[tirsales]

Continued from here

Originally Posted by TheLongshot

But when something goes wrong (i.e. your card gets stolen) it is easier to deal with a credit card than it is with debit cards, especially if the guy overdraws your bank account and now you have to argue fees with the bank. Also, a credit card company is more likely to warn you if they see unusual activity.

Originally Posted by Xenophon

I have a VISA debit-card too. But mostly I use my credit cards instead. The reason is twofold. First, the legal protections for credit card users are much more robust than for debit cards. There's no fundamental reason why it should be so; it's the current state of the law. I have much greater protection against fraud, theft, bad products, etc. when I use my credit card than with the debit card! Second, while the debit card allows easy access to my bank accounts, it doesn't provide side benefits (like cash-back on all purchases). A typical credit card gives at least 1% back -- and I'm happy to take the money!

These are very good reasons to choose a credit card in this system - but not a reason for starting this system.
What I meant is: What is the benefit of a credit based system vs a deposit based system? I personally do much prefer to spend only money I *own* then taking a credit (however shortlived it may be).

Not to mention there are usually more benefits that you can get with credit cards. I don't see too many debit cards that give you cash back or bonuses of some sort. As long as you pay it back every month, it can be a good deal.

This is different in Germany

In either case, it's only sensible to pay off the entire bill at the end of the month. Credit card interest rates are amazingly high; don't get caught behind that particular 8-ball unless you can't possibly avoid it! Taking a "loan" from your credit card company is nearly always a bad choice.

I agree.