Comments on: Why Credit Cards Rule Over the Inferior Debit Card

By: zoraker

zoraker — Mon, 01 Feb 2010 20:20:46 +0000

As to the morality claim, maybe you would feel better contemplating that owning, using, and paying off a credit card every month actually costs the credit card companies a lot of money because they aren’t getting the interest payments or other fees or charges, and have to make due only on the small fees they can charge the businesses to use the cards.

To some people it would feel like, “sticking it to the man”.

With Discover in particular it is very easy to realize $100 to $150 a year just by paying regular recurring payments with the card. You can also donate that money straight to charity from the website if you don’t want to dirty yourself with it.

By: LinkStuff For A Saturday Nov 14

LinkStuff For A Saturday Nov 14 — Tue, 05 Jan 2010 01:13:48 +0000

[...] Moolanomy had a great post wondering what exactly is so bad about credit cards and why are debit cards better? [...]

By: priya

priya — Mon, 21 Dec 2009 15:26:42 +0000

if the customer already has a credit card y does he need a debit card?

By: Craig Ford (Staff Writer)

Craig Ford (Staff Writer) — Sun, 22 Nov 2009 20:49:35 +0000

@financialsamurai – Great question. Now if I could only figure out if I’m walking into a trap … .
My first reaction – not if it is preditorial.
My second reaction – how does one know when something crosses the ‘preditorial’ line?
My third reaction – a lot of advertisers focus on teens and college students. Do college students just have more money than sense?
My fourth reaction – I really don’t know exactly what cc companies are doing on campuses so I’d better plead the fifth.

BTW, I am not trying to be as unhelpful as possible, but this is a complex issue.

By: Tina Fortune

Tina Fortune — Sun, 22 Nov 2009 13:03:04 +0000

I gave up the debit card a few years ago when I was dinged a $35 fee for the miscalculation of a penny! Yes, I accept that it was my fault. I could give a number of excuses as a single/divorced mom of 3 with way too much on her plate. Yet, it was indeed my error. I went to the cash envelope system and (gulp) yes credit cards. I now have paid them off and use the credit cards for insurance and to increase my scores since I BK’d after my divorce 5 years ago. I do not believe that the spending is the same for debit cards as it is for credit cards though. Spending a debit card is just like spending cash whereas we all know there is some leeway with the cc.

By: Weekend reading: All abroad

Weekend reading: All abroad — Sat, 21 Nov 2009 17:15:50 +0000

[...] Why credit cards rule over debit cards – Moolanomy [...]

By: Financial Samurai

Financial Samurai — Sat, 21 Nov 2009 03:43:07 +0000

Craig – What are your thoughts about some publishers who advertise cards to college students and such? Do you think that’s right?

By: Wednesday Trends in Credit Cards & Debt | Credit Karma Blog

Wednesday Trends in Credit Cards & Debt | Credit Karma Blog — Wed, 18 Nov 2009 19:17:55 +0000

[...] A boost for credit cards from Moolanomy Personal Finance’s blog on why credit cards rule over the inferior debit card. [...]

By: Craig Ford

Craig Ford — Mon, 16 Nov 2009 12:58:50 +0000

@Kristen – I have heard differing facts about the protection differences between credit and debit cards. My debit card paperwork says it offers zero liability protection and fraud monitoring (just like the credit card). As far as I understand both offer the same protection, but a debit card might take more time to get fradulent funds returned to your account. Anyone know the scoop? Either way it would be a credit card advantage.

@Terry – You are exactly right that you can rent a car with a debit card (thought you need to ask in advance as not all companies will allow it). As I shared in my post, some do not dislose that they have additional require insurance fees for debt card users.

@Matt – I agree morality is a paramount issue. Thanks for clearly sharing your position.

By: Terry

Terry — Mon, 16 Nov 2009 03:21:57 +0000

I’d add one more:

Dave Ramsey likes to point out that (contrary to what many believe) you CAN rent a car with a debit card.

BUT – and here’s a big problem – you need to have a fairly large checking balance to rent a car with a debit card, because the rental company places a hold on a big chunk of money. With a debit card, if your current balance isn’t that big, you can’t rent a car with a debit card.