1. You can leverage others people money 2. You can borrow money for free 3. You build up your credit score credibility 4. You get rewarded 5. You are better protected
@@MikeThePike316 - not really, there's alot of things credit cards can do that debit cards cannot, i.e. extended warranties, price protection, cell phone insurance, primary or secondary auto rental insurance, travel insurance, lost luggage reimbursement etc. Not to mention credit cards can improve or establish your credit score. Debit cards do not.
@@docsays - I agree, but how necessary are those added services tho? I wager it's as necessary as giving a Texan free Volcano insurance. Also, credit scores only matter if you're trying to go into debt. I prefer cash. Different strokes for different folks, I guess.
@@MikeThePike316 - some employers and apartments require a good credit score. Also, the average person doesnt have $300 - 400k in cash to buy a decent home, thus they need for credit. yes, the insurance perks on CCs are nice, but i enjoy the 2-5% in cash back i receive from using a CC to pay for bills or expenses that must be paid. But yes, for those who cant handle the risk they should keep using a debit card.
I think the mistake people make is using your credit card before you have the cash in your account. I think the smart thing to do is use your credit card like your debit card. Spend the amount that is available in your bank account and then pay it off right away. Like literally the day of your purchase. You earn points and you don't have to worry about being late or anything.
I'm going to let you in on a secret. How much you spend on your credit card doesn't necessarily matter as long as you pay it off before it's reported to the credit bureaus each month
You don’t have to do that. Just don’t be a crook. If you agree to the terms of your credit card and you adhere to them, then you are not a crook. To me, people who own debit cards and/or cash only, are prone to being crooks. But obviously there are crooks who use credit cards, and give them a bad name.
I have the discipline, but at the same tome I dont like to play with fire. I prefer only spending the money I actually have and learn to better budget my finances.
Don't use a credit card for daily small purchases but things that are like getting items for your home or a plane ticket. But the key is pay off the amount you spent in the month you spent it.
Yeah I THOUGHT I was making more money than the interests charged too, until I collected a hill of debts before I realised. It is costing me my wedding and my marriage now.
I only use my credit card. A few years back one of my dads friends said " why are u using ur debit card, u get charged fees and dont collect any points". That's the day my financial education started. From learning about credit cards, to now stockmarket/option investing. Wow, what a journey and process
I'm scared of using a credit card please put me through I'm confused right now, can someone use credit card for business? Buying and selling please tell me
1. Credit card IS NOT your money. 2. You have to pay interest for credit card money. 3. You have to remember to put money back to your credit card during grace period or else you'll pay interest. 4. Credit card IS NOT the only card that brings you rewards. Debit cards reward you too. 5. Credit card IS NOT the only card that can be better protected. You can use extended protection with you debit card.
Yea! Credit card things are more like legal scams! I can easily ask my bank for premium debit card or have a silver mode bank account( instead of regular savings bank account) and easily get benefits same as credit card.
I think after watching this, I believe you can save more money in your bank account by using Credit card. Put a limitation on your Credit card, be sure the limitation isn't more than your income and covers every primary needs in 1 month. Then pay everything with your Credit card until it reach the limit. Boom, you saved some money in your bank.
The key to credit cards is self discipline. Don’t spend all your money in your bank account and spend you credit card, only spend your credit card and only use the debit card to pay off the credit.
Debt can be leveraged if you know how the game works. You will never find any seriously wealthy person that has not used debt. I have tons of debt. I could reconcile all my assets to pay off all my debt and immediately the rate of the growth of my wealth would decline significantly but I would have no debts with free and clear assets.
Same I am 18 my mom doesn’t know I have one since she doesn’t like them and said I can’t have one she said I can have one when I move out but she doesn’t seem to understand you need a credit score to move out xD
I bought a cc from *Ericroboti* on telegram best vendor I know and very trustworthy. she sells cc,fullz,Bank,Drops,and Dumps and she also make PayPal transfer at good rate
I have started my credit journey with my first credit card last year. Also, being an authorized user from my parents actually helped build up a record even if I dont use the card or the fact i didnt have a credit history in the past.
