@@HREAnimationz you better just use credit card for purchases and then recharge it with money from the debit one. This way you earn credit score and for emergencies you still got your own money
And I'm here sitting thinking this was common sense. I'm honestly really impressed how many dumb people like you are out there that don't know simple things
He is the teacher we always needed but never got. We need school to let us learn more about life instead of how the NASA thingy crashing into mars and how it relates to the French revolution
Since my childhood, I've seen my dad recieve a million calls from the bank for getting a credit card, but we don't have any credit card till date, my dad prefers debit card. When I asked him the reason for his preference, he said-"it's better to spend your own money without worrying than falling into the bank's debt trap grasp." He's right, he always has been.
If i may ask, how did your dad save up a credit score so he could buy things like homes or cars? I'm curious because I've never used credit and that's something i have to worry about
You don't need credit to buy those things. You need to be good at saving money. So most people get the product (car/house) first and then make $300-$500 payments a month on the mortgage or loan. Instead, save 300-$500 a month and THEN when you have enough saved up go and buy the product with cash outright. You'll save THOUSANDS in interest too @@mcxopjesh
@@mcxopjeshmaybe this person is not from the us ? as far as i know most countries ( at least in europe ) dont rlly have that much of a credit card system like in the us and prefer debit cards. if u wanna purchase something big u have to prove ur credibility through approved papers from official credit reporting agencies which keep a track on ur transactions
@@mcxopjeshits kind of unfair i believe you may be forced to get a credit card to be able to afford anything important like a house or car. its like the foundation of society has to rely on banks and its not right
Debit cards prevent overspending Edit: I don’t mean that you should only have a debit card, credit is very important if you want to apply for a mortgage or something
If you have an ounce of common sense you should use a credit card. Just be responsible and don’t spend money you don’t have. Credit cards come with tons of benefits
Building credit so you can purchase bigger value items, and then pay them back over time, this is useful for if you are in need of say a car but you cant save up enough to get it straight away, so you just buy it with your creedit card and pay it back over time.@@royalplaza4243
@@YUNGAKIMBOit’s not that simple. Credit is how you make large purchases like homes or cars. You most likely aren’t gonna save up enough money to buy a house outright, so you have enough for a down payment and then you get a bank loan to buy the house. In order to do that, you need good credit. You build credit by using a credit card and paying off your bills on time. Of course you can just never buy a house or a car and rent instead, but it’s not just a matter of saving up.
@@YUNGAKIMBOthis is something a financially uneducated individual would say. Credit cards are a powerful tool when you have financial discipline, and without one you are leaving money on the table. But good luck with your 'no credit' life you are living, we will see how enjoyable that becomes twenty years down the road.
Bro, it’s that simple, bro, just be debt free, bro, and if you’re homeless, bro, just buy a house, bro, bro. You are delusional idiot - you weren’t just lucky to have a high paying job, you were clearly lucky to have parents who were taking care of you, probably an education, depends on where are you working - so you have no idea how it is when you don’t have anything at all. You are probably also come from a 1 world country, where you can actually earn money - in my country an average hourly rate is 2-3 USD, an average monthly rate is 300-400 for a small 18 meters studio-apartment. How much do you think people will be able to save up every month? Only reason why I have a job, is because I was able to buy a drawing laptop with credit card - and yeah, I paid interest for a few months on that, then successfully closed it. You have way too much arrogance for someone who never had actually struggles in life
Yeah in my country you are being looked down by people if you tell them u use credit card for random stuff (not for serious purchases like car and stuff that you can’t really save for)
For all the people asking which ones better, debit card is better for when your younger and In your teens. But when you get to about 18, use a credit card and buy small things and make sure you pay on time. This allows you to get a good credit score at a younger age and allows you to buy more things earlier on. Car, house etc.
Thats why your credit score raises. If you pay your "tiny loans" back, your trustworthy. If you need a bigger loan, there will be no problem if you can pay it back.
@@royalplaza4243 Debit does nothing for your credit score. Just use a credit card and pay it off every month. Request credit limit increases every so often and stay within your budget.
Debit is better if you are bad about paying on time or dont want that extra responsibility. Credit is good for building credit, but you have to be responsible and know your limit and do it wisely
Another benefit of a credit card is that you are safer from fraud since it is the banks money and not directly associated with your account. It is easier to go through disputes with the bank if there is fraud on the CC as a posed to a DC.
Any reputed bank does that for a checking account. I don’t carry credit cards - too much of debt stress. But I have a well paying job and keep a few grand each week in my private client account with chase. I get all the protection I want and a personal banker I can call anytime on his cell. They have also sent me invites to the Sapphire Reserve card continuously, and recently the JP Morgan Reserve palladium card. I declined. My family comes from a line of entrepreneurs and we don’t believe in debt. Because we have had people in our family go unrestrained and accumulate a mountain of debt to be crushed both mentally, emotionally and financially
@@Vittrich My bank provides me with discardable, one time use, Virtual Credit Cards on demand. I can issue a new one every time I want to make online shopping. Virtual credit cards can be forced to have a maximum limit so that the website does not charge more than it should.
I must agree with the first comment. I’m in Germany and im using a debit card. US based credit cards might give bonuses in the US, but in Germany they want you to pay an additional fee for using a credit card. Those that don’t ask for such a fee, like American Express, give always trouble, like if you ordered online and paid with credit card and it doesn’t fit and you send the item back they are unable to refund the money towards American Express 🤦🏼♀️ On debit cards that is never a problem, it’s basically just a digital bank account where you can pay money from, but also receive money from all sources
A tip i got from my sister, use store credit cards, and get only what you can immediately pay off. Then wait about 2-3 days, then pay the bill. It will help your credit score without needing an actual credit card
@@flamesuniquehandle you're not understanding. What he means is: if your debit card info gets stolen and someone makes a big purchase you can say goodbye to your money because the bank is not responsible for your money. But if your credit card info gets stolen then the bank will do everything they can to cancel the purchase if you report it quick enough, since it's their money they take it very seriously. Basically having a credit card also protects you from stealings and other scams.
From what I seen credit cards only report things when you fail to make a payment. So it really doesn't effect your credit positively. My brother went though it as well as my mom. But neither of them were credit cards from their banks but from credit card companies so that might be the difference that makes work or not. Secured loans were how they ended up building their credit.
@@johnporter9034 It does affect you positively.. if you pay consistently and fully then it boosts your credit score. He literally said it in the video..
@@adonisparts1343yeah but you won't know ok yeah and you will forget too do that that's like literally almost you taking money from like a loanshark yeah and you have too pay that money if you like it or not yeah ok because you don't have a choice saying no
If you spend carefuly and know how to manage your money, always go for credit card over debit card. Debit cards are quite annoying sometimes, as in many cases they cannot be used for subscription-based services and the money in your account takes a few days to actually show the correct value upon spending cash. The latter might only be relevant to me tho.
Basically Credit: I have the money soon Debit: I have the money now Edit: god I’m sorry I wasn’t doing this out of spite that’s just what I took away from this please stop being mean. I didn’t think that you guys would take this literally, sorry, jeez :/
Dont use that mentality when using credit thou. I made sure when i use credit i already have that money before using it so its pretty fool proof if something happend to your income. And it just add benifits that alot of credit card have over cash and debit. Most of all if youre not using credit youre paying for other people what use one. Cos that 2%fee is required to be paid by the store not u pasically other people who do not use credit end up needing to pay for your credit fee too.
@@saam1752 yea you should only use money if you have it you should be able to paid off the credit right away if need be. Credit have alot of advantages if you use it properly.
Don't worry about it. Only people who can't control their spending and get into massive debt get credit cards. Only issue with debit cards is they're less secure.
It's not about luck. It's about being responsible. There's no reason to go into debt with a credit card vs a debit card. Just treat the credit card as if it were a debit card and you'll be good.
