Credit Cards vs. Debit Cards: When To Use Each

I’m guilty of using my debit card from PayPal more than I should.  It gives me 1% cash back and awards it about 45 days after most spends.  This makes for a pretty compelling reason to NOT use a credit card.   But there are times when a credit card is preferable to a debit card, because of the protections they offer and the delays they provide in when you need to have the money gratis spiele downloaden ohne anmeldung.

Hotels are the most obvious reason to use credit cards instead of debit cards.  A $35 a night hotel recently put a $500 hold on my card to cover the possibility that I destroyed their room while I was sleeping.  Because these holds can take a week to come off of the card my cross country trip that involved 6 hotels put about $2700 in holds on my card.   Not a big deal if you keep $10k in your bank account, but most American’s don’t have $3,000 laying around when they are taking an expensive vacation video facebook herunterladen iphone.

Credit card companies seem to have already factored some of this in to their limits and allow holds greater than the limit of the card.  Plus most credit card holders have more credit than they have available cash, so a card with a $15k limit will get you through this series of Hotel stays herunterladen.

Large electronics purchases may not be as obvious, but because many credit cards insure your purchases against theft and damage, you may save quite a bit of money by purchasing with your credit card.   I recently dropped a plasma television that was less than a month old.  Had I had insurance I’d have saved $2k right there which would cover a lot of interest writing programs for windows 7 for free.

Online purchases can go badly no matter how sure you are the site is legit.  Credit card companies are tenacious about online fraud, and are better about believing you when you say you didn’t order something.  Even leveraging their weight once a year can make up for any interest you accumulated by having a credit card in the first place canon bilder von kamera herunterladen.

For me the biggest thing that has happened with my debit card is having a restaurant add a few zeroes to my transaction.  When they accidentally charged my card $6349 instead of $63.49 even thought they “put it back” 5 minutes later they didn’t “batch” their credit cards for 4 days so the money was out of my account for that long and I incurred overdraft fees as a result.  Which Bank Of America was very reluctant to put back.  Had that been a Credit Card Company I’d have called them when my card stopped working said “yeah the restaurant dribbled there fingers call them” and they would have and I’d have gone on with my day youtube untertitel datei herunterladen.

So while Credit cards are in a lot of ways the devil, they are also friendly and anxious to have you keep using them, where as Debit card companies seem to assume that if I am using them that I can’t get credit so they treat me like dirt.  Except for PayPal which I have been very happy with google street view for free german.image