Credit cards only work until the income decreases or stops, no matter the reason for the decrease or stop. I've seen so many people who boldly claimed to have mastered the credit card to ultimately see them buried up to their neck in debt as a debt slave because they were laid of their job or the market caused a decrease in business.
I definitely use my credit cards for both building my score and getting points. And yes I do pay them off in full every month. I’m going to use them too for my future business.
Keep your Credit Utilization under 30% and your Credit Score will Jump. Believe me, I learned the hard way now I'm hip to when to pay and how to pay. Great Video!
All those reasons you mentioned is why I use credit cards for 99% of my purchases. The biggest one for me is those sweet reward points I get back and I even count them as one of my income sources as I’m always able to pay off my credit card statements.
A credit card is good when you pay it back on time. Some people can't get approved for one credit card even though they want to build it up through expenses. All the reasons you mentioned are great!
I don't disagree. I have credit card and I always pay in full before due date. Credit card companies don't earn from me! They keep on increasing my credit limit. But Im not taking the bait to spend more. :)
Paying off the balance at the end of the month is the same thing is paying with a debit card. The money is going to be gone either way. And you expose yourself to 28% interest. He's wrong.
Number 3 - Is the reason I am considering a credit card as my life has been a financial disaster. Now I am starting to build credit again. With good money practices now being used I am wondering if having a credit card, used wisely will help me with this goal.
I always use cash and debit card for everything. Credit cards may be better for some small percent of people, but way more people get burned from using credit cards than the people that benefit from them. The whole business model of credit cards is for the credit card companies to make money off of the credit card holders. Their methods of milking people for money is way more malicious than any debit card.
I agree with you. It's the financial education that's lacking. I've been using credit cards for 10+ years and have always paid the bill on time. It's the discipline that matters. I've never a paid interest on any of my credit card purchases and I use my credit cards for literally 80% of my expenses, including rents. If you pay 100% of your bill on time, every time, the credit card companies don't make money out of it, you do.
@@Keepit-dy3yq thats when the credit card companies make money. They want you to spend the money you dont have, and then ask you pay interest on the item you didnt need. Break away from this cycle. Buy everything from Credit Card only if you can pay 100% of the bill value without paying interest to the bank. You will be amazed at how powerful this simple payment technique is. You save money by earning reward points and cashbacks and you never pay interest on any of your purchases.
The line here is - PAYING off the balance every month. If you cant do it, dont have a credit card. Simples. Debt free from credit card is the best feeling ever. Not going to apply for a credit card ever again.
With Credit Card Yes you can leverage other people's money, but it is short term. You also need to leverage to ensure you are working that money as well rather than spending it on holidays for example. Debit card helps you control money if you feel like you are spending out of control on credit card. There is no right or wrong, different tools for different people.
I switched to credit card about a year ago. My credit has gone up nearly 100 points because of it. I also make money with them from the cash back. I pay nothing in interest because I pay it off every month. Wish I had started this years ago. My daughter is turning 17 in a couple months. Going to add her to my account and get her her own card I'll control. So when is ready to move out she will have decent credit.
I've traveled a lot for business and it's great to use the company credit card because I get reimbursed for my expenses every month and I can pay off the balance entirely. It's like getting free credit score upgrades and reward points every month.
Beware VISA has a service called account updater. If you cancel a card and get a new one the service will give your NEW card info to any merchant enrolled in the service. This will be done WITHOUT YOUR CONSENT or knowledge. You will not be notified that it happened but you might have agreed to it in the tiny writing you never read when you set up the account. It is billed as a service to you but since you have to put in your new info anyway when you log on to the merchant site again it is really a way for the merchant to keep its hands in your pocket more easily. Watch closely when you set up accounts for reoccurring billing to make sure you really want it.