The other thing to think about it security. If your wallet is stolen and there’s just a credit card inside. Even if they spend money it’s a lot easier to have the charges removed and the card listed as stolen. If your debit card is stolen and money charged, it’s a lot harder to get the bank to put money back into your account.
@madmanmadlad2876 I bought one when I had money to buy 3, in cash. And no, I don't buy big and luxurious home. I bought a 60 sqm land with 42 sqm house building. I did the same thing with my car. I bought second hand car. That's why when pandemic hits and my income decrease 50%, I still have money to live comfortably for 5 years even when my income was none.
I heard about credit score from a foreign friend. Its rediculous that you have to borrow money in order to borrow money. In NL they check your employment and outstanding credits (no credit is preferred) to determine your mortage. Here people pay with their own money and credit cards are often not accepted since they're rarely used.
As a European, I always get confused. Everybody uses debit cards here, but depending on your bank contract, you have the right under certain conditions to go below zero, so basically using te bank’s money. If you don’t compensate it on time, you will get fees or even your account blocked.
It's interesting because recently in Canada one of largest banks suffered from a class action law suit due to overdraft fees being around 50-100$ per overdraft in some cases
Here is my view on it. It may be different in other countries or states plus I'm not out of school so I may no be smart enough to comment however if you have good self control you should absolutely go for a credit card. If you treat a credit card like a debit card then you can save money on cashback rewards, a better credit score, and a backup way to pay bills in case of emergencies such as an injury.
If there are any young people out there. You don’t need credit. Having no credit is actually a good idea because it would keep you from getting things you can’t afford. Sure you get some cash back but miss one payments and you basically pay more. Let me explain. Let’s say a credit company gives you 2% cash back but their interest rate is 22%. If we spend 100 and pay it off you get 2 dollars, but if you miss a payment of 100, you pay them 20 dollars interest. Now there will be 10 of you who says “pfff please I will pay it back” but only 2 of you will and the 8 of you will pay interest. Also there is a program with allows you to buy a house with no credit because hello people did that back when there was no credit. Credit is something new.
How abt not buying things u dont have money for? Just use credit cards for what they are good for, earning cashback. Treat it like debit that you simply pay at the end of the month
I can't even get an apartment on my own because the first thing they ask for is my credit score and I have no credit history. I would be homeless without my friend who I split rent with.
Isn’t complicated, but telling people you don’t need credit, is insane. I live in Ontario, Canada. Here, you need credit to rent your first apartment, get a car on lease of finance, apply for a better rate on a university/college loan.
@@euclid4703it is in burger land because the system is predatory. Normal banks automatically draft what they are owed each month so you don't have to worry about incurring interest
@@noonelikesfurries they have atms for that, so you can pull money out of the wall with a credit card, but stores only allow debit cards since that means the money is instantly payed over, with a credit card the money only gets transferred over when the debt is payed
@amiman.yesiam.8791 Most stores won't accept any credit cards, goes especially for small stores and restaurants for whom the bank fees are not economical. The bigger chains will usually only accept Visa/Mastercard, but no AmEx for example.
My Grandpa gave my brothers and I advice simular to this. Use your credit card only when you have 125% in the bank. This way you build credit but dont pay intrest and just reap the benifits. He has a litterally perfect crdit score.
@blueravenstar4162 Most families don't, finance is one thing people don't like to talk about and results in most divorces, and people don't share their salary amounts. It's just stigma. Credit cards, well managed, are good. You can take out a 0% interest Credit card, build up the balance, make minimum payments only and cash the interest in a deposit account for free. But only if you're a credit card person. And write down everything you spend in a month to see where it goes. Do you need every single subscription? What is it you really spend on takeout each month? It's helpful. (Sorry I didn't answer your question: School and family doesn't teach you sorry :( I'm an accountant so ive learnt through work)
@@Nana_molina-h9z They're probably from an upper class or at least upper-middle class family. The children from those families _tend_ to be more financially literate than others. Because their parents are also usually more financially literate than others
Okay, so a few things on credit vs debit: Debit (or hard cash) should be used for small purchases at reliable vendors. It is your money, and so the bank is often able to deny responsibility for charges when the card is stolen. Act as though all purchases are final. Credit cards should be used to build up credit and also as a means of having safety in somewhat shady transactions such as potential scams online or sketchy gas pumps. The bank's money is first and foremost used, and so they have a vested interest in contesting fraudulent purchases. They also provide a method of purchasing essentials when bills are tight. Not an ideal solution, but it provides you with options. Neither is objectively better. Both have their merits. I'm confident in saying that anybody who tells you one is objectively better has not fallen under hardship, and/or does not understand the purpose of each type of card.
Respect to this man for the time he takes to make these drawings for each video edit: I was just watching Gohar then I decided to read comments and- o..m..g how did this comment get so many likes
Super answer: BOTH!! Use the debit card for smaller things like gifts or shopping and use the credit card for more pricey things and pay it off on time!!
My math teacher last year taught me that if you’re just starting to build your credit to mainly use it on gas and small things so it’s easier to pay off and you can save your own money up easier that way as well
@@maddogmadison6379I haven’t used my debit card since I’ve got my credit card now why would I need to use my debit when the credit card is basically giving me some of my money back just for using it
Credit score is calculated differently in each country. In Sweden, for example, credit cards have nothing to do with the equivalent of credit score. There it’s all based on regular loans and the amount of money you make per month.
only the US got a problem with Credit scores trust me. i am european as well and Credit cards pretty much dont exist over here. Debit cards is what we use. ofc people do have Credit cards but they are used far FAAAAAR less then a debit card.
what you say makes no sense. a debit card is not a credit card. and no we don't spend more. we spend what we have on our account. if that account is empty we are broke. you on the other hand spend and spend and spend don't knowing how much money you can spend. so at the end of the month you have a bill that you cant pay. now what? you have a problem. cant pay the bill problem with your credit score and credit company. you are in big trouble now. we when we use a debit card and our account is empty its our fault. not the bank not anyone else. so i don't have problems with the bank or any other company. its all on me. so no Debit card is safer and you cant spend money what you don't have. Americans don't understand this. Credit card debts is the second highest debt in the US after medical bills. and you Americans still don't see why.@@leothaz2921
The benefits of credit cards if used properly 1. Opening an account with no interest for up to 18 months. (Can keep a bit of debt with no penalties) 2. New accounts have up to $200 cashback if spending on a certain amount in a specific time window. ( really helpful if you have a huge bill to pay off in the 1st place works well with rule 1) 3. Cashback with all purchases (think of it as shopping with coupons) 4. Builds credit as in the video stated 5. In case stolen or used in fraud transactions the bank is more intuitive to cancel transactions so you dont pay. (More willing due to it being their money not yours.....freaking tools 😂) As stated credit cards are just as beneficial just need to know how to manage properly
Cashback on all purchases is like shopping with coupons??? WHat about interest?? Everything you mentioned is EXACTLY how people wind up in more debt than they can handle. $200 cashback if you rack up so much debt in specific time? Again, it is encouraging you to spend money you don't have and will have a harder time paying off and would be more likely to have to carry a balance for a longer period of time. Credit card companies have war gamed this out and they are in it to make money not break even or lose money. There is ALWAYS fine print.
@@impalamama7302it is called use your credit card like a debit card and immediately pay everything off and don't spend more than you have and you will never be in debt and have all of the benefits
I just wanted to say thank you for sharing this. Because you're right. The worst thing that you can feel is hopelessness. And I hope that someone who is on the verge of losing hope finds *sentinel Recover* and realizes that as long as you're still alive and breathing, there's a chance, there's HOPE that the future is brighter then the present day.
@@pcoverthinkhe’s talking about 30% of the limit. Having a high utilization rate hurts more than it helps at any stage. I started with a 500 credit limit and after a year with my company they increased it to 2500 and my score is a 720 (started at 500). All it takes is discipline and consistency to build up your credit limit and score.
