something for entertainment even if we don't have money right then.

[Fashion Lad!]

I use my debit card as a credit card because it's a Visa Check Card. I do have a couple of credit cards. AMEX Platinum and a Best Buy MasterCard. I'm sorry, I just love Best Buy so much. But really, 999/1000, I will be paying with the my check card.