Recently I have been making smaller payments on credit cards a few times per month, before I get notice of my final monthly bill. Then, the amount at the end of the month won't be as large, and I know exactly where I really stand in my checking account as the month goes along. The bonus rewards won't be going away, and they will go right back as a credit to my credit card. I love that. It is like an extra income that's helping me pay the bill. I love this video, Dan, thank you! I have never used a debit card for purchases intentionally. Twice, my debit card matched the color of my credit card and I used that accidentally! I try to have two different color cards; one for the credit card, and one for the debit card. Much of the time, I leave my debit card home.
Hes actually right... I've had 5 cards, I keep them at 30%, and pay my payments on time. My credit score is pretty high due to using a credit card making regular purchases.. Most of you criticizing most likely have credit card debt, you're DTI is terrible or you dont qualify for a card at all..
@Emad Ahmed You could use it on what you'd pay for in debit at that time and just pay it off immediately once it is processed to ensure you don't spend over. Also having an emergency fund helps if worse comes to worse and that's the case even without having cc.
Simple reason to NOT use credit card: its extremely high interest rates!!! Even if you repay in full every month, it is still a trap, because one day you might not be able to. Also, if you pay off completely at the end of the month, whats the difference with debit cards then? To say “you are leveraging on someone elses money” is a load of BS. This statement alone shows Dan Lok is not to be trusted. I used to be his fan, but i was ignorant back then. Not anymore.
you're earning reward points & cashback which debit card doesn't provide, on top of that there are many other benefits, but I agree with the risk of not paying off in time, since many people been laid off during covid. would be hard to get out of debt in that case.
@@Rick-kv3gl but why use credit card in the first place when you (have the money) can already pay it off with your debit card. And isn't there an interest rate in using credit cards?
I think a debit card is useful if you can't control spending. Otherwise, the protections on credit cards far outweigh that limitation, and the perks of credit cards also tip the balance in their favor. But, as Dan Lok says, that's only if you pay it off every month.
use credit wisely... 30 - 45 day interest free... pay it off every month.. or if 'larger purchase' over 6 weeks pay it off. Even if you take 2-3 month to pay off provided the majority paid off within the interest free period, tiny interest is paid. ALWAYS pay on time! ! ! If paying over 2-3 months, do not use again in this period, as 'interest free period' does not include new purchases if there is already a balance. I use low interest/ no rewards/ no points so getting rewards does not apply but the interest is 5-10% less! The 5th reason of 'insurance' is the most important.
All 5 reasons. I even start a small business using my credit card and pay on installment. My small business earn enough to pay my bills while also earning. So basically, I acquired it for free.
I don’t blame my mother for now showing me right financially but I believe the only she had to do was bring me to this world of opportunity. And she did a great job
Never got a credit card only debit card... bank offers it to me but never really thought I was old enough to wisely use one. Thinking a card is a card.
Dude I can’t believe I’ve only had this epiphany about getting a credit card today... like what have i been DOING all my life with just a debit card smh
Credit Card vs. Debit Card: The Basics So what’s the difference between the two? How Debit Cards Work Your debit card is basically like a plastic check: When you make a purchase, it takes the money directly out of your bank account. So, if you try to spend $500 but only have $250 in your account, your transaction will be declined. Because the money is taken from your account as soon as you swipe, you won’t get a bill and you won’t pay interest. You might, however, face overdraft fees if you spend more money than is in your account. Debit cards also work as ATM cards, allowing you to take cash directly out of your bank account. How Credit Cards Work Your credit card, on the other hand, is like a loan: When you open a credit card, you’re approved for a certain line of credit. Also known as a credit limit, a line of credit is how much you can spend before your card is “maxed out” and can no longer be used for purchases. Your credit limit is based on your credit history and income; the stronger those are, the more the bank trusts you and the higher your credit limit will be. Each month, you’ll get a bill for the amount you spent. Though you’re only required to cover the minimum payment (and not the whole balance), you’ll pay interest on whatever amount remains. Because credit card interest rates are usually very high, we recommend paying your bill in full each month to avoid interest fees completely. 6 Important Advantages of Credit Cards If you only use your debit card, you’re missing out. Here’s a brief overview of what credit cards can do (we’ll take a deeper dive below): Help you build positive credit history Provide protection if your card is lost or stolen Offer rewards on purchases you’re already making Provide additional benefits, like extended warranties on electronics Give a “free” month-long loan (when you pay your bill in full) Provide more flexibility when booking a hotel or renting a car
If you're so worried..... You can always use your credit card as a debit card... as in don't buy what you can't currently pay off right now, but still reap the advantages of a credit card. All it take's is a transfer and weekly/monthly budget. If you have no self discipline or a toxic relationship with money don't bother!!
