questionsdo you prefer charge cards, debit cards or cash?

vote-for30vote-against
vote-for15vote-against

I prefer to use my cc. I earn percentage cash back. I pay it off every month, so I never use it more than I would spend anyways. I also have some store specific cards, which give me an extra discount(s) when used shopping at their store/website.

vote-for30vote-against

I have been on a campaign to educate all my friends about the differences between debit and credit when making purchases so now's my chance to help out the deals.woot community.

So what happens if there's a problem? This does happen. You can be double billed or the wrong amount gets processed -- I've seen it thousands of times. (I work in the financial industry). I would even see $100 billed as $1000 all the time.

If you use debit, the amount has already been taken out of your account possibly causing you to have a negative balance and incurring extra fees. If you use credit, you will catch it when you receive the statement and can dispute the error and not have to pay the portion that is in dispute. It can take several days to get your money back from a debit error but it really doesn't matter how long it takes for a credit card dispute because you do not pay it while it's in the dispute status.

vote-for10vote-against

Cash would be ideal for privacy, but puts one at risk of loss or theft locally.

I use a rewards credit card for most purchases. My daily use card is paid off in full, I just use it for convenience and cash back.

vote-for9vote-against

@cengland0: thanks for reminding everyone of the difference.

I have several bank accounts, and my daily use one is with Chase. Twice I have been billed in error due to automatic ACH problems with merchants. In each case Chase put the money back into my account immediately in a temp basis while the problem was resolved. Also in each case the merchants (2 different insurance companies) were cooperative. I have gotten v good customer service from Chase. The people seem to be in US based call centers so far.

vote-for6vote-against

I use my debit card mostly since my bank has a neat program called "BMIChange Jar" that is a special account that rewards using your debit card. They round up your purchase to the next dollar (which makes it easy to balance your account) and adds it to a separate savings account that currently pays 4.89% interest! I always go over by a penny when getting gas so that 99-cents goes into the "change jar"! Neat way to save, and the high interest pays me almost $3 a month with my current balance.

vote-for6vote-against

Cash is my always my preference, but for online purchases I use two cash back/rewards credit cards. I take out my spending money for the week in cash.

vote-for8vote-against

I used to use debit cards almost exclusively, but my thinking turned in to @cengland0's thinking. My debit/credit card number gets stolen about once every 5-6 months. The thief can easily drain my bank account. With a credit card, I just dispute the charge and don't physically lose the money.

vote-for6vote-against

I like my rewards earning credit cards, and I have gotten to a point where I have nearly enough self control to use it. I would rather use my debit card to avoid the temptation, but when you stop and think about how much money you spend on day to day living expenses, you are throwing away a very real amount of money by not earning cash back on it.

vote-for9vote-against

@cengland0: I'm glad I'm not the only one who understands the problems with debit cards. Yes, you (theoretically, at least) have nearly the same protections as credit cards. The big difference, though, is whose money it is, and how hard the processor is going to press to resolve the issue.

Example: I recently purchased a computer part which arrived missing one very small but critical item necessary for assembly. It has to go back. I purchased with Amex. Right now, whose money does the merchant have? Not mine, it is American Express' dough. If there is a huge to do, then Amex can involuntary take back the money from the merchant. Had I bought this with a debit card, the money would already be gone from the account. Eventually, I may get it back, but in the mean time the merchant has it.

vote-for3vote-against

I play the % back game whenever I can. Use an Amazon Chase card for Amazon and so forth. I do not wait until the end of the month. I pay them DAILY so I can keep watch of that cash outflow in near real-time. Waiting until the end of the month is a terrible idea, and can give a false sense of security lead to overspending.

vote-for2vote-against

As @sporadic mentioned I also use an Amazon Rewards card from Chase.

I pay in fullmonthly and I use EEBA to track all of my spending so I don't go over budget. I don't attach EEBA to any of my accounts I just put in my monthly income and then track all expenses whether made with cash, credit, or debit throughout the month. I will check my credit account online and bank account online about once a week to verify things are lining up and no odd expenses show up.

Also, since EEBA's free version allows up to 2 mobile devices to sync with the web view, both me and my wife are able to see each others purchases easily.

vote-for3vote-against

I use credit for everything, but I treat them like charge cards.
I pay them off completely every month, and never carry a balance.

Using credit cards I get rewards/points/cash/whatever, and protection when buying stuff online.