Seriousness Debit Cards vs Credit Cards - Page 2

Andybaby · 05-01-2009, 11:38 AM

I have just started working on building my first credit card, it started at 300, now its 750, I always pay it off at the end of the month, and now that it has a limit over 300, I pull it out instead of my debit card.

fruad liability is the same on both my debit and credit cards, BUT, my credit card doubles the time of warrenties upto 2 years for products I buy. Plus having good credit in this world is important if you want to do anything from buy a new car, (or a washing Machine) to buying a house (to put that washing machine in)

tirsales · 05-02-2009, 02:31 AM

Quote:

Originally Posted by Andybaby

Plus having good credit in this world is important if you want to do anything from buy a new car, (or a washing Machine) to buying a house (to put that washing machine in)

Alternatively you could simply wait till you have the money ... I understand buying a house on credit - I dont understand this for cars or washing machines...

Andybaby · 05-02-2009, 02:59 AM

because that's the way it runs. the world runs on credit, you don't have to play the game. but if you do, and you make good choices about credit you can live better.

and here is why you would buy a car on credit.

It costs $81 a month per person to buy a Monthly Metro card in NYC, Lets say 2 people living together, 160, Now a car Might be $200 a month Under a Lease, you are still gonna be paying in the long or short run, if you buy now, you can put that 160 buck a month expense into the new car and effectivly save about 2000 a year, for the 3 years of the lease, that's 6000 for buing the car on credit, about 1/3rd the price of the car.

so now you've got your car for 3 years already, and you didn't spend 6000 bucks on metro cards while you were still saving up to buy the car.

tirsales · 05-02-2009, 03:10 AM

Quote:

Originally Posted by Andybaby

because that's the way it runs. the world runs on credit

It does not - but thats a discussion we better be arguing in the "Cultural differences between Europe and US" thread.

Quote:

so now you've got your car for 3 years already, and you didn't spend 6000 bucks on metro cards while you were still saving up to buy the car.

Oh you forgot nearly all costs of a car (gas, tax, insurances, service, etc), you forgot the risk that a car can have an accident or get stolen, you forgot that TWO people will share ONE car, etc
Granted - if you have the money to pay for the car (e.g. a debit with the total sum needed to pay the car including interests) a credit might be less expensive then paying "up front", the same might be true for a 100% secure income (e.g. a secure monthly annuity), etc - but in many cases it will simply increase you risk (dont believe me? Take a look at the momentary crisis (e.g. credit card crisis in the US)).
A washing machine is a very good example - more and more people in Germany are starting to buy relatively cheap electronics like this via payment by installments (I hope its the correct term - you pay a monthly sum until you have paid for the complete sum) - Its the single most common way into (private) bankruptcy.

Andybaby · 05-02-2009, 03:29 AM

two people sharing one car is not an Impossibility, especially in my circumstances currently.

the associated costs with having a car are still there later anyway, but the cost of public transportation is just as High, such as having to take Taxis, or having to travel further than the city limits, Or even just living in long island, than for 2 people it would cost $150 Each for a monthly pass on the Lirr, and then you need metrocards on top of it. not to mention the time spent wasted traveling, for a 45 minute car trip could take as much as 3 hours by public transportation. now its $450 a month in public transport, now its most defiantly economically feasible.

the problem isn't credit in itself, its irresponsible users. a responsible person can use credit effectively to get ahead in life. but the choice is yours whether or not you want to use credit. no ones forcing you too.

tirsales · 05-02-2009, 04:12 AM

Quote:

Originally Posted by Andybaby

two people sharing one car is not an Impossibility, especially in my circumstances currently.

This is agreed. My girlfriend and I are sharing one car - its definitely possible.
And I surely dont wanted to state that "there never was a reason to buy a car on credit" - a friend of mine depends on his car for his job. On could say: no car, no job.
Well - in a stupid accident his car got broken - but he didnt have enough money to buy a car. So he got a credit and bought the cheapest reasonable car he could found - the alternative would have been loosing his job, and I think we agree that a (payable) credit is better then "no job"..

Quote:

now its $450 a month in public transport, now its most defiantly economically feasible.

Whoa, the public transport is expensive in the US... In Germany public transport (inside a city) is (in most cases) less expensive then the gas alone.

