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  1. #21
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    Quote Originally Posted by Korru View Post
    1. Interest kills
    2. Those rewards are used to pull you into their scammy business
    Because you do not pay interest or fee's for using debit cards, whereas you have to pay for the privilage of using a credit card.

    The so called "rewards" offereds by credit cards companies are just there to trap you. I would rather be debt free and only spend what i can afford with a debit card.
    You realize that you only pay interest when carrying a balance, right?

    I see this ALL the time when people bring up credit cards. "But, YOU PAY INTEREST." Why, suddenly, when we are comparing debit cards to credit cards, people assume that using a credit card that you'll magically start going in debt and paying interest? That's not even what we are talking about:

    Debt card: Spend $300 in groceries, $80 phone bill, $400 in gas, $120 in restaurants; spend a total of $900 spread over a month with deductions from your account at every point of sale.
    Credit card: Spend $300 in groceries, $80 phone bill, $400 in gas, $120 in restaurants; spend a total of $900 spread over a month with a bill at the end of the month that you then have another month to pay. And you get 3% or whatever rewards back on the $900 ($27).

    See, no interest. You spend the same money, and actually get to spend it all at once at a point in the future, rather than chingchingching out of the account every time you buy something. You get miles or money back from the rewards programs.

    And you build your credit score, which you'll need when getting a car loan or a mortgage.

    If you are using a Debit Card, you should be using a Credit Card instead. There's no reason not to, unless you are an idiot who can't control your fucking spending when presented with a Credit Card. In which case, I have no advice for you except to stop being stupid with your money.

    The only time I use my ATM/Debit card is at a bank to get some cash out. Gas, clothes, food, oil changes, Netflix, Hulu, WoW, Amazon, Doctor bills, phone bill; it's all on my credit card. Gas, Electric, Car Payment, Mortgage Student Loan are all direct online withdrawls from my bank account. The only thing I write a check for is my Home Owner's Association bill every month, because I haven't tied to set up an e-check with my bank to pay for it.
    Last edited by Porcell; 2012-02-17 at 06:52 PM.

  2. #22
    The Unstoppable Force RICH816's Avatar
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    Quote Originally Posted by Porcell View Post
    You realize that you only pay interest when carrying a balance, right?

    I see this ALL the time when people bring up credit cards. "But, YOU PAY INTEREST." Why, suddenly, when we are comparing debit cards to credit cards, people assume that using a credit card that you'll magically start going in debt and paying interest? That's not even what we are talking about:

    Debt card: Spend $300 in groceries, $80 phone bill, $400 in gas, $120 in restaurants; spend a total of $900 spread over a month with deductions from your account at every point of sale.
    Credit card: Spend $300 in groceries, $80 phone bill, $400 in gas, $120 in restaurants; spend a total of $900 spread over a month with a bill at the end of the month that you then have another month to pay. And you get 3% or whatever rewards back on the $900 ($27).

    See, no interest. You spend the same money, and actually get to spend it all at once at a point in the future, rather than chingchingching out of the account every time you buy something. You get miles or money back from the rewards programs.

    And you build your credit score, which you'll need when getting a car loan or a mortgage.

    If you are using a Debit Card, you should be using a Credit Card instead. There's no reason not to, unless you are an idiot who can't control your fucking spending when presented with a Credit Card. In which case, I have no advice for you except to stop being stupid with your money.
    In the UK there is no charge when using your debit card to pay for things, there are only charges when withdrawing cash or you go overdrawn from your bank account.

  3. #23
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    Quote Originally Posted by Carazy View Post
    1) Americans heavily use debit cards as well. Also, there are ATMs just about everywhere even in rural areas.
    2) Americans heavily use online bill-pay. Most banks don't allow xferring of funds through email due to potential for fraud, but they have similar measurs in place.
    Chase and BofA both now allow money transfers via email now.

  4. #24
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    Quote Originally Posted by RICH1471 View Post
    In the UK there is no charge when using your debit card to pay for things, there are only charges when withdrawing cash or you go overdrawn from your bank account.
    And in the US there are no annual fees for most credit cards. ATM/Debit cards DO sometimes have a monthy fee from a bank (and I'd say they are much more common than monthy or annual fees for credit cards), and of course using an ATM card to get money from a non-bank ATM will cost a fee, but that's not really what we are talking about.

  5. #25
    Pit Lord aztr0's Avatar
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    I don't know if your friend lives in the country where stores do not accept cards. But if you are in a city, like I am, NYC. Debit cards are heavily used. And online banking is used on a consistent basis.