It doesn't even work as advertised. Paying the bills on time wouldn't improve your credit score as the bank sees you as a deadbeat. No interest = no money for the bank and affiliates.
I've never had a credit card yet my credit score is perfect. I've taken out a loan once and paid back in time, and used a debit card for years, so I assume it just built up slowly while a credit card paid back diligently will just raise your score faster.
@@Chronixx6you lose those reward when you have to pay the bank second the rewards are. Very tiny and take time to accumulate third you don’t need credit when you have money that you make that you spend accordingly
@@Messup7654what about your credit? There’s nothing wrong with having a CC if you’re responsible, the key is don’t spend money you don’t have in your bank account.
An important difference is if the card is misused, as in the case of identity theft. The credit card is much easier to report fraud and charges will be wiped, but if your checking account is drained through a debit card, it is much harder to recover those funds. If you aren't good with credit cards consider a charge card for the same protections, and not having it tied to. an account that holds a large sum of money.
There are 3 advantages of Credit card : 1. If money is stolen from your credit card and you report on time, the bank does everything possible to get the money back (as it was their money technically) and thus there's more protection with a Credit card if you report the fraud just in time... But if money was stolen from Debit card, bank would not even care much as it wasn't their money... 2. There are massive discounts you can get using Credit cards 3. If you have good credit score (you need to pay your bills on time anyways if you have a credit card) then you can get loans at good interest rates... Still Credit Cards have problem if they are overused or you forget to pay bills on time Otherwise it's fine Debit cards have their own benefits too...
Ok but can i just thank you for telling me the difference between these 2 cards. Because I always ask my siblings the difference and they go: "Oh ones for interest and the other is for you to keep" and it would still be so confusing for me so thank you!!!
you still need both though because you do want good credit. i advise you to use a credit card for recurring payments like subscriptions and your debit card for day to day use
@@hotcrispybiscuits I don't have a debit card. I've never needed one. I do have a few credit cards. I do not have any credit card debt. I disagree with you about using a debit card for day to day purchases. I use my credit card for everything, gas groceries clothes eating out. I pay the full balance every month. I have the money in my bank account to pay for these things, but I get rewards points for all my purchases. That saves me a bit more money as I use it for purchases.
Also if you buy using credit. A lot of banks have an option where, if you didn't like it and the store refused a refund. They'll refund you instead. Some other credit cards have stuff like built in car rental insurance. Its much better to use credit for the points if you're able to completely pay it off at the end of the month
Another (admittedly slight) benefit of using a credit card is that in between spending money and paying off your bill you can be earning interest on it because you spent the bank’s money, not your own
They all come with their benefits and drawbacks. Debit cards spend your money and avoids overspending, while credit cards allow better cash flow by paying the bank later. Theoretically, credit cards is better if you pay back on time and avoid paying only the minimum payment, but debit cards allows you to spend what you have instead of what you will have. I do have both cards, and I use credit cards for my groceries shopping, enjoying more cashback than if I use debit card, meanwhile using debit cards for online purchases because somehow my debit card waives 2% transaction fee for overseas/foreign currency transactions 😅
inflation sure buddy you can do that nobody is stopping you but here what happens if you use credit card you can buy materials as many as you want but make sure to pay on time so you will finish building your house asap when you save and build you will take longer because you are waiting on your salaries for months to years you will finish it longer plus inflation over the years piling up to the point you will never be finish so using credit/loan makes it easier that you can pay monthly but you had your house asap and the bills you pay is fixed because you already built your house and the materials are not increasing by the time you finished your house
@@francisjosephcutamora8530A credit card won't pay for a house unless you're a millionaire and a dumbass. You never go in debt on a credit card which you cannot pay off by the end of the month, that's where the high interest gets you. What you do instead is create a savings account or invest in something else, there you save up for a down-payment and get a mortgage with a better interest rate. Credit cards are nearly useless anywhere outside of the US, because there is no credit score and very little benefits.
@francisjosephcutamora8530 I don't like the idea of paying loans. A mortgage in country take a good chunk of your pay check and if your not a government worker or someone whose sure of their money each month then it could be difficult. Most people here just don't want to bother worrying about paying back that loan with the interest so it's easier to just save a little money and slowly build the house part by part. Build a small part that you can live in and then slowly add on. People do borrow mortgage but the regular everyday people just do this. At least that's what I'm planning to do.
@@PrincessPresident as i have said no one is stopping you but you might want to reconsider but sure you just save and build a small house but you could also loan and build small house we hhave the freedom to do so but i think you will finish it longer without loan but at least build a house in loan or by saving is good goal own house is better than renting
credit card is still better even if ye not american. Source: not american here. especially if it has cashback. cause on debit card, ye just never getting anything back.
The only reason I started using my cc for everything was the cash back rewards. I always used a debit card but in the past year or so, I've gotten hundreds back on my daily purchases, so I think it's a win - it's paying for stuff with one extra step (paying it back) and getting a reward. Way better than just "paying" imo
@danielandres4358 no what they mean is that POV you're broke so you won't be able to have a credit card cuz you will not be able to pay back what you owe to the bank but also you won't be able to have a debit card cuz you don't have any money to spend 😂😂
the key is to treat your credit card as if the money you're borrowing from the bank is already gone from yours, as much as you can possibly help it. personally since i get 10 withdrawals per month from savings, i will put all of my spent credit card money into savings the second I'm able to, and it's still there if i really need some of it between pay checks
debit almost offers 0 money protection unlike credit card who will fight their lives for it. Some countries also offer insane credit card bonuses while you almost earn nothing with a debit card. Credit card is better in every way as long as you NEVER get balance you've forgot to pay
My tip : get a debit first, and then a credit. However, use ur debit 80% of the time, and a credit only 20% of the time. Also, make sure you set a goal you cannot spend over with your credit card, like 800$, or 1000$ depending on your condition. Edit : 8 month older version of me here. I forgot about credit score when making this, so it’s better to start off with debit card and slowly build your way up to credit card, when you realize you can keep track of your bills. Start using ur credit card for cheaper things and KEEP TRACK OF EVERYTHING B4 U MESS UP.
@@SxcialAnxietyJust people being stupid. Use your credit card as much as you can, you earn cash back and banks loves if. + Is much easier and convenient, you can easily add them to your phone with apple pay and Google pay. If your are too dumb and unfit for society ( what if I spend too much money with credit), stay at your mom's house. There is not a single reason to use your debit card when you have the choice of both. And btw, debit doesn't always protect from overspending: you can sometimes overdraw, and fees can be much higher than credit card interest.
@@SxcialAnxiety Most people are dump and Credit cards push your paying into the future till the day comes the bank says : ok you have to pay back now! And this is how the finance crisis arround 2006 happend. To much Credit for people who should not have a Creditcard at all
I have a debit, credit and savings account. I live off of my credit card and for the time that i don't yet have to pay my credit card, i store my money in my savings account which earns me interest which covers my credit card fees and then some. Its best of all worlds
Hey just so you know, I had great credit by using a credit card for years, only to when I comes to buying my own car they said, hey we don’t care how good your credit score is, you haven’t taken a loan out for a house or car yet so we’re gonna give you really high interest. Which I think is bull
@@imveryaverageatpayday58q9 it's the card where you can only spend from the money you own, This ensures that you don't overspend alot of money because you are limited by your wallet
A credit card is not really the banks money, it's a loan against your money and always has interest added on. Especially if you have no credit you could be paying 25-30% more than if you just bought the item yourself.
@@killugonkillugon7270 its not tho. using a credit card means you buy stuff and the bank pays for it then sends you the bill later. youre literaly indebting yourself to the bank that your account is on.
answer: get both, but pay off your credit card bills on time, and try to keep your utilization ratio under 30%
Bro copied the guy 😭
and pinned himself 😅
I have a Debit because I at least have my own money, but I am planning to get a credit card for emergencies.
