Quote:
Originally Posted by fasternyou929
All points below assume since you know your budget, and you have the mental capacity to stay within your budget using a credit card just as you do using a debit card. If you're sharper than a marble, you meet this criteria.
1. Your debit card is linked DIRECTLY to YOUR money. If someone gets hold of it, the impact to you is much higher (locked account/missing funds) and lingers longer than it would with a CC (typical turn around is 24 hours to get a new CC and carry on like nothing happened).
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This to me is one of the biggest issues.
If money is tight, odds are you have a low balance in your account.
Anytime a "hold" is placed on your card (hotel room, rental car, etc.) your money is no longer accessible to you. You could actually be denied access to your own money or bounce a check even though the money is waiting there ready to pay it!
Also, the theft issues. While your liability is the same, it is a much bigger (and longer) battle to get your money back from the bank than the CC companies (personal experience).
Corey,
If your debit still pays rewards, they are one of the few. Most have eliminated them.
Some have started charging fees, others will follow suit.