    ---------- Post added 2012-02-17 at 03:50 PM ----------

    Quote Originally Posted by Porcell View Post
    You realize that you only pay interest when carrying a balance, right? I see this ALL the time when people bring up credit cards. "But, YOU PAY INTEREST." Why, suddenly, when we are comparing debit cards to credit cards, people assume that using a credit card that you'll magically start going in debt and paying interest?
    Sure, you only pay interest when you carry a balance, but banks will charge a daily interest on your balance. Meaning, if you carry anything for the statement month even if you pay the full amount back before the due date, they will charge the accumulated interest for the days. It is not right that some banks do this, as I look at my father's CC and saw that he paid off last month's balance, but this month they charge him interest on that amount for last month. On the other hand for me, I haven't ran into any interest issues with my personal CC. I pay it off before the due date and never incur an interest fee. Different banks, different rules. My father already decided to pay it off just so he be done with that bank's CC, but as I said how do they expect people to keep their balance at 0 if they keep charging daily interests? Pisses me off, he'll have to call and bitch and some people at customer service.

  6. #26
    Herald of the Titans Darkfriend's Avatar
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    Quote Originally Posted by Korru View Post
    1. Interest kills
    2. Those rewards are used to pull you into their scammy business
    If u have the money to pay w/ debit just pay off at the end of every month. Good for credit score

  7. #27
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    Quote Originally Posted by RICH1471 View Post
    Because you do not pay interest or fee's for using debit cards, whereas you have to pay for the privilage of using a credit card.

    The so called "rewards" offereds by credit cards companies are just there to trap you. I would rather be debt free and only spend what i can afford with a debit card.
    They trap you if you don't have the discipline to regard credit as cash and pay the balance every month.

    I have earned upwards of $3,000 the last few years in credit card awards alone and haven't paid a cent in interest.

    And paying for a credit card is often not a bad choice. Which is the better "deal" in your mind. Paying $0.00 for a debit card and getting $0.00 in return, or spending $100/year for a rewards credit card which nets you $300-500 back?

    Again, it all depends on your discipline. Clearly if you carry a balance and dump money into interest payments you will not win out. But if you don't do that, you can very easily make sizable returns from credit cards.

  8. #28
    Quote Originally Posted by FathomFear View Post
    Again, it all depends on your discipline. Clearly if you carry a balance and dump money into interest payments you will not win out. But if you don't do that, you can very easily make sizable returns from credit cards.
    Agreed. I personally pay for almost everything on my credit card for three reasons. First, it provides easily accessible documentation for my purchases (important because I run a business and can write off many things). Second, it provides fraud protection. Third, rewards, rewards, rewards.

    I pay it off every month when I can, which is most of the time.

  9. #29
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    Quote Originally Posted by Porcell View Post
    See, no interest. You spend the same money, and actually get to spend it all at once at a point in the future, rather than chingchingching out of the account every time you buy something. You get miles or money back from the rewards programs.

    And you build your credit score, which you'll need when getting a car loan or a mortgage.

    If you are using a Debit Card, you should be using a Credit Card instead. There's no reason not to, unless you are an idiot who can't control your fucking spending when presented with a Credit Card. In which case, I have no advice for you except to stop being stupid with your money.
    Exactly. If you are old enough to apply and be accepted for a credit card, there is zero reason--and I mean zero reason--to use cash or debit. You're throwing away free money if you use cash or debit.

    Clearly, though, many people simply do not have the discipline nor maturity to use credit cards intelligently. They don't treat it like cash, overspend, get in debt, and end up paying interest.

    I have used credit cards exclusively for everything for a little over 15 years. I got my first one when I was 18. I only use debit or cash when credit is not accepted. If I need to buy a pack of chewing gum, I use credit. I buy my Tim's and Starbucks with credit.

    While I haven't done the math, I have no doubt that I've earned north of 8-10k in rewards alone (in the form of flights, hotel rooms, cashback, etc) over the last 10 years, and I've only ever paid interest twice when I accidentally missed payments. My FICO score is about 810 or so the last time I checked.

    But again, it all goes down to discipline. Please do continue to use cash and debit if you can't handle money and have a hard time regarding credit as cash. But if you think you can handle it, it's really the best choice.

  10. #30
    Not only do you get cashback with credit cards but some offer seasonal discounts on certain purchases. This month I'm getting 5% off on all gas purchases.

    I just pay off the full amount every month so I don't care what the interest rate is. I feel like a fool for using a checking card for many years. Also if fraudulent charges are made no money is actually taken from you. I try to explain this to everyone but some people just don't seem to get it.

  11. #31
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    Quote Originally Posted by belfpala View Post
    Agreed. I personally pay for almost everything on my credit card for three reasons. First, it provides easily accessible documentation for my purchases (important because I run a business and can write off many things). Second, it provides fraud protection. Third, rewards, rewards, rewards.