Nah bro u legit copied the guy wtf
@@HREAnimationz you better just use credit card for purchases and then recharge it with money from the debit one. This way you earn credit score and for emergencies you still got your own money
"luckily he pays his bills on time"
Very important line.
That's a no credit card from me then 😂
Crazy how my teacher talked about this today and now this video went up
The average zoomer has $25,000 in debt. You are not above being in debt. Banks know this.
LUCKILY!!, most people won't lol
I still owe like, $2 to IRS
My guy went from helping me with my education to my finances
fr
I'm not complaining tho 😂
And I'm here sitting thinking this was common sense. I'm honestly really impressed how many dumb people like you are out there that don't know simple things
He is the teacher we always needed but never got. We need school to let us learn more about life instead of how the NASA thingy crashing into mars and how it relates to the French revolution
@@Cosmo_TheCosmicSwissrollFr bro
Since my childhood, I've seen my dad recieve a million calls from the bank for getting a credit card, but we don't have any credit card till date, my dad prefers debit card. When I asked him the reason for his preference, he said-"it's better to spend your own money without worrying than falling into the bank's debt trap grasp." He's right, he always has been.
If i may ask, how did your dad save up a credit score so he could buy things like homes or cars? I'm curious because I've never used credit and that's something i have to worry about
You don't need credit to buy those things. You need to be good at saving money. So most people get the product (car/house) first and then make $300-$500 payments a month on the mortgage or loan. Instead, save 300-$500 a month and THEN when you have enough saved up go and buy the product with cash outright. You'll save THOUSANDS in interest too @@mcxopjesh
@@mcxopjesh go Watch Dave Ramsey he’ll explain how you do it with out a credit score and if you pay attention you’ll save your self a lot of stress
@@mcxopjeshmaybe this person is not from the us ? as far as i know most countries ( at least in europe ) dont rlly have that much of a credit card system like in the us and prefer debit cards. if u wanna purchase something big u have to prove ur credibility through approved papers from official credit reporting agencies which keep a track on ur transactions
@@mcxopjeshits kind of unfair i believe you may be forced to get a credit card to be able to afford anything important like a house or car. its like the foundation of society has to rely on banks and its not right
How to avoid credit card debt:
1. Don't spend more than you have
2: Make sure your credit card didn't stolen by gold digger
2. Don't get a credit card.
This@@UltimatePiccolo
or get a debit card
I think it's crazy how you actually have to tell that to people.
"Don't spend the money you don't have"
Yep ! Exactly
If ur sure u will get money so that u can pay the credit amount in time then yes! Otherwise it's just not worth it
Unless you're spending it on an asset that can yield even more money.
My problem is credit cards are the only real way to interest you credit score
@@Spinosaurus4everThat’s always a great idea until it doesn’t work
@@krish4659there are many other more stable ways to build credit that doesn't require you to take debt every single purchase.
>get credit card
>spend all of the bank’s money
>bank goes out of business
>you’re no longer in debt
taht
😂
I usually get stopped at step 1.5 because my cc’s have limits 😂
Technically you would still be in debt and will have to pay off during dissolution process
No because the federal government will bail them out and you still owe. Happend to Visa. Thank Obama
safety first:❌
debit first:✅
Debit cards prevent overspending
Edit: I don’t mean that you should only have a debit card, credit is very important if you want to apply for a mortgage or something
Actually no, cause there ain’t a credit limit
Only if you have overdraw protection
@YashaswinPathangi-hi4kl yes and you need a confumation
Only if your bank balance is low
If you have an ounce of common sense you should use a credit card. Just be responsible and don’t spend money you don’t have. Credit cards come with tons of benefits
"He spending the bank's money."
"..and his salary is bank's money"
So technically, he is spending his own money...
@@blacksmith2316thays what I thought yea
So what’s the point?
@@royalplaza4243 credit card also give about 2% cash back, which means every 100 you earn 2 dollar tax free.
Building credit so you can purchase bigger value items, and then pay them back over time, this is useful for if you are in need of say a car but you cant save up enough to get it straight away, so you just buy it with your creedit card and pay it back over time.@@royalplaza4243
He can buy a house or a car with a credit card using bank money
"-Both?
-Both.
-Both is good"
That is not how capchas work
Y'know probably not in this case
pootis engange extreme (el dorado) reference, love that
_"My lords--"_
*"MY LORDS..."*
Love the reference
If you aren't financially responsible, don't use a credit card. Only deal with cash.
Bro some stuff you gotta buy online
Depends, I believe if you're just starting out maybe use a debit since credit would possibly go up if left unmanaged
Yea this is why I only have a debit card cause I'd definitely spend too much with a credit card-
The credit card guy is spending his own money with more steps.
the building of credit is important to save money on future bigger purchases which require loans
@@YUNGAKIMBOit’s not that simple. Credit is how you make large purchases like homes or cars.
You most likely aren’t gonna save up enough money to buy a house outright, so you have enough for a down payment and then you get a bank loan to buy the house. In order to do that, you need good credit.
You build credit by using a credit card and paying off your bills on time.
Of course you can just never buy a house or a car and rent instead, but it’s not just a matter of saving up.
@@YUNGAKIMBOthis is something a financially uneducated individual would say. Credit cards are a powerful tool when you have financial discipline, and without one you are leaving money on the table. But good luck with your 'no credit' life you are living, we will see how enjoyable that becomes twenty years down the road.
Bro, it’s that simple, bro, just be debt free, bro, and if you’re homeless, bro, just buy a house, bro, bro.
You are delusional idiot - you weren’t just lucky to have a high paying job, you were clearly lucky to have parents who were taking care of you, probably an education, depends on where are you working - so you have no idea how it is when you don’t have anything at all. You are probably also come from a 1 world country, where you can actually earn money - in my country an average hourly rate is 2-3 USD, an average monthly rate is 300-400 for a small 18 meters studio-apartment. How much do you think people will be able to save up every month?
Only reason why I have a job, is because I was able to buy a drawing laptop with credit card - and yeah, I paid interest for a few months on that, then successfully closed it.
You have way too much arrogance for someone who never had actually struggles in life
It’s literally a scam by banks to make you spend use a credit card by saying you can’t get a house if you don’t use it
The idea of "credit score" is insane
Not really. What's insane is how financially braindead adults in America are.
It is. It gives people a false sense of security.
It's not insane, it's a metric to assess how reliable someone is. It's not perfect but it's as good as banks have
The idea of not spending more than you have is such a crazy concept
It’s how the bank makes money
Europe: debit card is the standard. USA: credit card is the standard. 😅
And when you look at the staggering difference between the two, I'm proud to not have any credit cards.
only use my credit card for gas ngl
True, in Europe, Poland if u have a cc that symbolises you can't make ends meet
Yeah in my country you are being looked down by people if you tell them u use credit card for random stuff (not for serious purchases like car and stuff that you can’t really save for)
Exactly, i only have a debit card (France)
Him saying" with your OWN MONEY" with no further explanation explains Everything 😭✋
For all the people asking which ones better, debit card is better for when your younger and In your teens. But when you get to about 18, use a credit card and buy small things and make sure you pay on time. This allows you to get a good credit score at a younger age and allows you to buy more things earlier on. Car, house etc.
Not to mention the benefits with using a credit card such as cash-back, better in almost every situation unless you are irresponsible
You paid for that cash back when you paid that yearly fee
Some credit cards also come with tons of extra benefits
@@Changesooonnot all cards have a fee.
As someone who lives in a country that's stuck in the 1900s and doesn't have credit cards
No.
Credit is like pulling out tiny loans each time you buy something
True, which is fine as long as you pay it off every month.
Thats why your credit score raises. If you pay your "tiny loans" back, your trustworthy.
If you need a bigger loan, there will be no problem if you can pay it back.
