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Lesser of two evils

Jogeephus

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The credit card thread got me to thinking, if you had to chose between a credit card and a debit card which would you choose? I know what I have chosen just want to be sure I chose right.
 

hillsdown

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Well, I don't remember hearing of anyone being held at gun point for their credit card. But it has gotten to the point that you cannot even do a bank transaction without a debit card.

If I won big in the lotto I would convert all my money to gold bars and dig a vault into the side of the hill on our property. I would then convert the bars to cash as I need them and pay with cash for everything ;). That way the banks couldn't steal all of your money from you . :help:
 

HerefordSire

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Jogeephus":24in6ejg said:
The credit card thread got me to thinking, if you had to chose between a credit card and a debit card which would you choose? I know what I have chosen just want to be sure I chose right.

Credit because it is possible to use the cash interest free for a month provided there are no annual charges and the limit is honored.

If you were a privacy nut like me, the debit would be the lesser of the two evils because there is no credit check or maintenance and less data is generated. Your risk here is the overdraft fees which were about $40B last year alone.


Both have fees taken out by the merchandiser to the card company when a transaction occurs.
 

Frankie

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Jogeephus":17cd7ymw said:
The credit card thread got me to thinking, if you had to chose between a credit card and a debit card which would you choose? I know what I have chosen just want to be sure I chose right.

I don't think either one of them is evil. I have a debit/ATM card. But I use the credit card when possible because of the points that I can use for cash, and the checkbook work involved with the debit card.
 

Jogeephus

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I'm not trying to say they are evil evil. I know in this day and time you can hardly do without one. I'm talking about risk and exposure. So let me try it this way.

If someone stole your identity and made a fictitious card which one would cause you the most damage and which one would be easier to fix? I may be wrong on this but with a debit card if someone steals your number and uses it does this money not come directly out of your checking account? If so, could this not lead you to write bad checks? With the bad checks would you not be charged penalties by the merchants? And lastly, will the bank make it a priority to fix the problem since it is not their money as they do when it is their money at stake in credit card transactions?
 

FarmGirl10

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If this is any help, I have both and never had any problems. My parents also have both, but have had their credit card number stolen and used in Florida.
 

Wewild

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We use a credit card for most everything. I guess they got a lot of info on us.

Never used a debit card since college.
 

msscamp

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Jogeephus":1ufmm7zc said:
If someone stole your identity and made a fictitious card which one would cause you the most damage and which one would be easier to fix?

They would both be equally difficult to fix. Regardless of the type of card, you would be in the position of having to prove that you are who you say you are, correcting the damage done by the imposter, and restoring your name. In the case of the credit card, you are liable for the charges until you can clear up the mess. In the case of a debit card, your funds are tied up until you can clear up the mess, you cannot open a new bank account because of the overdrafts on your existing account and, unless all of your bills are local and you can pay them in cash, you are in the position of not being able to pay your bills.

I may be wrong on this but with a debit card if someone steals your number and uses it does this money not come directly out of your checking account?

Yes.

If so, could this not lead you to write bad checks?

Absolutely.

With the bad checks would you not be charged penalties by the merchants?

Yes, and you will also be assessed overdraft charges by your bank.

And lastly, will the bank make it a priority to fix the problem since it is not their money as they do when it is their money at stake in credit card transactions?

Most banks have a policy of limiting your responsibility to the first $50.00, provided you notify them of fradulant charges within a certain amount of time. Most banks also do not make any differentiation between credit or debit cards when it comes to identity theft - or any other kind of theft, for that matter. You do need to understand that banks cannot 'fix' identity theft - that is a legal issue, and it is the job of law enforcement.
 

ga. prime

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Wewild":1a7492vm said:
We use a credit card for most everything. I guess they got a lot of info on us.
Never used a debit card since college.
Yeah, I use a credit card a lot and never use a debit card. I guess they have a lot of info on me too and I could not possibly care less. :lol2:
 

grannysoo

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Safety wise, you would probably be better using the credit card. It is much easier to dispute charges and have them removed from your credit card.

