Should I use credit or debit?

Question

I have a Visa Checkcard from National City Bank. I usually select credit when i use it unless i want money back. What difference does it make as to whether i use it as a credit or debit card? Does one or the other have a fee? (I'm 17 and the account branches off of my mom's so I dont really know much about it)

Answer 1

debit comes out of the account immediately, credit can take a couple of days to actually deduct from your account.  also, i can only use my card as debit 6 times in one day, while credit is unlimited.  you might want to see if you have any limits like that.  but i like debit better because it posts to your account immediately, that way its always up to date.

Answer 2

I like keep all my money in saving account earning interest. I don't pay till very last day. Of course, if you miss the due day the credit interest is killer. I don't know how they calculate the interest but they charge me 7 dollar on 35 dollar of charge pass the due day.

I like use the credit because of interest earn.

I don't like use the debit because it is very easy for people to copy card and get the code. When you use debit card on strange machine.

Answer 3

Most credit cards have fees eventually. Use credit cards when you want to establish your credit rating and when you can't afford something.(Knowing you will pay it off) I've never used my debit card.

Answer 4

Some places do charge a nominal fee for using debit. I always use the credit option.

Answer 5

Use debit!  

Credit won't post to your account until a receipt is turned in by the merchant and they may have up to six months to do that.  If they're slow, you've forgotten all about it until you've overdrawn your account.  Also merchants often store up their receipts because it costs less to have a larger number processed at one time than to have several small bunches processed.  That means you could get a bunch of charges for the last 2 months from some store all post on the same day.  Even if you keep a check register with all your transactions, this is crazy hard to keep track of.  And just because the transaction is pending on your account doesn't mean it's going to post yet. Credit transactions (also known as pin-less) were designed to be used with credit cards and can wreak havoc on an unsuspecting checking account.

Debit transactions were made to be used with debit cards (aka check cards) and will post predictably in one to two business days.  No guessing or praying needed.

My advice is only use credit if it's the only option.

Answer 6

Debit cards are a boon for the bank and dangerous for YOU compared to credit cards. It has to do with the type of transaction and when it happens in real time. A credit card is a loan to make a purchase. The bank extends the credit to you and the merchant gets the money minus a fee paid by the merchant, not you. You have at least 25 days before the bill comes due and has to be paid. IF you PAY IN FULL, there is NO INTEREST or fee charged! Your money has sat in your saving account for anywhere from 25 to 55 days. YOU make interest off the money until you pay the bill. A debit card is like an electronic check, it comes out of your checking account almost immediately, which means the bank now has use of your money without any delay. AND, with a debit card, you can overdraw your account with NO warning, which nets the bank fees and penalties, which means even MORE money for the bank. Can you see now why banks LOVE people who use debit cards instead of credit cards? As long as you pay your credit card in full by the due date, you pay NOTHING, NO fees, NO interest and have an interest free loan for a period of time! AND all the time the money sat in your account, it earned interest for YOU! By the way, with a credit card, you can call the bank and ask politely if they will waive the annual fee they usually charge and you can get them to do it! I have 3 credit cards and I was able to negotiate lower interest and NO annual fee on all of them, just by calling and ASKING. Warning: The problem with credit instead of debit is that you have to have some self-discipline and PAY IN FULL every month, or you WILL pay interest, and if your payment is late, they can jack up the interest and charge huge penalties. As long as you can pay in fuill and in time, then using credit is MUCH better than debit.

Answer 7

Depends on your account agreement. A bank can charge to use one versus the other, but usually don't. Usually what happens is that debit comes out automatically, and credit comes out at a later date, depending on when the store files for the money with Visa (anywhere from 1 day to whenever they get around to it). I use debit so it shows up automatically when I look at my account online. But that's just personal preference. The money all comes out of the same place.