@@T.F.Investbut woulsnt it be the same if the person just do it thru debit without loans?
@royalplaza4243 no, bc you use your own money for payments with Debit cards.
@@royalplaza4243 Debit does nothing for your credit score. Just use a credit card and pay it off every month. Request credit limit increases every so often and stay within your budget.
"Luckily he pays his bills on time"
At worst, he could be homeless next month
ur pfp
Ik right 💀🍆
THE PFP 💀
IM CRYING THAT PFP IS GENUIS
BRO THAT PFP 😭
Dude how are you able to help people this much? It's just flabbergasting, most useful guy on the internet
Debit is better if you are bad about paying on time or dont want that extra responsibility. Credit is good for building credit, but you have to be responsible and know your limit and do it wisely
Lol 666 likes
@StephanieWacholz dang i came back from school and it's a 700
The extra responsibility of opening your phone for 30 seconds once a month to pay the bill?
@Liam_The_Great if you forget to, then yes. Also, why borrow money that's not yours 🤷♀️
@@StephanieWacholzfor building credit, that’s literally what you said in your comment
Another benefit of a credit card is that you are safer from fraud since it is the banks money and not directly associated with your account. It is easier to go through disputes with the bank if there is fraud on the CC as a posed to a DC.
Any reputed bank does that for a checking account. I don’t carry credit cards - too much of debt stress. But I have a well paying job and keep a few grand each week in my private client account with chase. I get all the protection I want and a personal banker I can call anytime on his cell. They have also sent me invites to the Sapphire Reserve card continuously, and recently the JP Morgan Reserve palladium card. I declined. My family comes from a line of entrepreneurs and we don’t believe in debt. Because we have had people in our family go unrestrained and accumulate a mountain of debt to be crushed both mentally, emotionally and financially
I just shut off my card through my banking app whenever I’m not making a purchase
exactly bro, Bank as a big company always wins rather than individual
One of the most important benefits.
Where i live the Bank has to pay a sum up to 100k in these cases..
For everyone not in the US: Choose the debit card.
I have both, i buy everything online or personal with my Debit Card and for vaccation i use my Credit Card simply for the travel insurance.
@@Vittrich My bank provides me with discardable, one time use, Virtual Credit Cards on demand. I can issue a new one every time I want to make online shopping. Virtual credit cards can be forced to have a maximum limit so that the website does not charge more than it should.
In my country almost no one uses a credit card
I must agree with the first comment. I’m in Germany and im using a debit card. US based credit cards might give bonuses in the US, but in Germany they want you to pay an additional fee for using a credit card. Those that don’t ask for such a fee, like American Express, give always trouble, like if you ordered online and paid with credit card and it doesn’t fit and you send the item back they are unable to refund the money towards American Express 🤦🏼♀️
On debit cards that is never a problem, it’s basically just a digital bank account where you can pay money from, but also receive money from all sources
But have credit for emergency. Ngl, it saved my and my family ass multiple times when we had hard times
A tip i got from my sister, use store credit cards, and get only what you can immediately pay off. Then wait about 2-3 days, then pay the bill. It will help your credit score without needing an actual credit card
Pro tip. If your own money gets stolen, bank goes "Meh". If the bank money gets stolen, then things get serious.
they print more money
This is scummy man
100th like
You don't care if a another person you don't know steals from someone
@@flamesuniquehandle you're not understanding. What he means is: if your debit card info gets stolen and someone makes a big purchase you can say goodbye to your money because the bank is not responsible for your money.
But if your credit card info gets stolen then the bank will do everything they can to cancel the purchase if you report it quick enough, since it's their money they take it very seriously.
Basically having a credit card also protects you from stealings and other scams.
“You take Credit, you’ll regret it.”-My mom
Your mom can’t control her finances more like it.
@@Toastboy9129 Actually true. Although most of it went to her mom’s funeral so I can’t blame her.
@@Toastboy9129 bro 💀
From what I seen credit cards only report things when you fail to make a payment. So it really doesn't effect your credit positively. My brother went though it as well as my mom. But neither of them were credit cards from their banks but from credit card companies so that might be the difference that makes work or not. Secured loans were how they ended up building their credit.
@@johnporter9034 It does affect you positively.. if you pay consistently and fully then it boosts your credit score. He literally said it in the video..
Credit card is just the way bank trained you to get in debt.
Only if you don't have the discipline to not live beyond your means, sure.
People these days are fixated on instant gratification and don’t know the concept of restraint.
"How to avoid credit card debt:
1. Don't spend more than you have"
- Random comment guy, 2024
@@adonisparts1343yeah but you won't know ok yeah and you will forget too do that that's like literally almost you taking money from like a loanshark yeah and you have too pay that money if you like it or not yeah ok because you don't have a choice saying no
worked on me
If you spend carefuly and know how to manage your money, always go for credit card over debit card. Debit cards are quite annoying sometimes, as in many cases they cannot be used for subscription-based services and the money in your account takes a few days to actually show the correct value upon spending cash. The latter might only be relevant to me tho.
Basically
Credit: I have the money soon
Debit: I have the money now
Edit: god I’m sorry I wasn’t doing this out of spite that’s just what I took away from this please stop being mean. I didn’t think that you guys would take this literally, sorry, jeez :/
Dont use that mentality when using credit thou. I made sure when i use credit i already have that money before using it so its pretty fool proof if something happend to your income. And it just add benifits that alot of credit card have over cash and debit.
Most of all if youre not using credit youre paying for other people what use one. Cos that 2%fee is required to be paid by the store not u pasically other people who do not use credit end up needing to pay for your credit fee too.
@@Bixmybenefits for using a credit card… haha. The only benefit is that you’re 100% stupid.
This is an awful mentality enjoy having an awful credit score
@@saam1752 yea you should only use money if you have it you should be able to paid off the credit right away if need be. Credit have alot of advantages if you use it properly.
@@Bixmybro went on a whole yap session
Economy class in just seconds.
Some flaws but he's got the right idea
I still appreciate my teachers for teaching me.
But this makes me understand it easier.
This is not economics 💀💀💀
@@187miL what then? I have no clue?
@@ishouldbegone.3400personal finance
I don't live in America so credit score is a completely alien concept
I live in America and credit score is a foreign concept. No one teaches you anything
What the hell😂 but can you buy a house without credit card@@moonrabbit3228
@@moonrabbit3228 and at that point just get a debit card, that's where the issue is
Don't worry about it. Only people who can't control their spending and get into massive debt get credit cards. Only issue with debit cards is they're less secure.
@@zydn that's why I buy everything in cash
use the credit card for small purchases and debit card for large purchases
Steps misunderstood, I'm am now under arrest for tax fraud
Word.
😂😂😂😂
How?
@@Akwastahe didn't pay the money he took when he used credit card
@@Akwasta idk ask al capone
"Luckily" he pays on time
It's not about luck. It's about being responsible. There's no reason to go into debt with a credit card vs a debit card. Just treat the credit card as if it were a debit card and you'll be good.
@@thehoneycamper2634 I agree. As long as you responsibly keep track on your expenses, credit cards shouldn’t be an issue.
@@thehoneycamper2634well that's like some unicorn person
@@amarbinay6654People today are absolutely allergic to learning about the basics of finance.
@@thehoneycamper2634kinda hard being responsible when you're very forgetful, so it's very stressful for me so i switched to debit
Another important piece of this is to typically only use 30% of your limit. That's how you up your credit score the most.
oh, hey.
25% don’t go 30 😀
The other thing to think about it security. If your wallet is stolen and there’s just a credit card inside. Even if they spend money it’s a lot easier to have the charges removed and the card listed as stolen. If your debit card is stolen and money charged, it’s a lot harder to get the bank to put money back into your account.