Probably is some kind of collaboration or something... Yes... What Dan said is true. But on the other hand everything he said can be achieved in other ways as well... Plus there is a propaganda of using cards and personally I don't like it. If I want to borrow the damn money I would go in person... Nowadays all the company that sells something useless are trying to get their clients by creating fantasy in their heads and the credit card is a convenable way of instantly getting the thing without hesitation. And even if you actually have discipline still at some point you will lose control. Because that's what they are selling you: emotion
@@DanLok A truth born from your very own subjective experience. Even if we assume that is the objective truth then there's still plenty of us plebs lacking the discipline as you put it so at the end of the day better a idiot then a idiot in debt.
Credit cards aren't better than debit cards. Because most people are living paycheck to paycheck and can't really afford to pay that debt off. But with debit cards they pay it off once and thats it. But thats only if they have alot of money in their account. Credit cards are interest eating beasts who don't care about the average consumer and would take advantage of the person who doesn't know how the value of money works and how to earn that money themselves so they wouldn't have to payoff or be in the debt trappings of credit hungry companies.
I had this debate with a buddy of mine because he loves debit and i told him about the dangers of using debit over credit. credit is far better if you pay the entire balance off each month.
yes credit cards might be good for businesses. but for personal is not good as may not know how much you spend and could get into debt to be paid over time. and debit cards money comes out right there very good. as you are living within your personal budget.
I get it but I don't get it. Because in the end aren't I just initially using my money to pay it off? I don't see the difference between that and using my cash to purchase from the start.
in simple words -credit card deducts money after some time ,so if you havent gotten your salary or you have exhausted it for this month, you can just swipe a credit card for a product and can pay it next month, its like a loan without any interest if you pay it properly next month
Also, if you ever want to buy a house or a car, a good credit score is something that’s very useful. Paying off your card on time will raise your credit score. Cards also collect free points which accumulate surprisingly fast and they can be used for plane tickets or other purchases. Debit cards charge fees and don’t offer anything else.
@@djmagn3m691 still can't get my head around it, let's say I've opened my credit card and been approved for 10k credit limit, I spent 200$ first month and pay it off when it's due, so each month I'll get a bill for the amount I've spent only? No hidden costs, or interests? What if I used my credit card for installment purchase, if pay off in time, can I avoid interests completely?
There's NO WAY you are going to convince me that for example, somebody has $100K on a VISA DEBIT which is routed to their savings and checking account via a credit union that is giving you 2.2% interest on your deposits is not better than having a $100K on a VISA credit card with a 20% APR rate! LOL If I'm wrong, then I stand correct and I humbly submit to your financial advice. Cash is king, credit is only king if you are using it for business purposes. As far as your personal expenses besides travelling it can get you into a LOT of trouble.
@@logandavis954 Exactly, with a credit card you have to pay them back anyways and people who are irresponsible with their money will probably end up in more financial struggle than before as they now have to owe the credit card company more money. With debit card you are in control of your finances.
