Seriously, why are credit cards so much more popular/common than debit cards? Isn't the concept of debit cards...

Seriously, why are credit cards so much more popular/common than debit cards? Isn't the concept of debit cards, where you're only able to pay with money you actually own, much more reasonable?

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Because capitalism calls for the existence of said horrendous credit cards.

How great could it be if you could offer people money they didn't have, and them charge them dubiously large fees and %charges for not paying it back in full soon enough?

You can essentially profit off of people who don't even have the money in the first place, and even though that sounds like a paradox, they're LEGALLY bound to pay you back! You can't lose!

Even if they choose the desperate option of getting a loan shark to pay off the loan/credit amount they owe YOU; YOU still get paid! Credit cards are the best!

>From their POV

For one insurance. All credit cards carry mandatory insurance against fraudulent use, and also goods not being delivered.

With a credit card, you can ask the issuer to reverse a transaction if the goods/services you paid for weren't delivered. You can't do this with a debit card.

Also, with a credit card you're only liable for a nominal amount (typically $50 or less) if your details are stolen and used to make unauthorised purchases (provided you report it as soon as you become aware). With a debit card you may be liable up to your account balance if the bank isn't feeling nice.

Then there's interest-free periods. Now this is really a scam at everyone's expense, but you may as well be on the right side of the scam. If you spend on your credit card and pay it off at the end of the interest-free period, you can invest the money and earn interest in the mean time.

Of course, there's no free ride. This is paid for by fees charged to the merchants by the credit card processing companies. But if the merchants aren't charging a fee for using a credit card (or offering a discount for paying cash), you may as well make the most of it.

Of course, running up debt on a credit card and paying ridiculous interest rates on it is stupid. There are lots of taxes on stupidity and this is just one of them.

>Because capitalism calls for the existence of said horrendous credit cards.

lol

ITT: Dumbfuck children who don't know anything about finance, but totally think they do.

vimeo.com/41152287

Wow the government and banks getting PAID TO HOLD YOUR MONEY IN SAFE PLACES AND LET YOU BUY A BIT MORE AT THE MOMENT FOR A FEE? BURN THEM! We shouldn't pay them for working, that would be crazy! Why not just make more money? That will work right?

Credit cards are crucial to improve your credit score. This is looked at to determine whether they can trust you to pay back a loan whether it be a car loan, or a mortgage. Credit is what builds businesses, you spend money you don't have in order to make more money.

Calling them horrendous is to further drive OP away from them.
I do this not because I suck at finance; but because the general population does in fact suck at finance and shouldn't be using credit cards at the first place. Faggot.

Credit card companies,like the banks, are all run by the Jews.

>For one insurance. All credit cards carry mandatory insurance against fraudulent use, and also goods not being delivered.
Debit cards have insurance
>You can't do this with a debit card.
Yes you can.I have reversed payments on various ebay purchases where i never received the item after 2 weeks
>With a debit card you may be liable up to your account balance if the bank isn't feeling nice.
False
My card was stolen in vegas and 4k had been charged on it fraudulently .They froze my account and reversed it after 3 days.I had to show them my plane ticket home for validation.

You're talking out your ass bud

Get a card that pays benifits, even if its 1%, its still free money.

Plebs use CCs to buy shit they don't need with money they don't have. These people suffer.

Responsible people use them merely as a convenient, secure payment vehicle which accrues rewards. They do so by always paying the balance in full every month. These people reap all the awards and never pay any interest or fees. This money ultimately comes from the aforementioned plebs.

Take the Citi Double Cash card, for example. If you are responsible, then everything you need to buy becomes 2% cheaper.

Nobody is forced to get a credit card. Just like a bank isnt forced to approve you for a housing loan if you have no credit history.

Thats not my point.Flat out lying about debit cards is

So as a person who doesn't wanna spend any money on stupid pointless shit, should one get a credit card?

CC aren't that bad as long as you have a head on your shoulders. Easy DON'T SPEND MONEY YOU DON'T HAVE. Fuck... I just use it them to get that sweet sweet cash back. It's literally free money, why would I use a debit card?

