Don't use debit cards of any type unless you have no other choice. Use a credit card for everything you can.
Do you keep a credit card ? Or only a debit ?
- Thread starter traderwald
- Start date
Yes there is, by taking out other credit.
No credit (whether they are credit cards or other sources) no credit history.
The point some of us have been making, but you haven't gotten, is that credit of whatever kind has to be used or no credit history will be established and continued to be recorded.
You can use a debit card and select credit. Same difference.
A debit card with the Visa/MasterCard logo does not make it a credit card. It simply pulls your cash through the merchant network they have established. Your cash account is debited immediately, with no loan being granted.
Debit visa/mastercard have the same protections and depending upon the bank or offer...same rewards as a visa / mastercard. Yet, not all credit cards offer rewards.
Regardless...still no problems for me without a credit card.
wrbtrader
Yeah, when I show them my debit visa/mastercard...the store clerk ask me will it be debit or visa/mastercard.
If I say "debit"...purchase accepted. Card tap on the machine (pay pass...contactless). If I have a slip of the tongue and accidentally say "credit" for the exact same card at the same store a week later...the store purchase still accepted. Card tap on the machine (pay pass...contactless).
Money still deducted from my checking account "immediately"...no loan. Also, I get an email alert for the purchase plus rewards points...same insurance protection as a credit card.
I guess the machines has a way to determine regardless what I say or show the store clerk.
In contrast, I also do have a debit card (no visa/mastercard) attachment. I must stick it in the machine slot (no pay pass). Payment accepted.
wrbtrader
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The point I've been making that I believe has been missed...
I'm talking about "credit cards" and having established / maintaining "good credit rating" without "credit cards" after you've cut them up / burned them / put them in a shredder or whatever.
"Credit History" was thrown in there later in the discussion by someone.
Yet, I'm debt free now and will continue to do such as long as possible. Not having a "credit card" has not impacted my credit rating nor impacted my ability to make purchases.
What started was the semantics when someone specifically stated...you can not have good credit rating without a credit card.
That's not true.
My credit history has not been wiped out after going many years debt free and without a credit card. Credit cards are gone...they're dead (killed / burnt). Maybe in another 10 years if I'm still debt free, no activity...credit history its starts new again...don't know...not there yet.
Yet, bank still knows me and I have plenty of money in the account. They will still loan me money if I were to ask...but I won't ask.
P.S. Bank president and my kids on the same hockey team and go to the same private school.
wrbtrader
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You spoiled the fun with the info link
I'll now add to your link the Benefits of Debt Free.
https://www.moneycrashers.com/reasons-get-out-debt/
I like #4...better credit score, low interest on any futures loans and recently I scored a great deal on an international cell phone plan because I have great credit history and I'm debt free.
#14...sexy girlfriend loves it.
#17...being able to help others. Reminder, last year, in 2019 I co-signed on a 50k loan for a relative that could not secure the loan on her own. After she pays off her debt...I will help her how to go on in life as everyone else while debt free and without credit cards.
wrbtrader
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I was very clear before your message post...before you showed up. You just didn't read it...not a problem.
Direct link here @ https://www.elitetrader.com/et/thre...rd-or-only-a-debit.348553/page-3#post-5174972
Quick summary...no credit cards since 1995. Debt free since 1999.
I only use Debit visa/mastercards although its actually worded incorrectly. Should be Visa Debit / Mastercard Debit.
P.S. I think you're going to be responding to my other posts in other threads.
wrbtrader