Debit Card vs Credit Card - What Banks Don't Want YOU to Know

Which card do you use more? Debit Card or Credit Card?

STUFF I RECOMMEND!*
Investing Apps:

Credit Cards & Credit Score:

The main similarities/differences between a debit card and a credit card are:
1. Debit Cards take money right out of your bank account. Credit cards offer you a line of credit that you can buy against, without having the money on hand (not always good due to going into debt!).

2. Debit cards do still carry the same fraud and dispute privilege as a credit card.

Chapter's of Today's Video on Debit Card VS Credit Card:
00:00 Introduction
00:34 Debit Card Differences
00:55 Credit Card Differences
01:48 Use Credit Cards as a Debit Card?
02:30 How I Pay off My Credit Card Monthly
04:45 How to Use a Credit Card

You got this! Start treating your credit card like a debit card and enjoy the many benefits of your credit card!

Yours in Financial Success,
Bob

*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[jamesfudge]

Credit card is a great tool if you know how to be a responsible credit card owner.

[judyhooper]

When I first started using a credit card I kept a separate checkbook registry (back before I used computers) to do just that. That way I constantly knew how much I needed to keep in my bank to pay it off each month. Worked like a charm. It also let me know how much I was spending and kept me in check, so to speak.

[jcagy]

Im 84 and have only paid interest on any of my cards only ONE time, on purpose. I never had need to keep track of what I owed or balanced my check book in my life.

[sebastienlecmpte]

One more thing very important to know: if you pay everything in full at every month, you won't pay any interest on your PURCHASES. However, if you use your credit card for cash advances, you start paying money the very day you took out the cash advance, even if you repay it the very next day.

Keep that in mind!

[joeygee]

Short answer: any debt needs to be paid. If you don’t “need it” then don’t “swipe”.

[braskabani]

My credit score was stuck around 570 for like 5 years. After watching youtube videos and only using credit cards now is 751. Never use cash and barely use debit card.

[TheAvenger]

Using the credit card to pay every day purchases and paying the total balance each month is building your credit rating. Using your debit card for purchases is not helping your credit score. There is no reporting to the credit bureaus.

[ciannacoleman]

I built two expense trackers like this in my budget spreadsheet, one for all spending and one for what has actually come out of my account. I am currently using a combo of Debit and Credit due to not having my own credit card yet. It is great having the register so that I am not shocked when a chunk of money gets paid out lol

[DsChelI]

Wish I would have been taught this info at an earlier age to build better credit earlier. Now I’m in the process of getting it back up. Better late than never I suppose.

[jeremiaharyeetey]

I'm new to all these credits and debits. I'm trying so hard to grab all these informations which is kinda tough for me!!!

[mohammedalmuqwishi]

You're not smarter than banks. Agree, there're many benefits from using a credit card, but those banks are trying to play in term of consumer's psychology.

[Weesel]

Using the credit card saves check writing or tracking debits. A lot easier to balance and track one or two checks.

[tomgaynor]

You should use a credit card for all reservations and large ticket items in addition to the aforementioned. The reason is is that if you return the purchase it will take longer than you think to get your money refunded. So if it's done on your debit card that money will remain tied up in your bank account and not available to use.

[rondaallen]

if only i weren't so far behind! but i will try to start using this method.

[cynthiakeller]

TY! Very practical approaches to cards. I like the idea of using a cc to pay for everyday items and then getting cash back at the eom.

[markopetrovikk]

amazing video... im 15 and im trying to learn how to live fiancialy free and this really helped me out, thanks

[GabrielMartinez-sdpc]

I always laugh when people think they can out-smart a billion dollar corporation that’s almost sole life purpose in life is to make you spend more.

[jimeagle]

Dave Ramsy is right about credit cards!
The ruling class bankers want everyone to be in debt to the banks/ruling class and which card is most likely going to create more debt, debt or credit? Answer: credit

[ciannacoleman]

I love Ramsey but I agree about using a Credit Card and paying it off in full every month. There is also the added security of hackers not getting access to your bank account because there is that removal from it

[arigna]

What is it that the banks don’t want you to know? Maybe I missed it in the video…lol. I just saw the difference between a debit and credit card but that’s it. Well, besides the excel register, which you have to manually enter in transactions. Who has time? I haven’t kept a register in over 25 years.