On the debit card, it can be done too, but you already have the funds removed from your account and that can lead to worlds of problems.
 

Frankie

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Jogeephus":2788d7bg said:
I'm not trying to say they are evil evil. I know in this day and time you can hardly do without one. I'm talking about risk and exposure. So let me try it this way.

If someone stole your identity and made a fictitious card which one would cause you the most damage and which one would be easier to fix? I may be wrong on this but with a debit card if someone steals your number and uses it does this money not come directly out of your checking account? If so, could this not lead you to write bad checks? With the bad checks would you not be charged penalties by the merchants? And lastly, will the bank make it a priority to fix the problem since it is not their money as they do when it is their money at stake in credit card transactions?

Your liability is limited to $50 with both the debit and credit cards. But your legal protection is better with the credit card. Good article here:

http://www.kiplinger.com/columns/fitnes ... 010808.htm

more:
http://www.usatoday.com/money/perfi/col ... ards_x.htm

A couple of months ago our credit card company issued us a new card, saying our account might have been compromised. We never had any strange charges show up on the old account though.

I don't spend a lot of time worrying about either one. I keep track of the cards, don't give out numbers, passwords or other private info unless I initiate the call, and deal with people I trust. I use the credit card for almost everything and the few times we've had a bad charge, the retailer or the credit card company has quickly corrected the problem. I do keep receipts and check them against the statement every month. I balance my checkbook every month, too. ;-)
 

aplusmnt

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Debit card only. Have gone away from anything related to credit except Farm Payment. Strictly Cash and Carry!
 

Jogeephus

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I have an attorney friend who told me to stay away from the debit cards since they are tied to your checking account. He was telling me how one person ended up writing a bunch of bad checks due to fraudulant card use by an identity thief. His client had written a bunch of little checks and the $25-$35 returned check fees totalled up in the hundreds of dollars and this person was responsible for them. This made me leary of the debit card.
 

1982vett

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Jogeephus":kzpk95j3 said:
I have an attorney friend who told me to stay away from the debit cards since they are tied to your checking account. He was telling me how one person ended up writing a bunch of bad checks due to fraudulant card use by an identity thief. His client had written a bunch of little checks and the $25-$35 returned check fees totalled up in the hundreds of dollars and this person was responsible for them. This made me leary of the debit card.

Just my opinion but I'm going to pay off a credit card bill when it comes in the mail anyway. It is just easier to maintain a lower balance in the checking account and keep cash flow in a money market account if I don't use a debit card.

In the case of a card fraud. I'd rather contest a charge than try to get a debit reversed. I do have a debit card, it is used only at my banks ATM the get cash, except once a few years ago I had a brain cramp and thought I was using the credit card. Didn't feel like canceling and redoing so I let it go thru. No ill effects just a little more observant of the card I'm using.
 

Jogeephus

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I thought these differences were worth considering but everyone has different situations.
 

GMN

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I prefer to write checks where I can, I do use the debit over a charge card, because I can get cash, like at walmart without any fees, I never use an ATM-never.

GMN
 

msscamp

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Jogeephus":1d1rhsp4 said:
The credit card thread got me to thinking, if you had to chose between a credit card and a debit card which would you choose? I know what I have chosen just want to be sure I chose right.

I think you have forgotten the 3rd choice - a Visa check card. It works like a debit card but, since it does not need the PIN, it goes through the credit card channels and that little detail vastly reduces the chances of an error in the network. I never, ever use a debit card, and I never will. A previous job showed me first hand just exactly what kind of damage a debit card can do, and I don't need that.
 

Lammie

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I thought I had lost my debit card once and called the bank. Turns out it was in the dryer, but that's another senior moment... Anyway, they were really good about going through the most recent charges and we found out that no one had used it. Cancelled that card and got me a new one. Of course, I had found the old one at that point. My husband hardly ever carries cash anymore. Just the debit card. That's good and bad...
 

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