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I disagree. The convenience of directly debiting your checking account simply cannot be matched by a credit card. Fraud issues are overrated.
I've had my debit card hacked by a machine that looked like an POS system. I lost $1000 and BoA would not do anything even after I showed them I was somewhere else and that there had been a string of debit hackings.
Yes, debit card fraud is rare.
Yes, you are at the whim of your bank if fraud occurs. Remember, the bank already has your money anyway, so it's not like a CC.
If you just don't want to use a CC, fine, nobody can convince you otherwise. But, CC are superior to debit cards in every way. At the very least you do need to use credit regularly, but again, nobody can convince you otherwise if your mind is already made up.
I've had my debit card hacked by a machine that looked like an POS system. I lost $1000 and BoA would not do anything even after I showed them I was somewhere else and that there had been a string of debit hackings.
Yes, debit card fraud is rare.
Yes, you are at the whim of your bank if fraud occurs. Remember, the bank already has your money anyway, so it's not like a CC.
If you just don't want to use a CC, fine, nobody can convince you otherwise. But, CC are superior to debit cards in every way. At the very least you do need to use credit regularly, but again, nobody can convince you otherwise if your mind is already made up.
Then how come financial experts such as Suze Orman advocate cutting up all of your credit cards and switching exclusively to debit cards?
Then how come financial experts such as Suze Orman advocate cutting up all of your credit cards and switching exclusively to debit cards?
Quote:
Originally Posted by Petunia 100
Suze Orman is not a financial expert. She is a charismatic guru who sells a lot of books and has a TV show.
^ This. Orman gives really bad advice much of the time, but the advice isn't going to get you into financial trouble - just cost you. Besides, you are a CPA, you can crunch the numbers yourself. Does giving up 1-5% cash back cost you money or not? The only way you benefit from giving up 5% is if your impulse control is weak and having $20K in available credit would cause you to overspend or carry a balance.
Location: 23.7 million to 162 million miles North of Venus
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Many excellent comments by most posters , and, a couple of not so great comments by a poster or two.
I think the following two good posts pretty much sums it up....
Quote:
Originally Posted by Pitt Chick
We get it! You do not want to use credit.
So then don't complain when you credit score is lower than it could be, and when you get a less than great mortgage rate because you have not shown you can use CREDIT.
LOL!
I have seen first hand the messes people got into when their debit cards are compromised. Made me all the more convinced to NEVER get or use one.
I'm beginning to wonder IF the OP is actually thinking of getting a mortgage in the next 5 years or so, or, if the OP is just using a fictitious mortgage excuse as a back-handed way of creating yet another 'debit cards good, credit cards bad' debate. After all, someone who is actually thinking about getting a mortgage, who wants the best chance of not only getting a mortgage but also in getting the best possible rates, who posts in here to discover the best solutions to obtain his goal, would not be so quick to be dismissive of the helpful posts for the sole reason of defending his stance on why debit cards are better than credit cards.
Plus, the OP has obviously never bothered to do any research about the pitfalls of debit vs. credit, or the protection laws for either, if he can blithely say that "Fraud issues are overrated." when it comes to debit cards.
Quote:
Originally Posted by Lowexpectations
you must be trolling
There are already many credit card vs. debit card debates in this forum, why start a new debate thread?
Last edited by berdee; 09-09-2014 at 06:20 PM..
Reason: one word addition
^ This. Orman gives really bad advice much of the time, but the advice isn't going to get you into financial trouble - just cost you. Besides, you are a CPA, you can crunch the numbers yourself. Does giving up 1-5% cash back cost you money or not? The only way you benefit from giving up 5% is if your impulse control is weak and having $20K in available credit would cause you to overspend or carry a balance.
I am NOT a CPA. I'm a corporate tax accountant. There's a difference. I don't hold a CPA license, nor did I ever take the exam or anything. My god.
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, and, a couple of not so great comments by a poster or two.