Quote:

the problem isn't credit in itself, its irresponsible users. a responsible person can use credit effectively to get ahead in life. but the choice is yours whether or not you want to use credit. no ones forcing you too.

There I agree with you. I just believe that many credit users are not responsible with their credits - and sometimes its hard to resist the urge to buy something "on credit" (you really want to have it, you surely can pay it back afterwards") - w/o really thinking it through. And thus I believe one should consider a credit really, really good - and after that, reconsider it.

wodin · 05-02-2009, 02:52 PM

Again:

Quote:

Originally Posted by wodin

My debit card is also a credit card, I can use it either way. If I specify credit, I sign the receipt, and if I specify debit I enter my PIN.

When I use it as a credit card, my online balance shows X dollars in my account with x minus the credit card purchase available, and if I drill down on that it shows the purchase pending. In other words it doesn't come out of my account right away, it usually takes a day or two.

So here's the question(s):

If I use it in credit mode, do I get all the same guarantees as any other credit card? If so, why would I ever want to use it in debit mode?

Does anyone know if there is a difference?

Xenophon · 05-02-2009, 09:50 PM

I don't know how the law runs in other states, but here in PA a Debit card and a credit card are legally quite different animals. Even when used in credit mode, the debit card has completely different legal protections. You have some protection with a debit card, but not nearly as much as with a "real" credit card.

Your mileage may vary, other states may have different laws, and I Am Not A Lawyer.

Xenophon

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05-01-2009, 11:38 AM	#16
Andybaby Wizard Posts: 1,279 Karma: 1002683 Join Date: Nov 2008 Location: New York Device: PRS-700	I have just started working on building my first credit card, it started at 300, now its 750, I always pay it off at the end of the month, and now that it has a limit over 300, I pull it out instead of my debit card. fruad liability is the same on both my debit and credit cards, BUT, my credit card doubles the time of warrenties upto 2 years for products I buy. Plus having good credit in this world is important if you want to do anything from buy a new car, (or a washing Machine) to buying a house (to put that washing machine in)

05-02-2009, 02:59 AM	#18
Andybaby Wizard Posts: 1,279 Karma: 1002683 Join Date: Nov 2008 Location: New York Device: PRS-700	because that's the way it runs. the world runs on credit, you don't have to play the game. but if you do, and you make good choices about credit you can live better. and here is why you would buy a car on credit. It costs $81 a month per person to buy a Monthly Metro card in NYC, Lets say 2 people living together, 160, Now a car Might be $200 a month Under a Lease, you are still gonna be paying in the long or short run, if you buy now, you can put that 160 buck a month expense into the new car and effectivly save about 2000 a year, for the 3 years of the lease, that's 6000 for buing the car on credit, about 1/3rd the price of the car. so now you've got your car for 3 years already, and you didn't spend 6000 bucks on metro cards while you were still saving up to buy the car.

05-02-2009, 03:29 AM	#20
Andybaby Wizard Posts: 1,279 Karma: 1002683 Join Date: Nov 2008 Location: New York Device: PRS-700	two people sharing one car is not an Impossibility, especially in my circumstances currently. the associated costs with having a car are still there later anyway, but the cost of public transportation is just as High, such as having to take Taxis, or having to travel further than the city limits, Or even just living in long island, than for 2 people it would cost $150 Each for a monthly pass on the Lirr, and then you need metrocards on top of it. not to mention the time spent wasted traveling, for a 45 minute car trip could take as much as 3 hours by public transportation. now its $450 a month in public transport, now its most defiantly economically feasible. the problem isn't credit in itself, its irresponsible users. a responsible person can use credit effectively to get ahead in life. but the choice is yours whether or not you want to use credit. no ones forcing you too.

05-02-2009, 09:50 PM	#23
Xenophon curmudgeon Posts: 1,487 Karma: 5748190 Join Date: Jun 2006 Location: Redwood City, CA USA Device: Kobo Aura HD, (ex)nook, (ex)PRS-700, (ex)PRS-500	I don't know how the law runs in other states, but here in PA a Debit card and a credit card are legally quite different animals. Even when used in credit mode, the debit card has completely different legal protections. You have some protection with a debit card, but not nearly as much as with a "real" credit card. Your mileage may vary, other states may have different laws, and I Am Not A Lawyer. Xenophon

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