5 Reasons You Probably Shouldn’t Use a Debit Card

[bernard]

Not all plastic is created equal. From limited fraud protection to a lack of credit building, here's why you shouldn't use a debit card.

Debit vs. credit​

When opening a checking account, most banks or credit unions will give you a debit card. A debit card allows you to make purchases using the funds in your account without writing a check. And while you have the plastic option in your wallet, there are some important reasons why you shouldn’t use a debit card in many situations.

In the debit vs. credit card contest, credit cards typically perform best. Whether you swipe your credit card at a store or use a mobile wallet like Google Pay, credit cards offer robust fraud protections. And if credit cards are responsibly used and the balance is consistently paid off, users can benefit from credit card rewards programs as well (depending on the account type).

So what about debit cards? Perhaps you worry about going into debt or you prefer to always use cash. Maybe you feel more comfortable using funds directly from a checking account. While these may seem like legitimate reasons, it’s important to remember that not all plastic is the same. Read on to discover five reasons why you shouldn’t use a debit card.

5 Reasons You Probably Shouldn’t Use a Debit Card

From limited fraud protection to a lack of credit building to fewer rewards programs, here's why you shouldn't use a debit card.

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[TSU/BAMA]

I don't do debit cards. I guess I am one of the few people on Earth who don't use them. Hell, when I tell folks that I do not use debit cards, they look at me as if I have two horns and a tail.

 

[Olde Hornet]

I don't do debit cards. I guess I am one of the few people on Earth who don't use them. Hell, when I tell folks that I do not use debit cards, they look at me as if I have two horns and a tail.

You are not alone! I dont use them

 

[bernard]

I had reservations about using a debit card but used one anyway. After reading the article, I froze the debit card and started using a low-APR credit card.

 

[Stillabrave]

I am a CPA. I have a debit card for all my bank accounts. I don't use any of them. Mostly for the losses you could be held to.

I also have basically quit writing checks. Maybe now, a few per a month, mostly to myself, for record keeping purposes. Bad experience with the remote deposit for a check sent to someone. They continue to deposit the check and made copies. Bank tried to make it my fault even after one of the bankers looked at the check and said that it was obviously and easy to see that check was fraud (my signature was not even close).

 

[CEE DOG]

The problem is 90% of people aren't disciplined enough to use credit cards. What works for some will not work for others

 

[Stillabrave]

The problem is 90% of people aren't disciplined enough to use credit cards. What works for some will not work for others

I will agree with that.

Several years ago, I got a credit card for Lowes (with one that my sister could use) in my home town, for the use for repairs and remodeling, etc., for my Mom's house, my niece was staying in. I was helping my niece get on her feet, but did not want to leave card with her. However, after a few months, charges were hitting, by my sister, for use at her house. And she and her husband had could jobs, so I didn't see the need to charge, but maybe a cash flow, no big worries. However, after a few months, or me not receiving my money as I had paid the charge so as to avoid interest, I contacted my sister. I ask her, did she know how credit cards work, someone has to pay those charges......timely.
After a few more months, I cancelled the card that was in her name.

 

[TSU/BAMA]

@Stillabrave, I see you fell into the same trap that I did. I allowed a relative (my brother) to use my credit card. SMH!!! MISTAKE!!!!!

 

[Olde Hornet]

I charge just about everything, I am a point whore!

I rarely have cash on hand.

 

[Stillabrave]

I charge just about everything, I am a point whore!

I rarely have cash on hand.

Before Covid, I was mostly cash for daily and entertainment. After Covid, so many places I went to were cashless, I just gave up and stopped carrying more than enough cash to give someone if they me, to keep from pissing them off.

 

[CEE DOG]

Just make sure if yall buy a shot of cat to pay for it in cash. Keep a few small bills for a tip too.

 

[Stillabrave]

Just make sure if yall buy a shot of cat to pay for it in cash. Keep a few small bills for a tip too.

Single. All cat money kept in safe at home, since I am lucky not to have to share a home and stray cat got at the house. And no record, just in case I get caught up.

 

[Dr. Phreeze]

I starting to figure out the game and got my first AMEX card last week. A brotha started paying off the charges as soon as those transactions post. There's a YouTube video out there that tell you how to use the "AMEX Trifecta" such as the Platinum (charge card), Gold (charge card), and Blue Business Plus (the credit card) in tandem. Soon as I meet the agreement for the welcome bonuses on one card, I will work on the welcome bonus for the next one.
I strongly encourage people to know the difference between a charge card and a credit card.

Platinum is a luxury travel charge card that can help you gain 5x points for booking airfare, travel, and hotels. (I should've gotten the Gold first)
You have to pay off the balance in full every month or you have to you sent up a 3, 6, or 12 month plan to pay off the charge with the Plan It feature. There's a small fee for that feature

Gold is also a luxury travel charge card but you can get points (don't know how many) for dining and shopping at US Supermarkets. (This is great if you eat out a lot or need something from the grocery store)
You have to pay off the balance in full every month or you have to you sent up a 3, 6, or 12 month plan to pay off the charge with the Plan It feature. There's a small fee for that feature

Blue Business Plus Card is the credit card that can help get you points and statement credits to your account. You can use that one for gas, groceries, and other misc. stuff.
You can carry a balance with it but you should have a plan to pay it off.

I only had one hard pull on my credit on Experian and locked the other 2 which allowed the lender to only look at one bureau.
If you have one AMEX card, I would recommend waiting at least 3 to 6 months before getting another one but they will do a soft pull since you are already a member. Don't make any wild purchases with the charge card or they will flag your account for review. I've heard that it's a headache. Also, if you apply and accept an AMEX business card, the lender will make multiple pulls on your credit.

I added my wife as an authorized user to help get the points and statement credits. If you have a seed, get one for them but keep it away to help them build their credit.

What Is The Amex Trifecta?

Searching for the best travel rewards credit card can be a daunting task. After all, each card has unique benefits and bonus spending categories. It’s rare to find a single card that will let you earn ultra-high rewards everywhere you spend. But, you can maximize your earnings by using more than

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