Written By: Peyton S.
When it comes to picking Credit cards and Debit cards many people will choose Credit cards but why? What is it about Credit cards that makes people choose it above Debit cards well that’s what I’m finding out right now.
Credit cards are issued by financial institutions like a bank and you get to borrow money from that institution that the cardholder will pay back with interest while a Debit card is your own money in card form so there is no interest you have to pay. There are 4 different kinds of Credit cards, Standard, Rewards, Secured Credit and Charge cards, each have a different purpose but all deal with the cash from the bank while there is only 1 type of Debit card but since it’s your money you have no interest or fees to pay.
Credit cards become defective after the warranty has expired but they still offer great protection from theft as long as they report in a timely manner with a liability of $50 and for Debit cards it’ll have to be reported in less than 48 hours or the liability will be $500. When a Debit card is stolen and is spent on stuff it cannot be returned unless the merchant is willing too and the holder can’t get the money back until an investigation is complete but Credit card holders have no such investigations and the money is immediately deducted back into your card.
So it is with great certainty that the Credit card is better than the Debit card because you can spend as much as you want as long as you pay it back and has protection against fraud and you won’t have to pay liability but it’s still nice to have a Debit card so you won’t pay for everything with a Credit card and get in debt.
Works Cited
Cussen, Mark P. “What's the Difference Between Credit Cards and Debit Cards?” Investopedia, Investopedia, 29 Jan. 2020, www.investopedia.com/articles/personal-finance/050214/credit-vs-debit-cards-which-better.asp.
While reading this blog I already know the diffrences between Credit and Debit Cards. What I didn't know is that there are four diffrent kinds of Credit Cards. My dad gave me a good talk on Credit Cards and how to be very careful with them. I feel like Debit Cards are better then Credit Cards because it's your money and you don't have to pay back what you borrowed from the credit card company or bank. Overall, Peyton this a great blog post and there are stuff I never knew about credit and debit cards.
ReplyDeleteIt's interesting to read about the 4 different types of credit cards! I agree, that a credit card has more protection and you can spend as much money as you want (as long as you pay it back of course). I never knew that if a debit card is reported less than 48, the liability will be $500! That's way more than a credit card. And it would be terrible if you couldn't return things that the thief bought because you have a debit card. The only nice thing about having a debit card is that there is nothing you need to pay back and you are dealing with your own money. Since you know that it is your own money, it might make you question if you really need the product or service.
ReplyDeleteI didn't know that there are 4 types of credit cards. Credit cards' protection from theft seems like one of the major pros compared to debit cards.
ReplyDeleteI think there are interesting differences between the two. While it may have seemed better to get debit card in the beginning because you don't have to pay interest and might be more aware of the amount of money you are spending so you don't go over your dollar amount, there is then the aspect of fraud. With the restrictions to be met if there is fraud on your debit card that are so strict and timely, it could be hard to get any of your money back; however with a credit card it is easier to fight against fraud. So overall, when comparing these two aspects, it is almost the smarter thing to pay a little extra everyone month in order to protect yourself from fraud.
ReplyDeleteGoing in, I already knew about how both credit cards and debit cards worked. And, while I didn't know about all four types of credit cards, there is no explanation for these four types of credit cards, which requires me to do external research that should have already been done.
ReplyDeleteOtherwise, this article was helpful, but a lot of the information in the article most people tend to already know. Furthermore, it's not exactly logical to say that one has an obvious advantage over the other, and is therefore better, different people use credit and debit cards interchangeably, when needed.
Before reading this article, I actually did not know they have different liability policies. Personally, I believe that one should always avoid going into debt, so things like credit cards should only be used if one knows that they can afford something, or if it is an emergency. After all, it is surprisingly easy to end up spending too much money and ending in debt.
ReplyDeleteAt the same time, fraudulent charges are very possible, my mom was even the victim of them once. Thankfully, purchases happened in Pewaukee, then Chicago, then in Pewaukee again ten minutes earlier, so it was easy to disprove, however not having any protection against fraudulent charges could be incredibly harmful. In all, I agree with Ryan H. above that it depends on the situation, and that the cards can be used interchangably when or if needed.
This was a very informative article for me. I didn't know that there were four types of credit cards before reading this. I agree with you that a credit card has more protection and that it is nice that you can spend as much money as you want. However that might be a problem for some people who don't know how to control their spending. You just have to make sure to pay it back! I think debit cards are nice as well because you don't have to pay any money back unless you spend more than you have and get overdraft fees. Overall, good job with the article Peyton!
ReplyDeleteI opened up a credit card a little while back and didn't really know the amazing benefits. However not everything that glitters is not gold. Credit cards should be used responsibly, and a lot of people fall into debt because of credit cards mis use ad misinformation. Building a good credit score via buying and repaying is not the only way. To be honest, it is actually one of the slowest ways to build your credit. Buying simple items on your credit, is actually a more riskier move because you risk yourself of theft and accidental over draft fees or unmarked payments. You should just use a debit card for those instances. Making a credit card not that "much" better.
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I already knew some information on credit cards and debit cards before reading this however I never knew there were 4 kinds of credit cards. Also, when you are debating to use credit vs debit cards, I believe that debit cards are better. This is because as you said, you are using your own money. When you use a debit card you would be more wise with how you spend your money and will probably not fall into debt as you would with credit cards because of the interest. The interest with the credit card is what a lot of people miss until it is too late.
ReplyDeleteYou did a good job explaining the differences between having a credit and debit hard and the pros and cons that each card carries. I think it makes sense on why people prefer credit cards, especially with there being so many option surrounded around it and the non-restrictive face it has.
ReplyDeleteBefore reading this I knew the difference between a debit and credit card but didn't know about the 4 kinds of credit cards. A lot of people don't understand the benefits and negatives of credit cards or debit cards and you did a good job explaining them. I like that you added in the differences in protection between debit and credit cards as well. Would you recommend that you start off with a debit card or a credit card?
ReplyDeleteI knew a lot about the differences prior to reading, however the bit about theft was new to me. I personally use a credit card for the majority of my purchases to build credit, thanks to your article I now know that it is the better option in the case of theft.
ReplyDeleteBefore reading this, I was unsure of the differences between the two cards. After reading this, I now have a better understanding of both cards and what they do for us.
ReplyDeleteI knew the difference between credit and debit cards but I feel like I know some more about credit cards now.I liked that you added pros and cons about both too.
ReplyDeleteIn all honesty, I have always been a little fuzzy about knowing the differences between debit and credit cards. I have my own debit card, so I know more about the functions on debit and how it is my own money in card form, but credit cards have always been something I've needed to gain more knowledge on. This article was very informative in displaying the differences between the two, and this is important to know seeing as we are now getting to an age where we will potentially have both of these options.
ReplyDeleteCredit card with eligibility criteria.
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