Author Topic: Credit cards and Debit cards -- who chose their names? (Read 2688 times)

Matthew · « **on:** April 19, 2011, 03:35:39 PM »

A "credit" is a plus -- a "debit" is a minus.

How come credit cards, which put us in debt, are called "credit cards", as if we're spending some kind of overage we have set aside?
Meanwhile, "debit cards" sound bad -- a debit is a negative on your balance sheet. Debit and Debt come from the same Latin word. Yet when you use a Debit Card, you're actually paying with money you already have.

Do you think it's a coincidence that those names were chosen? I think not.

Lybus · « **Reply #1 on:** April 19, 2011, 03:44:06 PM »

Sounds pretty cut and dry from that reasoning.

I hope I don't have to own a credit card.

Telesphorus · « **Reply #2 on:** April 19, 2011, 03:47:06 PM »

When you use a credit card you are being extended credit, when you use a debit card you are debiting your account.

It's a good thing to be against usury, but credit cards are better than debit cards.

My mother had a debit card swiped once - if someone steals directly from your bank account it's harder to get your money back.

We live in a society where borrowing money and agreeing to pay interest is a necessary evil for most people. Right now people who are paying down their debts on the rapidly depreciating dollar are generally making a mistake.

Telesphorus · « **Reply #3 on:** April 19, 2011, 03:47:47 PM »

Quote from: Lybus

Sounds pretty cut and dry from that reasoning.

I hope I don't have to own a credit card.

You should get one. What you do with it is up to you. But not having one is not a good financial decision.

Lybus · « **Reply #4 on:** April 19, 2011, 03:55:23 PM »

Quote from: Telesphorus

Quote from: Lybus
Sounds pretty cut and dry from that reasoning.

I hope I don't have to own a credit card.

You should get one. What you do with it is up to you. But not having one is not a good financial decision.

How so?

Telesphorus · « **Reply #5 on:** April 19, 2011, 04:00:40 PM »

Quote from: Lybus

Quote from: Telesphorus
Quote from: Lybus
Sounds pretty cut and dry from that reasoning.

I hope I don't have to own a credit card.

You should get one. What you do with it is up to you. But not having one is not a good financial decision.

How so?

If you never get one you won't have a credit history. If you should ever be in a situation where you would need to borrow money you will have a much more difficult time.

Catholic Samurai · « **Reply #6 on:** April 19, 2011, 07:01:11 PM »

Quote from: Telesphorus

When you use a credit card you are being extended credit, when you use a debit card you are debiting your account.

It's a good thing to be against usury, but credit cards are better than debit cards.

My mother had a debit card swiped once - if someone steals directly from your bank account it's harder to get your money back.

We live in a society where borrowing money and agreeing to pay interest is a necessary evil for most people. Right now people who are paying down their debts on the rapidly depreciating dollar are generally making a mistake.

That's why the money you spend using the debit card should be in a separate account.

Credit cards do have the advantage of allowing you to file charge-backs in the case you are ever scammed, and also the case of liability coverage if your card is ever stolen and used.

In spite of that, I dont know if that protection is worth the HIGH interest and fees that you pay over the years of for using it.

Zenith · « **Reply #7 on:** April 19, 2011, 11:04:02 PM »

Quote from: Telesphorus

When you use a credit card you are being extended credit, when you use a debit card you are debiting your account.

It's a good thing to be against usury, but credit cards are better than debit cards.

My mother had a debit card swiped once - if someone steals directly from your bank account it's harder to get your money back.

We live in a society where borrowing money and agreeing to pay interest is a necessary evil for most people. Right now people who are paying down their debts on the rapidly depreciating dollar are generally making a mistake.

Credit cards are not better than Debit cards. Its a case of not putting all your eggs in one basket. It is not wise to have all your savings in an account to which your debit card is attached.

MaterDominici · « **Reply #8 on:** April 19, 2011, 11:07:03 PM »

Quote from: Catholic Samurai

In spite of that, I dont know if that protection is worth the HIGH interest and fees that you pay over the years of for using it.

This of course presumes you're keeping a balance. We charge many things to our credit card, but have never paid interest or fees.

Zenith · « **Reply #9 on:** April 19, 2011, 11:07:57 PM »

Quote from: Telesphorus

Quote from: Lybus
Quote from: Telesphorus
Quote from: Lybus
Sounds pretty cut and dry from that reasoning.

I hope I don't have to own a credit card.

You should get one. What you do with it is up to you. But not having one is not a good financial decision.

How so?

If you never get one you won't have a credit history. If you should ever be in a situation where you would need to borrow money you will have a much more difficult time.

That is not true. I have never owned a credit card and never will as long as I can help it because they are a curse!

You can still have a good credit history by paying bills on time. I had no trouble getting a house loan without one.

Matthew · « **Reply #10 on:** April 19, 2011, 11:16:23 PM »

Quote from: Zenith

You can still have a good credit history by paying bills on time. I had no trouble getting a house loan without one.

Good luck renting a hotel or car without one.

Like my wife said, having credit cards is one thing. Paying a dime of interest is another.

We can't go "cash only" as much as my Luddite self would like to, because it would take more work to keep track of where all the money is going. And we have a home business (or two) that need to have good record keeping for tax time deductions, etc.

Zenith · « **Reply #11 on:** April 19, 2011, 11:16:25 PM »

Usury is sinful and these days when our economy runs on that alone it is hard not be involved.

Though I think we as Catholics should distance ourselves as much as possible from bad debt and credit cards.

You can use a debit card for everything you would use a credit card though you are using your own money.

I think credit cards should only be used in an emergency or if you need one for business purposes.

I believe the use of credit cards for buying things we do not need it wrong as you are going into debt unnecessarily which is irresponsible.

I think the current credit card trends are simply a reflection of how people are raised as children. They want their toy or lolly now and will throw a tantrum to get it and so their parent give them what they want now.
So the children grow up wanting everything now instead of working for it and saving up.
They simply put it on their credit card. I think it is just a overused tool of a selfish selfcentred world!

Zenith · « **Reply #12 on:** April 19, 2011, 11:20:36 PM »

Quote from: Matthew

Quote from: Zenith

You can still have a good credit history by paying bills on time. I had no trouble getting a house loan without one.

Good luck renting a hotel or car without one.

Like my wife said, having credit cards is one thing. Paying a dime of interest is another.

We can't go "cash only" as much as my Luddite self would like to, because it would take more work to keep track of where all the money is going. And we have a home business (or two) that need to have good record keeping for tax time deductions, etc.

I don't know if there is any difference between debit cards in the US as to here in Australia.

I have used my debit card for hotels and rental cars many times without a hassle just like a credit card.

I can understand if you have a home business it may be needed.

Lybus · « **Reply #13 on:** April 19, 2011, 11:27:06 PM »

As I have a phobia of going into debt when I'm older, i still don't know whether or not a credit card is a good thing to have. Sounds like a very risky business to me. Keep talking guys, the debate is helping me.

Zenith · « **Reply #14 on:** April 19, 2011, 11:33:52 PM »

The only thing I would go into debt for is a house and possibly if I really needed to, maybe a car though I wouldn't want to as cars are not an investment.

I consider myself very blessed as my Father was very good with his money and he has even recorded every single penny he has spent since he was married. When we needed a loan he simply took his hand written records to the bank and they were impressed and gave him the loan.
My Father taught me not to waste money to avoid debt if you can.

Because of this I have a passionate HATE of credit cards! :smile: