Credit/Debit Cards?
Whats better? Debit or credit cards? Never understood credit cards
Spoiler
Debit… imo.
Moved to money and finance.
Moved to money and finance.
Original post by iEthan
Debit… imo.
Moved to money and finance.
Moved to money and finance.
So it was you
Original post by Lord Samosa
So it was you
Right…???
What confuses you about the difference btn. credit and debit? I can sorta see why you'd want a credit card to boost your credit rating, provided you were smart with it and there's the chargebacks etc. but generally I prefer the idea of debit cards…
Original post by Ishax
Debit card is where you can only spend money if there is money on the card.
Credit card is where you have an overdraft and you have to pay it back each month. Otherwise, you get charged interest until you pay it back.
Credit card is where you have an overdraft and you have to pay it back each month. Otherwise, you get charged interest until you pay it back.
Why do people use credit cards?
It never made sense, I just prefer to use my own money and manage it. Just seems easy to overspend with credit cards
Debit cards is where you use your own money. You need to be 11+ to get one.
Credit cards is where you borrow money however pay an APR back. Generally need to be 18+
Get both. Credit cards are good to build your credit score with so in the future if you get a mortgage it would be easier due to the fact they trust you with your money. Giving you a lower APR.
It is also useful, example being if you're on holiday and you miss your flight or something and you have no money, you can use your credit card until you pay them back.
However avoid using credit cards a lot due to the fact the APR does hit you hard on larger amounts. The longer you have one the lower APR you get from other credit cards and you also get higher credit limits.
Debit cards are self explanatory. You put money and you withdraw what you have unless you have an overdraft.
Credit cards is where you borrow money however pay an APR back. Generally need to be 18+
Get both. Credit cards are good to build your credit score with so in the future if you get a mortgage it would be easier due to the fact they trust you with your money. Giving you a lower APR.
It is also useful, example being if you're on holiday and you miss your flight or something and you have no money, you can use your credit card until you pay them back.
However avoid using credit cards a lot due to the fact the APR does hit you hard on larger amounts. The longer you have one the lower APR you get from other credit cards and you also get higher credit limits.
Debit cards are self explanatory. You put money and you withdraw what you have unless you have an overdraft.
Original post by Lord Samosa
Why do people use credit cards? It never made sense, I just prefer to use my own money and manage it. Just seems easy to overspend with credit cards
It never made sense, I just prefer to use my own money and manage it. Just seems easy to overspend with credit cardsRead my post above.
Original post by Lord Samosa
Why do people use credit cards? It never made sense, I just prefer to use my own money and manage it. Just seems easy to overspend with credit cards
It never made sense, I just prefer to use my own money and manage it. Just seems easy to overspend with credit cardsI do agree with you there, the only way I'd use a credit card is if I had a full time job so I can pay off monthly. I just have one debit card tbh and it's a student account lol. You can always check your balance on your phone to make sure you have enough balance etc, plus you get paid directly to your bank (if you have a job)
(edited 7 years ago)
Original post by Lord Samosa
Whats better? Debit or credit cards? Never understood credit cards
Spoiler
I have two debit cards six credit cards and a £3000 loan for a year. AMA!??
Original post by iEthan
Right…???
What confuses you about the difference btn. credit and debit? I can sorta see why you'd want a credit card to boost your credit rating, provided you were smart with it and there's the chargebacks etc. but generally I prefer the idea of debit cards…
What confuses you about the difference btn. credit and debit? I can sorta see why you'd want a credit card to boost your credit rating, provided you were smart with it and there's the chargebacks etc. but generally I prefer the idea of debit cards…
Smh
Original post by Drunq
Debit cards is where you use your own money. You need to be 11+ to get one.
Credit cards is where you borrow money however pay an APR back. Generally need to be 18+
Get both. Credit cards are good to build your credit score with so in the future if you get a mortgage it would be easier due to the fact they trust you with your money. Giving you a lower APR.
It is also useful, example being if you're on holiday and you miss your flight or something and you have no money, you can use your credit card until you pay them back.
However avoid using credit cards a lot due to the fact the APR does hit you hard on larger amounts. The longer you have one the lower APR you get from other credit cards and you also get higher credit limits.
Debit cards are self explanatory. You put money and you withdraw what you have unless you have an overdraft.
Credit cards is where you borrow money however pay an APR back. Generally need to be 18+
Get both. Credit cards are good to build your credit score with so in the future if you get a mortgage it would be easier due to the fact they trust you with your money. Giving you a lower APR.
It is also useful, example being if you're on holiday and you miss your flight or something and you have no money, you can use your credit card until you pay them back.
However avoid using credit cards a lot due to the fact the APR does hit you hard on larger amounts. The longer you have one the lower APR you get from other credit cards and you also get higher credit limits.
Debit cards are self explanatory. You put money and you withdraw what you have unless you have an overdraft.
Never knew about it helping you build your credit rating. I just hate idea of spending my own money though, although it helping you get a mortgage is probably worth it.
Original post by Lord Samosa
Smh
Never knew about it helping you build your credit rating. I just hate idea of spending my own money though, although it helping you get a mortgage is probably worth it.
Never knew about it helping you build your credit rating. I just hate idea of spending my own money though, although it helping you get a mortgage is probably worth it.
It honestly is really good if you are responsible!
Helps increase credit score - which makes it easier to get a mortgage / lower APR
things to avoid:
Going over your credit limit
Withdraw cash with a credit card (only use it for purchases online or shops)
Transferring money
Eat more than you can chew (spending more than you can afford)
Things to do:
Always pay the minimum payment
I use my credit card for the vast majority of day to day spending because I earn cashback/rewards and better consumer protection (ie; online purchases, extended warranties, etc). It can also boost your credit history if that is what you need/want.
I very rarely use my debit card other than for withdrawing cash (most credit cards will charge your interest on cash withdrawals) or where there are fees for using credit cards.
Credit cards can be a useful tool provided you live within your means and pay the entire monthly balance in full.
If you max out the credit card or fail to make your monthly payments you will get stung by interest and fees which can amount to £10s if not £100s depending upon how much you borrowed (and quickly erase any cashback or "rewards").
I very rarely use my debit card other than for withdrawing cash (most credit cards will charge your interest on cash withdrawals) or where there are fees for using credit cards.
Credit cards can be a useful tool provided you live within your means and pay the entire monthly balance in full.
If you max out the credit card or fail to make your monthly payments you will get stung by interest and fees which can amount to £10s if not £100s depending upon how much you borrowed (and quickly erase any cashback or "rewards").
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