Do you buy groceries?
Get an Amex Blue Cash Everyday and your grocery bill will be reduced by 3%.

Do you even want to own a house/car?
You need that precious credit score to get in to the credit score industry

Time preference value of money.

It's better to have money now than later.

Actually you are. If you don't notice money missing until later you can be liable for the full amount.

nolo.com/legal-encyclopedia/unauthorized-credit-debit-card-charges-29654.html

And even on the off chance somebody does get approved for either of those, it'll be with a horrendous interest rate.

other reasons above are reasonable.

I ;pay off mine each month.

I get points for each purchase
can use as cash back, or remibursement for travel expenses.

It gets me discounts on gasoline thru supermarket loyalty points connected to card

using credit card strengthens my credit score.

all my purchases are covered against fraud, even higher protections than debit card.

I can buy stuff on Monday, and pay off within 30 days, no interest charges, with bonus points accruing.

I always pay off before end of month.

I get about 20000 points per year, about a $250 bonus cash back each year, absolutely no annual fees, never pay interest.

its convenient

What are you talking about? While opening a credit card causes a hard-inquiry which reduces your credit score temporarily, by responsibly using a credit card, you will increase your credit score in the medium- and long-term. Amex tends to give relatively high limits which allow you to have low utilization and further increase your credit score.

See, here's the logic a good chunk of people don't take advantage of.
Let's say I have to buy something that's say $20 worth. If I use cash/debt card to purchase the item, I will get the item and spent my money, nothing more. With credit cards, I purchase the item and get some type of reward for the purchase (be it cash back, travel points, rewards points, etc.) If I pay off my credit card the exact same day for the item, it is essentially using your debt card except getting benefits. If you are punctual with the payments and are careful, why wouldn't you do this method if it get a you rewards?
And it really doesn't take much to be this disciplined. With online apps, I can check what's on my bank accounts to make sure I'm not purchasing more than I can buy, i can check my balance of my credit card to keep the utilization low, and more than likely pay off my credit card online as well. Plus this builds credit super fast. If you get a no annual fee card, you would, in theory, be making money by spending money.
People just think credit cards are the boogeyman because of interest fees and high apr and they're fucking retarded.

>Then there's interest-free periods. Now this is really a scam at everyone's expense, but you may as well be on the right side of the scam. If you spend on your credit card and pay it off at the end of the interest-free period, you can invest the money and earn interest in the mean time.

So much this. I have the amazon prime visa signature rewards i use to pay for everything. I never spend more than i earn and pay my credit card off every month. pay ZERO interest, card is free with my amazon prime membership and get around $50-60 if free amazon credit each month just for spending what i normaly would spend money on anyways.

Make it work for you. Don't leave a balance and reap the rewards

Credit exists to enslave stupid people to debt.

Actually that's what banks made you believe to get more cash out of you.

That difference exists only in the US. In Europe or Asia, what people call credit cards are debit cards WITH insurance and refund available as any digital transaction is traceable. For an annual set subrciption we can also get the transactions debited 30 days after they're made at no charge.

Basically americunts are being fucked over by their banks and being happy about it. Remember that congress has set the maximum interest rate for loans to 981%, so if you borrow a dollar they can ask you to pay the back $1 + $9.81 interest, congratulations.

Where the fuck do you live with a maximum 981% interest rate?

The interac system in the US isn't as robust as here in Canada. We often use our debit card more than cash. For god sake, last time I was down in Washington, the guy at the gas station had a fucking visa imprint machine to take my card info... Might as well still be 1972 down there.

That's US law, it's the maximum interest rate they can charge, look it up.

It was passed 7-8 years ago, I remember Jon Stewart did a good number on this particular one.

I did look it up and got nothing. I think you're full of shit.

I think you found it and are too butthurt to admit it.

Sure, kid.

There you go son, that wasn't so hard.

Kek didn't pay credit card and now they don't even bother on calling

Nice George Carlin quote. The man did get to slip in a lot of sensible stuff in his shows.

