Credit card vs debit card

[sda]

Hi,

Is using debit card more effective or is using credit card? What are the pros and cons for using debit card? What are the pros and cons for using credit card?

[something_else]

If you use a credit card properly it has lots of benefits.

• It increases your credit score
• often you get rewards in the form of air miles or cashback
• it can make it easier to manage your month to month finances since everything comes out of your bank account in one big sum
• you have significantly increased purchase protection since if you get scammed, card-swiped etc. you'll always get the money back

Using it properly just means paying it off in full every month and not letting any interest build up at all.

[Joshe]

Credit card is the way to go. Debit cards open you up to being scammed. If a CC becomes compromised, you don't have to worry about your bank account getting drained. 

That's the main reason to use a CC instead of debit. Plus, it boosts your credit score, which can come in handy. Just be sure to pay it off every month. 

[Natasha Tori Maru]

One other con that isn't listed (not sure if this applies in the US, I'm Australian) but a credit card is counted as a debt against you (regardless of balance) if you ever go for a bank loan.

[Staples]

It really depends on the bank and the country you're in. Just read your bank's credit card product page.

[Hojo]

You should get 1 credit card and keep it at 30 percent for a long time and then get a good credit score and then get a bunch of credit cards and you have a massive nest egg in case something unexpected happens.

Benefits of credit cards is like you have a special reserve of money if shit hits the fan, you can get like a 40 k line of credit. Meaning if you completely run out of money in your bank its not game over if something crazy happens.

Once you get good credit you can leave it empty and you just have good credit and a good line of credit

Debit is just money you have.

Edited 16 minutes ago by Hojo

[Schizophonia]

What's the difference ? 

[Schizophonia]

I just see credit cards are an american things, it basically doesn't exists in france.