Credit Cards vs Debit Cards (What Should You Use?)

In this video, we look at the credit card vs debit card argument and whether you should consider using a credit card or a debit card for most of your spending. The use of credit cards has become more and more frequent among many people over the past few years while the use of debit cards as remained flat and the use of cash has declined. While some financial experts like Dave Ramsey argue that credit cards should never be used, here I talk about a few reasons why I disagree with this.

The credit card vs debit card debate starts with the fact that many people who use credit cards can find themselves in credit card debt that costs a lot in interest. This may be due to either relying too much on future income to make a credit card payment or because of overspending or other reasons. But if we can keep our credit card usage in check and treat our credit cards like debit cards or cash, then with a smart budget, I think that many people can use credit cards successfully to take advantage of their benefits.

Some of these credit card benefits include purchase protection, extended warranty protection, as well as the ability to earn credit card points or cash back, and a few other things as well! All of the information in this video should serve as a good guide for when to use a credit card, debit card, or cash.

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DISCLAIMER: I am not a financial advisor and the opinions in this video are my own. This video is for entertainment and educational purposes only, it is not financial advice. You must do your own research and should talk to professionals before making any financial decisions for yourself.

[markuss]

I pay off my credit card shortly after I charge it. I don't wait for the monthly bill.

[docsays]

Excellent info & very thorough explanation. Even when i was rebuilding I used a few prepaid cards with limited funds because I didn’t want use the debit card linked to my primary checking acct to reduce risk. Now I only use credit cards!

[anthonywilliams]

Looking at this video vs one of your latest videos is waaaayyyy different. You have music and everything. Keep up the fantastic work!! Because of you, I got the BILT card!! 💳

[MikeMaye]

Solid review Daniel ! So true, my CC literally replaces my debit as I don’t carry balances. As for fraudulent, it’s harder to get back your own funds than a fraudulent CC purchase. Luckily for me when it happened my bank could verify I was home in NY while charges were being made in Chicago. I was credited back that same day. I personally only use my debit to have a little cash on me every couple of weeks

[ChaseYokoyama]

It is so important to know the difference between the two. You did a very GREAT job explaining both of them. With that being said, I can't see a time where I never use credit cards again. They have become such a huge part of my life and we can get so much value from using them wisely. Imma keep watching ur videos so that I always stay on top of things :)

[gphysco]

My new strategy is, once a while I check my checking to make sure I have enough to cover my cc. It’s so easy to just swipe and use without checking if u have the funds. This is just my method of course everyone’s is different on how they keep in tabs on there cards. Once I don’t have much $ in my checking I try to make ends meet if possible

[Stonks]

I don’t even carry my debit card around anymore. Stays on my desk.

[ColemanBassett]

I can’t remember the last time I’ve used a debit card! That said, I do have a cash back debit card in case I need to make a very large purchase.

[UnconventionalMoney]

Here is the one thing I would say though against credit cards. Credit card companies often rely on people who are not financially ready to make payments on time. These people overspend and credit card companies are making billions of dollars a year in overdraft fees and because people fail to pay on time there’s a reason they’re making billions of dollars. It is like the casino they know some people are going to win by playing the system correctly that the majority of people lose and that’s why they keep doing it that is the one thing I would Say against credit cards is that for the every day person if they do not have control over their spending habits they should not have a credit card otherwise man you provide some top-notch great information

[Rudytanugula]

Great video! I have some video requests if you’re interested!
1. Chase vs Amex Trifecta
2. Climbing the credit card ladder as a beginner ( when to get what card to maximize your opportunity)
3. Maybe an intro video to options for beginners ?

[OtherKindsofMoney]

Really good tips. Credit Card interest hurts bad so it’s important to pay it off

[ohanthemoneydoctor]

Great video and presentation Danial 👍🏼

[rickrjw]

Learned a lot of these habits in my twenties & I haven't paid for a flight sense then. Great tips!

[eddiemurray]

Another great video you took a topic that a lot of credit card ppl may feel they know about and made entertaining nice job!

[JacobKustra]

Totally agree! Everyone needs to use credit cards instead of debit cards. Too much left on the table by not using them.

[FinancialFreedomMadeSimple]

Thanks Daniel for the profound explanation and sincere advice.

[jefff]

I only carry my debit card when I need to get cash out the atm and the off chance a place doesn't take amex/discover or master which has happened before believe it or not. Other than that my debit NEVER gets used.

[andBroke]

This is a great comparison of the two. I will say that some debit cards are catching up with the perks and rewards. Caleb Bale has a whole playlist trying out different reward debit cards.

[sjg]

I haven't used my Dr. card for years for the reasons you mentioned, not to mention, it's best to keep building credit and earning value while paying on time.

[anthonygardner]

As always, you explained things very clearly, and your advice was perfect - IF used wisely, credit cards are far better. Have a good week!