Turn on thread page Beta
    • Thread Starter
    Offline

    19
    ReputationRep:
    Whats better? Debit or credit cards? Never understood credit cards

    Spoiler:
    Show
    genuine question this time
    • Section Leader
    • Peer Support Volunteers
    • Clearing and Applications Advisor
    Offline

    21
    ReputationRep:
    Section Leader
    Peer Support Volunteers
    Clearing and Applications Advisor
    Debit… imo.


    Moved to money and finance.
    Offline

    20
    ReputationRep:
    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.
    • Thread Starter
    Offline

    19
    ReputationRep:
    (Original post by iEthan)
    Debit… imo.


    Moved to money and finance.
    So it was you
    • Section Leader
    • Peer Support Volunteers
    • Clearing and Applications Advisor
    Offline

    21
    ReputationRep:
    Section Leader
    Peer Support Volunteers
    Clearing and Applications Advisor
    (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…
    • Thread Starter
    Offline

    19
    ReputationRep:
    (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.
    Why do people use credit cards? :lol: It never made sense, I just prefer to use my own money and manage it. Just seems easy to overspend with credit cards
    Offline

    16
    ReputationRep:
    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.
    • Very Important Poster
    Offline

    19
    Very Important Poster
    They are different products. Better for what?
    A debit card is no good if you have no money.
    A credit card may charge you interest so think carefully before using i, especially if you have money.
    Offline

    16
    ReputationRep:
    (Original post by Lord Samosa)
    Why do people use credit cards? :lol: It never made sense, I just prefer to use my own money and manage it. Just seems easy to overspend with credit cards
    Read my post above.
    Offline

    20
    ReputationRep:
    (Original post by Lord Samosa)
    Why do people use credit cards? :lol: It never made sense, I just prefer to use my own money and manage it. Just seems easy to overspend with credit cards
    I 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)
    Offline

    3
    ReputationRep:
    (Original post by Lord Samosa)
    Whats better? Debit or credit cards? Never understood credit cards
    Spoiler:
    Show
    genuine question this time
    I have two debit cards six credit cards and a £3000 loan for a year. AMA!??
    • Thread Starter
    Offline

    19
    ReputationRep:
    (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…
    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.
    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.
    Offline

    16
    ReputationRep:
    (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.
    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
    • Very Important Poster
    Offline

    19
    Very Important Poster
    Probably already been mentioned, but in specific instances I would use a credit card for consumer purchases as theres much better consumer protection. In those situations its smarter to use a credit card.
    Offline

    20
    ReputationRep:
    I use a credit card for foreign transactions and consumer protection.

    Debit card for everything else.
    Offline

    17
    ReputationRep:
    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").
 
 
 
The home of Results and Clearing

1,196

people online now

1,567,000

students helped last year
Poll
Do you want your parents to be with you when you collect your A-level results?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.