Why would anyone responsible person use a debit card when the option to use a credit card is available?

Question

Sorry I wasn't clear, I said responsible. That infers that you are not racking up debt and that you pay all your bills when they become due. I never pay a cent in interest plus I get to keep my money in the bank for up to 30 extra days earning interest.

Of course I meant to say, "why would any responsible person", I know how to write and speak. It's called a writing error, but if you want to believe that I speak or write like that out of ignorance and don't know grammar, have at it, feel better?

Of course I meant to say, "why would any responsible person", I know how to write and speak. It's called a writing error, but if you want to believe that I speak or write like that out of ignorance and don't know grammar, have at it, feel better?

So my assumption was right, people in general, are not very responsible (or smart) when it comes to using debit versus credit. Also, they don't know what it means to be responsible.

So in the first 17 answers I see 3 as correct, 1 as non-committal, 1 is just wrong and insulting the rest are just wrong. A lot of misguided people out there, kind of scary.

Answer 1

I personally would never use my debit card for purchases(I only use it at ATMs), however many people arent aware of how real the problem of identity and credit card theft is these days. They probably use it out of convience and to make sure they spend what they can afford. HOWEVER if somebody steals your debit card number or you lose your card a thief can drain your ENTIRE BANK ACCOUNT. With credit cards they can only steal up to your credit limit and is much easier to get this money back. PLUS there are so many reward credit cards out there to get cash back. Unless you have no control and are paranoid about getting into debt you should always use a credit card over a debit card

Answer 2

When you use a debit card, the funds are immediately withdrawn from your account, so this is like paying with cash. When you use a debit card as "credit" the transaction does not post immediately and you run the risk of it posting against your account days later. This can make you think that your balance is higher than it really is and cause problems, maybe even overdrafts.

If you are just choosing between using a credit card and a debit card, then the answer is simple. Use a debit card if you have the cash in your account to cover it. If you don't and are reaching for the credit card...are you sure you have the cash to cover it later, plus interest?

Answer 3

The only real reason that I can think of that people would use a debit card rather than a credit card is.

1.) They dont know any better. You only have to pay interest if you dont pay the bill in full. There is also better protection forthe customer for credit cards.

2.) They have bad credit. You can still get a debit card with bad credit but you may not be able to get a credit card.

3.) It makes them feel like they wont overspend.

Answer 4

For me if I carry cash. I lose some. Carrying a debit card is a lot easier for me. (I never have lost a debit card). I still carry some cash.

Some people are not responsible using cash, credit, check, ach debit or a debit card.

Not all people are irresponsible in using a debit card if they use it wisely and keep good records.

In the US
If you use a debit card as a pin purchase you save the merchant money. If you use the debit card as a signature purchase you cost the merchant more money. A few banks charge a pin transaction fee. My bank does not charge a pin transaction fee yet.

To correct another poster.
There are protection for debit cards in the US. The key is to notify the bank faster.

Answer 5

1. With a debit card, you can't spend money you don't have. You won't go into debt, and be forced to go through consolidations and collection agencies and all of that terrible nonsense.
2. Debit card's don't charge you interest.

The only reason to use credit cards is if you KNOW you can pay them off in full at the end of the month, and you are getting some kind of reward like airline miles or something.

And as for your extra information, it is insulting. The desire to use cash (or debit) rather than credit doesn't make you irresponsible, it's just a choice. Besides, how much interest can that money earn in the bank for a month? 30 Cents? 50?

Answer 6

I just would like to add regarding the use of credit cards: One of mine has an 'extended warranty' for anything electronic that I purchase.
Also, if you are giving your house a facelift or adding on a room, by using a credit card, the home improvement store has a running tally of what you have spent and etc. I found this most benefical a few years back after my home was destroyed by fire.
It makes perfect sense to me to leave my money in the bank to draw interest and use a credit card and pay it off as soon as the statement arrives. I also agree that paying cash for my amenities helps keep the budget in check.
Good Question BTW!

Answer 7

my answer is because i was stupid i am 51 years old and have no credit history i payed for everything in cash or with my debit card that was a big mistake now i am trying to establish credit the bank said the only type of credit card i can get is a "secured card"with a 29.00 annual fee i put 400.00 of my own money and that is my spending limit. i don't agree with the way the system works.for years i have been paying gas electric water etc bills with automatic debit i think i am as credit worthy as the average person but the system says just because i used a debit card instead of a credit card you are not credit worthy which is not true but at 51 i just learned that that's the way the system works i think it is kind of a scam because merchants think you will spend more at their stores and banks make their money charging interest so they promote credit cards to young people hoping people will forget to pay on time so they can slap a high interest charge on them i heard bank of america was offering no fee credit cards to illegal imigrants and than i have to pay a 29.00 annual fee is that fair?

Answer 8

If you pay off the credit card completely at the end of each month, there is NO interest, and you would have to be a nut to use a debit card. So, use a credit card and don't carry any interest. Any other choice is financially irresponsible.

Answer 9

It seems that you are doing what is the most financially beneficial thing for you. However, not all people have a credit card in which they do not pay an interest rate.. Not all people have a bank account that pays them interest. Some people just prefer to pay cash. I guess what I am trying to say is that it is an individual thing. Everything is not for everybody.

Answer 10

In normal situations, there is no reason to use a debit card. You would use a debit card only if there is a special promo and the purchases are small. Promos such as Wamu's recent $1,000 daily drawings for using the debit card or BoA's keep your change matching for first 3 months.