While unquestionably credit cards have greater safeguards than debit cards, simply paying off balances in full every month isn't always enough to keep your credit score high. Too much activity or too much credit utilized -- even when payment record is perfect -- can still lower your credit score.
Eh, I think sometimes people obsess about their credit score unnecessarily. I have fairly high credit limits (not of my doing, it was automatically given to me) and I spend a fairly low percentage of it every month, not to mention pay my bills in full on time. That's probably the most mental effort I've ever given to the entire proceedings, and I've had several instances where people checking my credit score (landlords, car loan) are surprised by how high my score is, especially given my age. (I think I got my first card at 18 too, so the long credit history is also a plus.)
Originally Posted by pixie cut
I know it's not perfect, it's probably mid-high 700's. But you don't need a 800+ score to get the lowest interest rates, I think over 700 will suffice.
Last edited by Anita18; 03-12-2011 at 02:49 AM.
Anita is correct, it is the percentage of credit charges you have vs. the amount available to you that is the determining factor.
In my experience the security on both is excellent. I've had my debit card flagged for fraud as well as my credit card - a many danger of debit cards being that retail clerks try to steal the card numbers and codes.
Originally Posted by mmscfdcsu
We like to try and pay with cash, but use debit on occasion. I really like the credit card for online purchases. That's where I feel like most fraud is likely to occur.
That's true. They can show that little lock all they want, but information transmitted on the internet is vulnerable. You regularly hear stories about information being compromised.
Originally Posted by Hannahclear
I can only say that a few years ago I bought two pairs of shoes, one with a debit card and one with a credit card. When they arrived, I didn't like them and returned both. The catalog co went out of business, so they weren't about to process my refunds. I got the credit card refund in a snap, but had to fight for months to get the debit refund. I did get it in the end.
I don't like carrying cash, so a debit card is a good compromise for me. Just be careful.