Credit Cards > Debit Cards

[beenz]

Anybody tried the Apple Card?

It’s aight if you wanna have a no frills card for every day use. But it’s major benefits come when buying Apple products or shopping at the Apple store, so unless you’re doing that semi often there’s better daily drivers out there. Even a Citi Double Cash gets you 2% everywhere, 1% when you spend 1% when you pay it off, that card is basically the standard for most Cashback cards.

apple card is cool depending on the retailers. but the best thing about it is the built in app on your iphone that makes it so easy to track spending and pay it back.

also apple card gives you your cash back daily instead of monthly like most other credit cards. I try not to use any card that only pays 1% back. I can usually get 2% or greater depending on the card.

 

[invincible1914]

My Capital One debit card was hacked twice, and they gave me the money back.

Man, the Capital One credit card got that Enos app where you can make up virtual cards for every merchant. you got fraud protection and you don’t even have to actually use your card. The virtual cards are tied to just that one store. So if a person hacks the card you made to Spotify, they can only use if for Spotify. You can refuse the charge, cancel the card, make a new card without even talking to a person.

 

[astrologybrother]

@invincible1914


Thanks for the rep breh.

I can't rep yet on the site but I hope the coli fam can build wealth thru this financial knowledge.

 

[Macallik86]

Got so many points from last year man.

i got like $500 still I can use for whatever and mad points I'ma use to vacation with.

CC if you keep the balances low and pay it off quickly >>>>

One "duh" moment I read on Reddit was that you should almost never redeem points for anything other than a statement credit. It feels good, but it is a waste of money, especially if the purchase is expensive.

Basically, the reasoning is that if you pay w/ points, you don't get points for the purchase, but if you pay w/ the CC and then apply the statement credit, then you are getting points for your reward (although it feels less exciting psychologically)

 

[old_timer]

This is a small counter-point to keep in mind..

You know how credit unions,,, to encourage its members to "save for a rainy day"
Will offer 6% interest on first $1000 in savings account??
Concrete example: DCU (right now)

In recent past...
There were credit unions and certain banks that would pay 6% interest for first $25000 parked in your account
***As long as***
You did certain specific stuff to keep that account active..
Such as using debit card certain number of times per month, paying a bill, accepting a direct deposit

So some people would scratch their chin and decide..
$25000 @ 6% is $1500!!

well, I can buy my morning coffee for $2 five times each month
Pay the internet bill (set it on autopay)
And do a split direct deposit from my job ($50 to this account, the rest to my real account)
Which is also automated procedure

So you would see $1500/yr interest on your cash if you could remember to use their debit card 5x a month

While credit card rewards mostly "win",, there will be certain times in your life where the economy might favor rewards for using debit card
So keep an eye on both

 

[MustafaSTL]

Anybody tried the Apple Card?

I have it. Like the cash back directly to the Apple Cash Card. Built up over $600 in cash back so far since September. Wish there were more merchants that offer the 3% cash back. But for any Walgreens/Panera/Nike/Apple purchase, it’s 3% so I always use it for them. Plus I have a lot of Apple products and got big cash back for stuff like the new iPad Pro.

 

[Macallik86]

This is a small counter-point to keep in mind..

You know how credit unions,,, to encourage its members to "save for a rainy day"
Will offer 6% interest on first $1000 in savings account??
Concrete example: DCU (right now)

In recent past...
There were credit unions and certain banks that would pay 6% interest for first $25000 parked in your account
***As long as***
You did certain specific stuff to keep that account active..
Such as using debit card certain number of times per month, paying a bill, accepting a direct deposit

So some people would scratch their chin and decide..
$25000 @ 6% is $1500!!

well, I can buy my morning coffee for $2 five times each month
Pay the internet bill (set it on autopay)
And do a split direct deposit from my job ($50 to this account, the rest to my real account)
Which is also automated procedure

So you would see $1500/yr interest on your cash if you could remember to use their debit card 5x a month

While credit card rewards mostly "win",, there will be certain times in your life where the economy might favor rewards for using debit card
So keep an eye on both

I'm with DCU and do the $1,000 in savings thing. If we are getting granular though, I do also want to point out the opportunity cost with debit cards instead of credit cards. Credit Cards are giving you an interest free loan where you can technically invest your money immediately and withdraw the money at the end of the month to pay your bill after it has worked for you a little. That isn't possible with debit cards

 

[Big Blue]

What

Use credit card = pay interest

Use debit card = don't interest

I only use credit cards to keep my credit score up.

Look at this dumbass. I asked for the benefits that debit cards provide that are better than the benefits that credit cards have and he disappeared. Financially illiterate ass.

 

[CashmereThoughts]

Coli fools will say any foolish thing to push their narrative.

@ not knowing debit card checking accounts offer better rewards.

You owe it to yourself to become educated on this subject. I’m not even going to clown you but do better for yourself beloved.

 

[astrologybrother]

Questions:

How many cards are you guys rotating? I have two rn and trying to keep utilization low and pay it off each month, but some of you are talking about using your card for everything. I couldn’t do that without maxing mines out.

if I wanted to cancel one of my cards, what effect would that have on my credit?

Any good podcast relating to this stuff?

And while I’m here, I’m starting my own business soon, so any good podcast related to that?

Good question, the more cards you have the better the utilization rate will be if you stick with just using 1-2 of 4+ cards.

That will keep your credit score high.

There's plenty of info on the web like nerdwallet and YouTube.

Business credit is the holy grail.

1. You can purchase large ticket items due to a higher credit limit
2. Rack up more points
3. Doesn't show up on personal credit report. Capital one reports to personal, Chase, Citi, Amex report to business report.
4. Write offs.

 

[Serious]

Nah, B. That’s why you pay it off in full every month.

Is it better to pay it off full or just the statement balance?

 

[blockburna420]

Is it better to pay it off full or just the statement balance?

The more you pay it down the less interest you accure

 

[DrunkenNovice]

Is it better to pay it off full or just the statement balance?

Your statement balance will be your “full” payment for the previous month

If you current balance is higher than your statement balance that means you charged more after your statement closed for the month.

Ex: my closing date is the 23rd and my balance is $100

But I keep using my card for $100 more through the 31st.

On the 1st of the month I’ll get a statement that says my statement balance is $100, but my current balance is $200..

If you always pay your statement balance you won’t get charged interest

 

[Serious]

If you live within your means using a CC then you’ll never get into debt with it. There’s a lot of financially illiterate people with one tho who don’t know how to use them and then that’s where you hear stories about it from. Don’t spend more than you can afford and you’ll be straight, but when people get a CC that has a limit higher than their used to, instead of using it on simple shyt like gas or groceries they start thinking “fukk it I’m due for a vacay ” without having the capital to pay it off and then that’s where you run into problems.

I used to be draining in consumer debt as of a couple months ago. I’m cash flow positive.

I used to max out my credit cards and let them go to collections and my limit wasn’t even that much. At most $400.

Now that I’ve cleaned that up. I don’t over spend at all. Im actually way more conservative wit my purchases in general. I just like that fact that I can make a potentially bigger purchase or series of purchase then pay for it down the line. As opposed to right away from my direct funds

 

[Serious]

Keep your debit card attached to an account just for spending. My bank does that.

I'm financially insecure, don't like bills and will always prefer cash and debit cards to credit cards. I'm a simple, impoverished negro.

I just keep my spending as normal on credits and just automate the statements.