Nigga I get 5% back on Amazon, shits so cash

just don't spend more than you have.. e z

Credit cards are much safer to use than debit cards. The laws governing credit cards guarantee you are not responsible for fraudulent charges or card theft in the US. Debit cards are much looser. You won't be charged extra either for using a credit card, Visa and Mastercard do not allow merchants to charge more.

Also think about what happens if your debit card is stolen or account compromised. All of your liquid cash is vulnerable. You will have no money in that account for however long it takes your bank to investigate.

With a credit card, even if it is stolen, you have not been charged or lost any money at all. Worst case, your credit card bill is due in the next month, which gives you at least that amount of time (technically 60 days AFTER the first bill with fraudulent charges) to dispute it, before you are liable.

You receive zero perks for using a debit card, no cash back or points. So why would you ever use the damn thing. It's beyond stupid, you are risking temporary loss of cash for no gain.

It's not like credit cards cost you anything either, if you pay off the statement balance in full, you are not charged interest. Why not reap the rewards of a credit card? That way you aren't subsidizing the rich: blogs.reuters.com/felix-salmon/2010/08/28/how-credit-cards-force-the-poor-to-subsidize-the-rich/

You said it. Most people are gown up brats who can't cope with getting what they want right away, even the idea of saving up to buy something has been thrown out the window.
I remember a conversation between a friend and his wife one evening, she wanted a new iphone (iphone 5 at the time, she had an iphone 4 that worked perfectly):
- Honey you got your actual phone 3 weeks ago, let's wait a bit and save up before you buy a new one.
- But I want it now, if I wait another one is gonna come out.
- Even better then, you'll get an even better phone for your money.
- That's stupid, I need the new one now, and I'll buy the new one then too !

Friend was 36 at the time, she's 2 years younger than him. I can't cope with that kind of mindset, if she were my wife I would've slapped the bitch.

And it's not just women either, although housewives spending their husband's paycheck and then borrowing to spend even more seems to be the most common situation.

But then why use a CREDIT card to use money that you already have.

They're rigging the game so that you can't pay everything on time by encouraging you to spend more so they can charge you with interests and all kinds of extra costs to "service the account".

^this^

because this Credit cards give rewards or points when you pay off the balance. I get between $500 - $600 a year in free stuff just for using my credit card for everything and it costs me nothing as long as i pay the statement balance at the end of the month. If i used my debit card I would get nothing.

Literally all you have to do is maintain the spending habits you would have with a debit card, it's not hard

In my country banks discourage the debit card owners.
I literally have to pay money for the card if i don't use it very actively, and to even get it I had to put quite a lot of money on account - compared to credit card where you only pay interest from your debt and can get it 20 minutes after coming to the bank.

I work for Chase with Sapphire. Most people want a cc because of status/exclusivity/deals. It usually falls under those categories. If you use the card responsibly (there's such a thing as debt on a debit card) then the card is responsible. What many people are too ignorant to learn is these cards are literally loans you pay back in a month if you don't want interest. You don't want 30 days of interest or more on $10000 worth of purchases? Don't spend the money. These companies may not be perfect but if you're too stupid to manage your money in the first place, then are they evil or are you just stupid for failing to plan?

>These companies may not be perfect but if you're too stupid to manage your money in the first place, then are they evil or are you just stupid for failing to plan?


Man hindsight is kicking me for not jumping on the Sapphire Reserve hype train when they were doing the 100k points offer. That was a steal.

because points and shit.
Just pay off in full and don't be a retard. You can get free tickets to Hawaii or some shit. I usually just get about $400 in visa prepaid debit cards every year.

Good rewards cards will give you airline miles or up to 2% cash back. Basically that money they're giving you from retards who are paying credit card interest in the anticipation that some day you too will pay.

Use CC to pay for pretty much everything. Just make sure you pay the entire balance and leave $0 owed when the bill comes (must be paid on time).

Watch credit score go up. I got it over 800 and I was at shit tier a year and a half ago after moving back to the USA.