I sensed a Rubik's cube so I had to show up
lmao 🤣, my brother is such a big fan of you btw
Lmao😂😂😂😂
YO HE’S HERE
I have same it's name is x man tornado v2
No it's not this is definitely a gan@AltAkshat9494
*_When you realize you can use a debit card to pay off your debts_*
@@higuys89756r u my friend
Skibidi toilet
@@higuys89756bruh
@@higuys89756shut up you gen alpha 5 year old
@@higuys89756ƙׁׅꪱׁׁׁׅׅׅᥣׁׅ֪ᥣׁׅ֪ ᨮׁׅ֮ᨵׁׅׅυׁׅꭈׁׅׅ꯱ꫀׁׅܻ݊ᥣׁׅ֪ܻ⨍ ᨮׁׅ֮ᨵׁׅׅυׁׅ ܻ⨍υׁׅᝯׁ֒ƙׁׅꪱׁׁׁׅׅׅ݊ꪀᧁׁ ꭈׁׅꫀׁׅܻ݊tׁׅɑׁׅꭈׁׅժׁׅ݊ꫀׁׅܻ݊ժׁׅ݊ ݊ꪀꪱׁׁׁׅׅׅᧁׁᧁׁa
My dad always says “if you can’t buy it three times you can’t afford it” 😭
Yeah sure buy house 3 times
@@madmanmadlad2876If you can make the house payment three times per month then you're golden.
@madmanmadlad2876 I bought one when I had money to buy 3, in cash. And no, I don't buy big and luxurious home. I bought a 60 sqm land with 42 sqm house building. I did the same thing with my car. I bought second hand car. That's why when pandemic hits and my income decrease 50%, I still have money to live comfortably for 5 years even when my income was none.
@@snowyconfession so so proud of you ! First of all your dad is absolutly right dont listen to these haters
Your dad is a phoney, because the original saying is twice.
I heard about credit score from a foreign friend. Its rediculous that you have to borrow money in order to borrow money. In NL they check your employment and outstanding credits (no credit is preferred) to determine your mortage. Here people pay with their own money and credit cards are often not accepted since they're rarely used.
I advise that if you don't know how credit cards work, use debit cards
He just explained it. It’s really that simple.
If you don’t know how to spend less than you make then you should probably use debit cards.
As a European, I always get confused. Everybody uses debit cards here, but depending on your bank contract, you have the right under certain conditions to go below zero, so basically using te bank’s money. If you don’t compensate it on time, you will get fees or even your account blocked.
Debit cards usually work the same here, depending on the bank.
Bro you said 'I from malaysa' Then you said "As a European" 💀💀💀💀💀
luckily we don't have to deal (yet) with that stupid credit score thing banksters assign to everyone.
It's interesting because recently in Canada one of largest banks suffered from a class action law suit due to overdraft fees being around 50-100$ per overdraft in some cases
@@AlexMuseMatrix What? I never said I was from Malaysia ??
Its so stupid that schools don't teach such things. Thanks.
Actually we did
It's common sense.
@@AlCatSplat how would it be common sense?
It's great they didn't. Unfortunately in the US you need to have good credit scores Unless you have contacts.
@@sartajparveen2001 How is it great that schools don't teach you a skill you will most likely *have* to know when you're older?
Here is my view on it. It may be different in other countries or states plus I'm not out of school so I may no be smart enough to comment however if you have good self control you should absolutely go for a credit card. If you treat a credit card like a debit card then you can save money on cashback rewards, a better credit score, and a backup way to pay bills in case of emergencies such as an injury.
those paper cutouts are just beautiful ♥
If there are any young people out there. You don’t need credit. Having no credit is actually a good idea because it would keep you from getting things you can’t afford. Sure you get some cash back but miss one payments and you basically pay more. Let me explain. Let’s say a credit company gives you 2% cash back but their interest rate is 22%. If we spend 100 and pay it off you get 2 dollars, but if you miss a payment of 100, you pay them 20 dollars interest. Now there will be 10 of you who says “pfff please I will pay it back” but only 2 of you will and the 8 of you will pay interest. Also there is a program with allows you to buy a house with no credit because hello people did that back when there was no credit. Credit is something new.
How abt not buying things u dont have money for? Just use credit cards for what they are good for, earning cashback. Treat it like debit that you simply pay at the end of the month
I can't even get an apartment on my own because the first thing they ask for is my credit score and I have no credit history. I would be homeless without my friend who I split rent with.
Isn’t complicated, but telling people you don’t need credit, is insane. I live in Ontario, Canada. Here, you need credit to rent your first apartment, get a car on lease of finance, apply for a better rate on a university/college loan.
So just be the 2 out of 8? Got it
@@brianconrodyeah but canada sucks so move to another country
"whered u get that"
*start slamming the table*
Credit card: 5 tips
Debit card: 1 tip
Cause one is basically just spending yhe money you have in the bank and one is taking a small loan that you have to pay back
Definitely not biased
As a Dutch person; debit, most places don’t accept credit cards so they’re basically useless here
isn’t that a good thing? the way he’s describing credit makes it seem awful
@@euclid4703it is in burger land because the system is predatory. Normal banks automatically draft what they are owed each month so you don't have to worry about incurring interest
what do you mean most places don't accept credit cards? they don't accept cards that utilize visa or mastercard?
@@noonelikesfurries they have atms for that, so you can pull money out of the wall with a credit card, but stores only allow debit cards since that means the money is instantly payed over, with a credit card the money only gets transferred over when the debt is payed
@amiman.yesiam.8791 Most stores won't accept any credit cards, goes especially for small stores and restaurants for whom the bank fees are not economical. The bigger chains will usually only accept Visa/Mastercard, but no AmEx for example.
My Grandpa gave my brothers and I advice simular to this. Use your credit card only when you have 125% in the bank. This way you build credit but dont pay intrest and just reap the benifits. He has a litterally perfect crdit score.
Your family talks about credit cards and stuff? Who normally teaches us about these things btw? My family doesnt.
@blueravenstar4162 Most families don't, finance is one thing people don't like to talk about and results in most divorces, and people don't share their salary amounts. It's just stigma.
Credit cards, well managed, are good. You can take out a 0% interest Credit card, build up the balance, make minimum payments only and cash the interest in a deposit account for free. But only if you're a credit card person.
And write down everything you spend in a month to see where it goes. Do you need every single subscription? What is it you really spend on takeout each month? It's helpful.
(Sorry I didn't answer your question: School and family doesn't teach you sorry :( I'm an accountant so ive learnt through work)
@@Nana_molina-h9z They're probably from an upper class or at least upper-middle class family. The children from those families _tend_ to be more financially literate than others. Because their parents are also usually more financially literate than others
Okay, so a few things on credit vs debit:
Debit (or hard cash) should be used for small purchases at reliable vendors. It is your money, and so the bank is often able to deny responsibility for charges when the card is stolen. Act as though all purchases are final.
Credit cards should be used to build up credit and also as a means of having safety in somewhat shady transactions such as potential scams online or sketchy gas pumps. The bank's money is first and foremost used, and so they have a vested interest in contesting fraudulent purchases. They also provide a method of purchasing essentials when bills are tight. Not an ideal solution, but it provides you with options.
Neither is objectively better. Both have their merits. I'm confident in saying that anybody who tells you one is objectively better has not fallen under hardship, and/or does not understand the purpose of each type of card.
the friend:
lets be financially responsible!
_aw dang it_
Respect to this man for the time he takes to make these drawings for each video
edit: I was just watching Gohar then I decided to read comments and- o..m..g how did this comment get so many likes
They aren’t compels drawings
about a minute each i’d assume
not that hard to make but still respect
Super answer: BOTH!! Use the debit card for smaller things like gifts or shopping and use the credit card for more pricey things and pay it off on time!!