@@djshockafrica4330 right, but with credit card you lose your discipline as you can just keep borrowing money. Debit card you really are having to develop financial discipline as you are in charge of your money and no one else, so no silly spending will take place as you know that money will be gone as opposed to credit card where you borrow money to allow for silly spending.
As a Dutch person, this is very interesting to see. In the Netherlands using a credit card is way less normal than in the USA, and credit score is also not really a thing here.
Not true.... if you have a debit card they will give your money back, they will investigate the matter,the bank resolve the matter I know because it happen to me. The bank always monitoring your activity and if something look suspicious they will call you and block the card until they talk to you and do an investigation right away. I AM VERY PLEASED WITH MY BANK!!!!!!!!!
I usually like most of what you say but this time I must disagree. Telling people who are living paycheck to paycheck (most of your audience) that you just need to have the discipline to pay off the credit each month is kind of like telling alcoholics that they just need more discipline to not drink while being around alcohol. In that situation, it's better to be proactive and not put yourself in situations where you will be tempted. Cut the credit cards and pour out the alcohol at home. Even paying with cards in general is problematic. There have been studies showing that we don't even see "the future us" as the same person. So when we pay with credit, we are essentially pushing the bill (aka the consequence) to "someone else". Which of course makes it very easy to overspend and leave the debt to "future you" (that guy can handle it).
Thank you Sir Dan Lok, I got my first credit card, I will apply this advice. My parents are scared of credit and don't recommend me one I got a card in secret I need my future!
But Dan I believe that you should have money saved for an emergency if something like your car were to break down, because cars do from time to time. That way you won’t have to fork out any money from checking’s.
Credit cards are good for those who especially know how to use them. I just don’t go beyond my limits, and I pay off the amount due on time that way building my credit score. Another great thing is that you have more time to accumulate money to pay things off through initial borrowing. Vast majority of Americans are just really bad with money.
But Dan The majority of people are broke because they use OPM but they never use them to actually make money. And the idea of credit it became a cue for laziness... When you are dressed like a kid in your bedroom browsing on the internet and you want to buy something online with your credit card is almost certain that you are going to buy something useless. In contrast if you would go in person to borrow OPM, dressed in a suit and you have a plan on what are you going to do with thy money, you are more likely to use the money on something useful.
People seem to forget that Debit cards are really dependent on your bank, my card is linked to my local Credit Union, I dont get much interest at all but I dont ever pay a monthly. I doubt I'll ever look at using credit due to not exactly seeing it in the right.
Credit card is a no brainer, but only for people that are “deciplined”, paying the bills like he mentioned in the vids. You are spending those money anyway, why not spend them with credit card that also comes with those benefits? But again, don’t use it if you can’t control yourself
I'm switching to the method of using credit cards like debit cards. If you can't handle your money and know you're not going to pay it off in full or on time then clearly that method may not be for you. But credit card companies have taken care of me much better than a regular bank that I have debit cards with. Credit cards aren't the devil people..y'alls impulse buying and not paying it back is.
Credit cards are for people who has discipline only. Don't use it if you cannot make full payment. Otherwise interest is much more than the perks they give out.
It's all to do with self-control and discipline. It's like alcohol, if you use it right then it's fine, but when you lose control it's a downward spiral. Using a debit card is risk mitigation if you don't have solid self-control. I take it Dan Lok doesn't have a joint account and is good at managing money. Think of debit cards as training wheels - are people with bikes with training wheels stupid? Only if they could ride the bike without them. However if you know you can't ride a bike without them then you're stupid not to use them...
Absolutley correct on all counts. I've been doing this for years. Say bill new balance is 1500, 21 days later it's up to 2500, pay only the 1500 no interest. Do that every month it's a 2000 interest free loan indefinitely. The more you use it the higher the interest free loan.
