Nobody should "borrow" from credit cards, either by over spending or cash advance. Credit cards should be used for convenience and free-creitit period.

Whenever you use your credit card, you are borrowing. If you do not pay it back, all hell breaks loose. I know that debit cards do not have the same as credit cards, but to a certain extent they do. US Banks offer rewards for those who use their debt as visa charges. I have recieved up to $15 and I cashed it in to my account quick as lightening.

When you say credit should be used for convenience, and free-credit period, that is only saying that it is "finance free" through a grace period. Nothing is free with a credit card, even if they have to catch you at the end of the year for an annual fee.

The advantage that debit cards have over credit cards is that you don't have to worry about closing statements as you do for credit cards. I have never use my credit cards when there's a one week difference until the closing date. I always want my credit cards to report a $0.00 balance and a $0 balance on my statement so I won't get hit with those high interest rates nowadays.

I totally disagreed with you. Nobody should "borrow" from credit cards, either by over spending or cash advance. Credit cards should be used for convenience and free-creitit period. A debit card has all the disadvantages of cash and none of the advantages of a credit card. Personally. I only carry cash and credit cards in my wallets - no debit card.

Hi Liowkc, there is a flip side to your assumtions. Credit is only better when you are establishing credit, but in order to pay credit it must come from the account of the debit card (The big house). Most credit companies do not allow you to pay credit with credit (unless there is a balance transfer going on). When you purchase with a debit card, you do not have to look over your shoulder and beat a deadline because the funds are gone and no finance, apr, min payments, interest, or bills will follow.

Debit charges are not incase-of-emergency's while credit is, so lets say that you went to Best Buy and charged that nice flat screen hdtv for $2k (and your card was $2200 limit) with an intention to pay it when your pay check arrives. Some unforsceen incident arised and you are going to have to use your paycheck to cover it. It will be ok with credit as long as you cover the min balance. You take your paycheck to take care of the incident, and now you are waiting for your next paycheck to pay off the tv. Well here comes the finance charges and so on.

If you was to go into the store and purchase that same tv with you debit card, and that same incident arised, you would then turn towards your credit card to pay the incident and knock it right back down with the paycheck that is comming up. There is no penalty from the debit unless you went over the limit and there is no finance charges etc.

I believe that it is smart and wise t use your debit more than credit because you get good practice on not using credit as much. Credit cards are not something you use rapidly or on a daily basis, it is to be used as a quick "borrow" issue and to be paid back immediatley or over time. Credit and debit is not to be treated the same, because if you use credit more than debit, then you are practicing to live beyond your means.
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Cliff, what's your interest rate on that card?

A credit card is better than a debit card; when you pay via debit card, your money is deducted immediately while a credit card will give you up to 55 days of free credit (of course you have to make full payment every month in order to enjoy the interest free holiday).

A credit card is a great instrument if yoiu are disciplined and keep your spending under control.

Cliff, what's your interest rate on that card?

I think the best to use a credit card is like a debit card. Basically, if you don't have the money to pay your balance in full that month, then just don't that buy it.

That is right. But right now, I have been paying down a balance on my Direct Rewards for a very expensive plane ticket that I bought. It will be paid off by the middle of next month. It hurts my utilization for a short period of time but at least I am demonstrating to HSBC that I can pay my debts above the minimum monthly payment and all CCC's appreciate that. Plus they are making a little finance charge cheddar off of me.

I think the best to use a credit card is like a debit card. Basically, if you don't have the money to pay your balance in full that month, then just don't that buy it.

Hi everyone

I am a newbie to the forum and couldn't help but notice that a large section of it is devoted to credit card. As a holder of more than 30 credit cards at one point or another, I believe that the following conditions must be fulfilled to optimize the usage of credit card.

a. Never pay annual fees except for one card. In my whole life, I had only paid once for my first Citibank Visa card when I was a freshman in a US college.

b. Never revolve credit. Pay in full and enjoy up to 55 days of free credit on your purchases. If you live beyond your means, use other means of cheaper credit.

c. Enjoy the freebies, special privileges and rewards program for some small savings but never pay for enrolment in such programs; the savings are usually not enough to cover the enrolemt fees.

Beware, credit cards can kill if not used with great care.

Good luck and try to live beneath your means.