Literally the other way round
@@Drqala wrd
@@Drqalaexactly
My math teacher last year taught me that if you’re just starting to build your credit to mainly use it on gas and small things so it’s easier to pay off and you can save your own money up easier that way as well
@@maddogmadison6379I haven’t used my debit card since I’ve got my credit card now why would I need to use my debit when the credit card is basically giving me some of my money back just for using it
Thank you so much!! In grade11 and learning about banking/budgeting! We have a test tomorrow and so glad this came up
Credit score is calculated differently in each country. In Sweden, for example, credit cards have nothing to do with the equivalent of credit score. There it’s all based on regular loans and the amount of money you make per month.
America = stupid.
Yeah in Europe credit cards are just debit cards but you end up spending more
only the US got a problem with Credit scores trust me. i am european as well and Credit cards pretty much dont exist over here. Debit cards is what we use. ofc people do have Credit cards but they are used far FAAAAAR less then a debit card.
what you say makes no sense. a debit card is not a credit card. and no we don't spend more. we spend what we have on our account. if that account is empty we are broke. you on the other hand spend and spend and spend don't knowing how much money you can spend. so at the end of the month you have a bill that you cant pay. now what? you have a problem. cant pay the bill problem with your credit score and credit company. you are in big trouble now. we when we use a debit card and our account is empty its our fault. not the bank not anyone else. so i don't have problems with the bank or any other company. its all on me. so no Debit card is safer and you cant spend money what you don't have. Americans don't understand this. Credit card debts is the second highest debt in the US after medical bills. and you Americans still don't see why.@@leothaz2921
The benefits of credit cards if used properly
1. Opening an account with no interest for up to 18 months. (Can keep a bit of debt with no penalties)
2. New accounts have up to $200 cashback if spending on a certain amount in a specific time window. ( really helpful if you have a huge bill to pay off in the 1st place works well with rule 1)
3. Cashback with all purchases (think of it as shopping with coupons)
4. Builds credit as in the video stated
5. In case stolen or used in fraud transactions the bank is more intuitive to cancel transactions so you dont pay. (More willing due to it being their money not yours.....freaking tools 😂)
As stated credit cards are just as beneficial just need to know how to manage properly
Cashback on all purchases is like shopping with coupons??? WHat about interest?? Everything you mentioned is EXACTLY how people wind up in more debt than they can handle. $200 cashback if you rack up so much debt in specific time? Again, it is encouraging you to spend money you don't have and will have a harder time paying off and would be more likely to have to carry a balance for a longer period of time.
Credit card companies have war gamed this out and they are in it to make money not break even or lose money. There is ALWAYS fine print.
@@impalamama7302This has to be bait.
With you mean with build credit?
@@impalamama7302it is called use your credit card like a debit card and immediately pay everything off and don't spend more than you have and you will never be in debt and have all of the benefits
Paying off your credit card debt on time helps build a credit score which helps with getting car loans, home loans and the like@@takumi6321
I just wanted to say thank you for sharing this. Because you're right. The worst thing that you can feel is hopelessness. And I hope that someone who is on the verge of losing hope finds *sentinel Recover* and realizes that as long as you're still alive and breathing, there's a chance, there's HOPE that the future is brighter then the present day.
My school actually started teaching us about finances like Credit and Debit cards, it was a short unit but it definitely helped
“Debit or cant have it”
“Credit? Can you pay it?”
Answer: get both, but pay off you credit card bills on time, and try to keep you utilization ratio under 30 percent 😅
Your credit score grows even at 75% and when you're a newcomer to the 1st world, you often need 200% bc the limits are insanely low at 1st
@@pcoverthinkhe’s talking about 30% of the limit. Having a high utilization rate hurts more than it helps at any stage. I started with a 500 credit limit and after a year with my company they increased it to 2500 and my score is a 720 (started at 500). All it takes is discipline and consistency to build up your credit limit and score.
Gohar copied your comment and pinned it lmao
@@arnhav6090yeah😂
dude straight up stole this comment and pinned himself
This credit score stuff seems like a way to get people addicted to banking services in order to more efficiently exploit them later.
Perhaps it wasn't intended. Perhaps they just won't admit that it was.
@@GaboH-h7si guarantee you that there would be a lower interest on the mortgage if you had a credit score. At least in the US.
It doesn't even work as advertised. Paying the bills on time wouldn't improve your credit score as the bank sees you as a deadbeat. No interest = no money for the bank and affiliates.
I've never had a credit card yet my credit score is perfect. I've taken out a loan once and paid back in time, and used a debit card for years, so I assume it just built up slowly while a credit card paid back diligently will just raise your score faster.
Or the people who know how to play the game can exploit the bank back... just need to know the rules
Credit cards are great if you use it wisely. Credit score went from 425 to 778 in about 2 years.
"Luckily he pays his bills on time"
Bro I cant even do my homework in time😭😭💀
Congratulations, by simple observations you have just avoided falling into debt
Then you probably shouldn't have a credit card.
They’re both useful in different situations lol both are needed
Not rly a debit card can do everything a credit card can do but without the severe crippling debt part
@@harnkhall it can’t build credit and it can’t give rewards
@@Chronixx6you lose those reward when you have to pay the bank second the rewards are. Very tiny and take time to accumulate third you don’t need credit when you have money that you make that you spend accordingly
@@harnkhallAs long as you pay it back you’ll be fine, no debt. Don’t spend what you don’t have, and enjoy the cash back
@@Messup7654what about your credit? There’s nothing wrong with having a CC if you’re responsible, the key is don’t spend money you don’t have in your bank account.
"Managing your finances wisely is key to financial freedom. It's great to see someone who pays their bills on time and avoids unnecessary debt."
Yo it's a chicken
Well if it isn't chicken
turbulence
An important difference is if the card is misused, as in the case of identity theft. The credit card is much easier to report fraud and charges will be wiped, but if your checking account is drained through a debit card, it is much harder to recover those funds. If you aren't good with credit cards consider a charge card for the same protections, and not having it tied to. an account that holds a large sum of money.
You still spend your money , just 2 weeks down the line lol
There are 3 advantages of Credit card :
1. If money is stolen from your credit card and you report on time, the bank does everything possible to get the money back (as it was their money technically) and thus there's more protection with a Credit card if you report the fraud just in time... But if money was stolen from Debit card, bank would not even care much as it wasn't their money...
2. There are massive discounts you can get using Credit cards
3. If you have good credit score (you need to pay your bills on time anyways if you have a credit card) then you can get loans at good interest rates...
Still Credit Cards have problem if they are overused or you forget to pay bills on time
Otherwise it's fine
Debit cards have their own benefits too...
The important part is paying the bill on time
no its to get a real job buddy
@@MoiJsuisTropBeauPourToi you would need a job to pay your bills on time
Ok but can i just thank you for telling me the difference between these 2 cards. Because I always ask my siblings the difference and they go: "Oh ones for interest and the other is for you to keep" and it would still be so confusing for me so thank you!!!
you still need both though because you do want good credit. i advise you to use a credit card for recurring payments like subscriptions and your debit card for day to day use
@@hotcrispybiscuits I don't have a debit card. I've never needed one. I do have a few credit cards. I do not have any credit card debt.
I disagree with you about using a debit card for day to day purchases. I use my credit card for everything, gas groceries clothes eating out. I pay the full balance every month. I have the money in my bank account to pay for these things, but I get rewards points for all my purchases. That saves me a bit more money as I use it for purchases.
Also if you buy using credit. A lot of banks have an option where, if you didn't like it and the store refused a refund. They'll refund you instead. Some other credit cards have stuff like built in car rental insurance.
Its much better to use credit for the points if you're able to completely pay it off at the end of the month
Another (admittedly slight) benefit of using a credit card is that in between spending money and paying off your bill you can be earning interest on it because you spent the bank’s money, not your own
They all come with their benefits and drawbacks. Debit cards spend your money and avoids overspending, while credit cards allow better cash flow by paying the bank later.
Theoretically, credit cards is better if you pay back on time and avoid paying only the minimum payment, but debit cards allows you to spend what you have instead of what you will have.
