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Posted by a.harringto8754 (MONEY FORUMS: 1, Answers: 0)
Asked on September 10, 2015 10:35 pm
I support LauraBill's view. From a fraud perspective, credit cards are much safer. Your maximum liability if it is used without your consent is $50, but you usually don't have to pay anything. If your debit card is hacked, the hacker has access to your bank account. The bank does not have to give you back all of your money, and they won't do it immediately. It can be a real hassle.
I second LauraBill's take on this if you are talking about safety meaning fraud, I always use credit cards because your liability is limited to $50, and usually you won't even pay that if it is used fraudulently. Debit cards, if hacked, expose your entire bank account, and the banks may not make you whole again, and if they do, it may take some time.
In some cases yes. Credit cards offer more fraud protection than debit cards. Credit cards are only safe if used responsibly though, meaning paid in full each month.
A debit card may be 'safer' for you if you are likely to abuse your credit card and buy things you really can't afford. You can't do that as easily with a debit card.
In addition to Keenan's response, I would like to add a different view from a fraud perspective. Since debit and credit cards are issued by banks (with the exception of AMEX), if both your debit and credit cards are from the same bank, typically the fraud protection can be similar. However, I personally would use a credit card over a debit card for any online payments. Should a card every be hacked, a debit card is directly linked to your checking account and thus any fraudulent charges are being directly deducted from your account. If your credit card is hacked, it is easier to call your bank and have the charges removed versus trying to get your money back.
Credit Cards can offer you the opportunity to increase your Credit score which will help when applying for a loan, buying a house, etc.. Most Credit Cards offer you 0% APR for the first few months which means you wont be charged interest for the outstanding monthly balances as long as you pay off the entire amount by the end of the introductory terms. This is where Credit Cards can become risky. If you do carry a balance you will be charged interest on the outstanding balance if you do not pay the entire amount off by the end of the month. Thus you are actually spending more on those items because they are now incurring interest. Debit cards will not carry over this interest. Debit cards will also only let you spend the money you currently have. Overall, Credit Cards offer you the chance to increase your Credit score as well as grant you access to more money (if your credit limit is high), but can cost you more if you do not pay off the total amount each month.
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