The biggest reason NOT to use a credit card is the INTEREST TRAP! Get a rewards or interest EARNING debit card and if you use credit card(s) always pay them off at month’s end or don’t use them!
Credit in any situation is a bank’s trap – banks want you to screw up, they know most people will, they “bank” on it.
It’s a simple philosophy that keeps you out of debt and away from being subjugated to the banks – don’t buy stuff you don’t have money to pay for! (stupid)

WRONG. In order for debit card to receive zero liability protection, transaction MUST be processed through Visa or MC network. This can only happens when you select credit at PIN pad then swipe your debit/check card.

Problem is that most retailers (in-person purchase) configured their PIN pads so that it process debit/check card through bank’s network (Plus, Star, other logos on the back of your debit/check card). Retailers do this because bank’s network charges less interchange fees than Visa/MC network.

You got your money back because purchases are made online. Online retailers process all debit card through Visa/MC network to have assurance and speed up the process.

Remember, it MUST be processed through Visa or MC network in order to have zero liability protection. Banks and CUs are not obligated by law to cover fraud should it processed through its own network. It all depends on the bank and/or CU.

Take advantage of the “quarterly” 5% Rewards Program..you must sign up for these.
Note: Earn 5% on purchases for Travel (Jan thru Mar) & 5% on purchases for Grocery & Drug Stores for March 2010.

I especially like being able to use some of the Bonus money for Gift Cards, restaurants, etc. In fact, just bought new PC using these bucks!

While Mileage Cards are available, I have never used these.

2. When gas was $4 a gallon in CA, it was really easy to go over $50.

4. refer to answer 1.

5. The idea of missing cash out of my bank account and losing a few days of interest doesn’t excite me.

6. I’ve flown round trip to Shanghai and Seoul twice. I also stayed at a Westin hotel for 3 nights for free. That’s at least $3000 in benefits. My gas card deducts 5% of my gas bill every month. Only 1%?

7. Most people are not wealthy.

8. In addition to warranty benefits, my credit card has a loss/theft provision, which I’ve used twice. Once for a pair of sunglasses stolen at the beach and a digital camera. That’s around $500 in benefits. Which debit card offers this service?

I graduated college in ’06 and from the time I was a freshman, our bank gave every student a debit card with our college’s logo on the front.

Since then, this is the ONLY way I have ever known to really manage my money.

However, I am finding that my spending is beginning to get out of control, and I think that its hard to track because of the debit card.

So, that said. Can you PLEASE do an article on how to manage your money withOUT a debit card? I can’t find anything on the net…

2) You generally approve the amount the store is charging, so if 4.95 rings up as 495.00, you will be given a chance to catch it before approval.

3) I totally agree that renting a car on a debit card is a royal pain! I can do it, I do it often, but 50% of the time I have some hassle associated with it. Like: the company SAYS they take debit, but the individual branch or the guy behind the counter says they don’t, and 40 minutes of arguments ensue. Or: They put a $300 hold on the account that takes up to 2 weeks to clear. Etc. Huge pain.

But there’s caveats on how to do this. First of all, you gotta stick to a budget. STICK to it, don’t splurge too much. Secondly, PAY THE ENTIRE bill once it comes due. If you cannot do either caveats, you’re screwed.

If you use credit cards constantly, your cash sits in your bank account longer, amassing more interest earnings. With debit cards, you eat away at your cash a bit, thus earning less interest…

The effect of this gets more dramatic the higher the interest your earn.

The low interest rates paid nowadays sure suck and I don’t earn much nowadays. But play with your average earnings and spendings, assume 5% interest rates and you will see how much indirect money credit cards actually make you.

If this is already well known, I apologize. But I have to say, I never see anybody mention this nice fact about credit cards.

- Casey