I do have both cards, and I use credit cards for my groceries shopping, enjoying more cashback than if I use debit card, meanwhile using debit cards for online purchases because somehow my debit card waives 2% transaction fee for overseas/foreign currency transactions 😅
Pro tip, when you buy something with credit. Pay back immediately. It works for me.
Get both and make small purchases with the credit card to build your credit score
Debit card, I'm not in America, I'll save and build my house.
inflation
sure buddy you can do that nobody is stopping you
but here what happens if you use credit card
you can buy materials as many as you want but make sure to pay on time
so you will finish building your house asap
when you save and build you will take longer because you are waiting on your salaries for months to years
you will finish it longer plus inflation over the years piling up
to the point you will never be finish
so using credit/loan makes it easier that you can pay monthly
but you had your house asap
and the bills you pay is fixed because you already built your house and the materials are not increasing by the time you finished your house
@@francisjosephcutamora8530A credit card won't pay for a house unless you're a millionaire and a dumbass. You never go in debt on a credit card which you cannot pay off by the end of the month, that's where the high interest gets you. What you do instead is create a savings account or invest in something else, there you save up for a down-payment and get a mortgage with a better interest rate. Credit cards are nearly useless anywhere outside of the US, because there is no credit score and very little benefits.
@francisjosephcutamora8530 I don't like the idea of paying loans. A mortgage in country take a good chunk of your pay check and if your not a government worker or someone whose sure of their money each month then it could be difficult. Most people here just don't want to bother worrying about paying back that loan with the interest so it's easier to just save a little money and slowly build the house part by part. Build a small part that you can live in and then slowly add on. People do borrow mortgage but the regular everyday people just do this. At least that's what I'm planning to do.
@@PrincessPresident as i have said no one is stopping you but
you might want to reconsider but sure you just save and build a small house
but you could also loan and build small house
we hhave the freedom to do so
but i think you will finish it longer without loan
but at least build a house in loan or by saving is good goal
own house is better than renting
credit card is still better even if ye not american. Source: not american here. especially if it has cashback. cause on debit card, ye just never getting anything back.
The only reason I started using my cc for everything was the cash back rewards. I always used a debit card but in the past year or so, I've gotten hundreds back on my daily purchases, so I think it's a win - it's paying for stuff with one extra step (paying it back) and getting a reward.
Way better than just "paying" imo
pov: ur broke
Edit: Just bc u don’t understand my sense of humor doesn’t mean u have to start a war in the comments js move on 💀
And I am too
How does this make sense? POV? that means point of view, this video is showing a difference in debit and credit
also womp womp
@@danielandres4358ong
@danielandres4358 no what they mean is that POV you're broke so you won't be able to have a credit card cuz you will not be able to pay back what you owe to the bank but also you won't be able to have a debit card cuz you don't have any money to spend 😂😂
@danielandres4358 no kidding Sherlock everyone knows what POV means
Get both, use credit card like a debit card, only spending money you know you have. Makes your credit score good plus earns cash back
Can we just appreciate how good his art is?
Paying back the credit card uses your own money,
one more piece of information left out
Do NOT use a debit card. A friend of mine had hers skimmed. 16K was stolen from her accounts, she eventually got it back, but it took 6 months.
And if you're not in the America don't use credit card. It may damage your credit history by just existing
@@stannumowl Your statement is 100% false
Why is money so confusing. It should be go to job, get money, spend, go to job, get money 💀
the key is to treat your credit card as if the money you're borrowing from the bank is already gone from yours, as much as you can possibly help it. personally since i get 10 withdrawals per month from savings, i will put all of my spent credit card money into savings the second I'm able to, and it's still there if i really need some of it between pay checks
Bro summoned the cubing community 💀
No he did not
@@goldvinity5989 Are you a cuber?
A WILD CUBER
@lpfibrethat's an rs3m ☝️🤓
Ye as a gan 12 main i ❤ the 11m pro
Debit card sounds objectively better
I mean, if you can pay off whatever you spend on your credit card, it's not cuz you're missing out on cash back bonuses
@@DarkShadowBlade2389 maybe
debit almost offers 0 money protection unlike credit card who will fight their lives for it. Some countries also offer insane credit card bonuses while you almost earn nothing with a debit card. Credit card is better in every way as long as you NEVER get balance you've forgot to pay
@@kklc5477thats just totaly wrong lol. They wont care ether way. You will be the only one losing 😅
That’s just weong
My tip : get a debit first, and then a credit. However, use ur debit 80% of the time, and a credit only 20% of the time. Also, make sure you set a goal you cannot spend over with your credit card, like 800$, or 1000$ depending on your condition.
Edit : 8 month older version of me here.
I forgot about credit score when making this, so it’s better to start off with debit card and slowly build your way up to credit card, when you realize you can keep track of your bills. Start using ur credit card for cheaper things and KEEP TRACK OF EVERYTHING B4 U MESS UP.
Better tip don't worry about the credit card
now what is the point of not using credit card all the time?
@@SxcialAnxietyJust people being stupid.
Use your credit card as much as you can, you earn cash back and banks loves if. + Is much easier and convenient, you can easily add them to your phone with apple pay and Google pay.
If your are too dumb and unfit for society ( what if I spend too much money with credit), stay at your mom's house.
There is not a single reason to use your debit card when you have the choice of both.
And btw, debit doesn't always protect from overspending: you can sometimes overdraw, and fees can be much higher than credit card interest.
@@briannormant3622im 15 and i dont know jack shit about anything but in 3 years what card is a good starter
@@SxcialAnxiety Most people are dump and Credit cards push your paying into the future till the day comes the bank says : ok you have to pay back now!
And this is how the finance crisis arround 2006 happend. To much Credit for people who should not have a Creditcard at all
I have a debit, credit and savings account.
I live off of my credit card and for the time that i don't yet have to pay my credit card, i store my money in my savings account which earns me interest which covers my credit card fees and then some.
Its best of all worlds
Credit Card is used to buy everything, Debit Card is used to buy what your credit card bought 😂
"Luckily he pays his bills in time"
Just give the debit one...😭
Bro is helping us In a short video more than a school does in 5 years and helps us whit real things
Hey just so you know, I had great credit by using a credit card for years, only to when I comes to buying my own car they said, hey we don’t care how good your credit score is, you haven’t taken a loan out for a house or car yet so we’re gonna give you really high interest. Which I think is bull
In my 17 years of living I finally understand how these cards worked
“LUCKILY he pays his bills on time”
Debt cards ensure you don't go into debt lol
whats a debt card
@@imveryaverageatpayday58q9 it's the card where you can only spend from the money you own,
This ensures that you don't overspend alot of money because you are limited by your wallet
Debit card @@imveryaverageatpayday58q9
I love debt cards 💀
No bro change it back, keep the joke going dawg
Edit: Thanks
A credit card is not really the banks money, it's a loan against your money and always has interest added on. Especially if you have no credit you could be paying 25-30% more than if you just bought the item yourself.
Credit is a fancy way of saying debt.
It’s more complicated that that.
@@killugonkillugon7270
its not tho.
using a credit card means you buy stuff and the bank pays for it then sends you the bill later.
youre literaly indebting yourself to the bank that your account is on.
Someone doesn't know how to manage their spendings 😂
if you’re stupid with money just say that
Bro 💀
*buys bank with its own money*
"wachu gonna do? Tell your manager?"
UNDERATED COMMENT
the manager is the one who sold it to u 💀
I be paying the bank with their own money 💀
Real
that’s what I’m hearing lol
Huh?
Infinite money glitch
“I used the cards to pay for the cards. It nearly killed me.”
That is a REALLY professional cube.
Plot twist, just create a bank and then get your own bank card
Ye and how much is it to build one
@@DaNNi2774probably 5 dollars
@@DaNNi2774 it’s only a couple billion
@@fayenotfayezillion*
How is this a plot twist?