    I pay it off every month when I can, which is most of the time.
    That's a good point as well, and it's one of the reasons why I do pay for a few of my credit cards. While there are certainly some very nice free credit cards out there which offer flat cashback, most free credit cards don't offer much in the way of extended warranty coverage. I have a credit card which I pay $150/yr for. I probably earn around ~$500/yr in rewards, but the big added benefit for me is that it automatically adds one year of warranty onto anything I buy with it. I recently had a LCD monitor die on me which was passed the manufacturer's warranty, but due to the extra year from the credit card company I was able to get a brand new replacement.

  12. #32
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    Quote Originally Posted by aztr0 View Post
    Sure, you only pay interest when you carry a balance, [b]but banks will charge a daily interest on your balance.[b] Meaning, if you carry anything for the statement month even if you pay the full amount back before the due date, they will charge the accumulated interest for the days. It is not right that some banks do this...
    I don't know what nonsense you are talking about, but this is unheard of. Banks don't charge a daily interest on your balance. The only time this would ever be the case is if you did a cash advance, which I believe immediately starts accruing interest.

  13. #33
    United States:

    I never carry cash. Why should I? If a store doesn't take cash, there's another store selling the same crap or service less than 2 miles away. Screw those places.

    Cards have security... if i lose it, I'm not liable for one cent of the fraudulent charges.

    ---------- Post added 2012-02-17 at 05:46 PM ----------

    The only reason I ever took out cash for bills, was when I had a room mate in college. I'd just give him cash for the bills plus rent... That is, until I got a room mate with the same bank as me. Then I just transferred the money. Easy Peezy.

  14. #34
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    Quote Originally Posted by Carazy View Post
    1) Americans heavily use debit cards as well. Also, there are ATMs just about everywhere even in rural areas.
    2) Americans heavily use online bill-pay. Most banks don't allow xferring of funds through email due to potential for fraud, but they have similar measurs in place.
    American debit cards are different than Canadian debt cards.

    In the US a debit card is issued by Visa or Mastercard and can be used a debit OR credit. In Canada our debit cards are just that, debit. They only have access to money directly in our account and we have no way of using it as a credit card.

    This is just my understanding at least, i could be wrong.
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  15. #35
    Pandaren Monk skatblast's Avatar
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    Nah man we dont use online banking, we only created the internet.

    You guys are just to tech savvy for us americans. This post reminds me of a friend who moved to canada, and when he came back to visit he would bring his canadian friend. The first time he was in the U.S. he asked if we watched TV, not joking. IDC if he was 14 years old that's just stupid.

    He also thought Toronto had a bigger pop than New York City. I guess theres alot of isolation up there?
    Last edited by skatblast; 2012-02-18 at 03:13 AM.

  16. #36
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    Quote Originally Posted by skatblast View Post
    Nah man we dont use online banking, we only created the internet.

    You guys are just to tech savvy for us americans. This post reminds me of a friend who moved to canada, and when he came back to visit he would bring his canadian friend. The first time he was in the U.S. he asked if we watched TV, not joking. IDC if he was 14 years old that's just stupid.

    He also thought Toronto had a bigger pop than New York City. I guess theres alot of isolation up there?
    Technically online banking is made available through the web; a british invention.
    Last edited by Tyrianth; 2012-02-18 at 03:18 AM.
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  17. #37
    Quote Originally Posted by Tyrianth View Post
    Technically online banking is made available through the web; a british invention.
    The web was a multi-national creation. CERN, and all that, which (sorry to say) is partially in France, and entirely in French speaking parts of the world.

  18. #38
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    Quote Originally Posted by Porcell View Post
    I don't know what nonsense you are talking about, but this is unheard of. Banks don't charge a daily interest on your balance. The only time this would ever be the case is if you did a cash advance, which I believe immediately starts accruing interest.
    Just to reinforce cause there was some misinformation earlier on how credit cards charge interest, this man is correct. If you pay off the listed balance of a credit card when it is due you are not liable for the interest that would otherwise accrue. The interest may be tabulated daily, but is not charged unless you carry a balance forward to the next statement.*

    important note: Your balance typically stops accruing somewhere mid-month (assuming a payoff date of the 1st). So your balances can be(and often are) less than the actual amount you owe. This doesn't have anything to do with the interest though, as the 'carried over' amount will just be on the next months balance. What Porcell said is correct.

    * this may be different if an account is delinquent. I don't know as I have no experience with that.

  19. #39
    Warchief Clevername's Avatar
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    I prefer to deal in cash and refuse to do automatic withdrawls and transactions without looking them over myself... every time I've gone down that road they try and fuck me. I don't trust the automated systems

  20. #40
    I am a european, but I hate people paying in cash... IT TAKES TOO LONG!
    Every time you are in a hurry while shopping groceries, there is always an old lady in front of you in the line digging through their pouch for ages for coins.

    Also:

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