Here’s a scenario: you need to get down to a village. There are 2 paths. The first (debit card) is through a field. The second (credit card) is around the edge of a cliff. Both paths lead you to the same place, but One path offers you a reputation that opens some doors (house,shiny cars etc) to your life. How badly do you want things in life? Things that you leave behind one day. If you don’t make a lot of money consistently be careful about credit cards. Life happens.
When I use my credit card I ensure I have the money in my bank before I make the purchase then I put it into a pot marked spent so I will always have the cash to pay off the balance even if the worst happened
You’re not really ‘leveraging’ other people’s money if you have to pay it all back every month. Borrowing others’ money just to then pay back using your own money seems unnecessary, just use your own money to begin with and avoid the bills
Well, you need to build a credit score if you want a low interest mortgage or loan so it's worth it! You can pay 26 percent interest on a new home of you don't have a credit ratings YIKES! It's long term thinking rather than short term. You don't need to use credit for everything! Just enough to build a good score.
If you need a credit card your not responsible and not smart with your money. I just have 1 debit card it has served me for 10 years and iv been alright no debt. If credit card companies and banks dont want you to be in debt then their buisness would collapse. The narrative of the credit score further pushes that belief that your responsible for things you cant afford. It reinforces that psychology that you "need a credit card to get thru life" Please be aware
Dan Lok I agree with you that when you use your credit card, you're building up your credit score credibility ,you get rewarded, and you're better protected with a credit card then you're with a debit card.
1. You can leverage others people money
2. You can borrow money for free
3. You build up your credit score credibility
4. You get rewarded
5. You are better protected
Rich Daddy Gangsta thanks dude
Credit cards have 20 percent interest rates and other hidden fees, it's best to avoid them at all costs
It's not your money .
I have a stupid question why it is borrow money for free?
@@maiquyhuynh7927 There ain't no such thing as a free lunch.
Credit Cards can be your best friend or your worst enemy.
Like anything else, you must have discipline, self-control & maturity.
I bought some credit card from *@Darkearlsimmons* on *telegram* and it was quite real and all his card were valid
Credit cards are pointless. Debit cards can do everything credit cards can do except get you in debt.
@@MikeThePike316 - not really, there's alot of things credit cards can do that debit cards cannot, i.e. extended warranties, price protection, cell phone insurance, primary or secondary auto rental insurance, travel insurance, lost luggage reimbursement etc. Not to mention credit cards can improve or establish your credit score. Debit cards do not.
@@docsays - I agree, but how necessary are those added services tho? I wager it's as necessary as giving a Texan free Volcano insurance. Also, credit scores only matter if you're trying to go into debt. I prefer cash. Different strokes for different folks, I guess.
@@MikeThePike316 - some employers and apartments require a good credit score. Also, the average person doesnt have $300 - 400k in cash to buy a decent home, thus they need for credit. yes, the insurance perks on CCs are nice, but i enjoy the 2-5% in cash back i receive from using a CC to pay for bills or expenses that must be paid. But yes, for those who cant handle the risk they should keep using a debit card.
20 seconds into the video and I’ve already been called an idiot.
We all have my friend, we all have 🤣
You and me both.
HAHAHAHAHA
Sorry buddy
😃😃😃😃
I think the mistake people make is using your credit card before you have the cash in your account. I think the smart thing to do is use your credit card like your debit card. Spend the amount that is available in your bank account and then pay it off right away. Like literally the day of your purchase. You earn points and you don't have to worry about being late or anything.
Exactly
I'm going to let you in on a secret. How much you spend on your credit card doesn't necessarily matter as long as you pay it off before it's reported to the credit bureaus each month
You don’t have to do that. Just don’t be a crook. If you agree to the terms of your credit card and you adhere to them, then you are not a crook. To me, people who own debit cards and/or cash only, are prone to being crooks. But obviously there are crooks who use credit cards, and give them a bad name.
If you have the discipline to pay off credit cards every month then it’s a no brainer to use a credit card.
Well said
Else it is a good reason that you should not use a credit card.
@Rashed Arman are you stupid😂
I have the discipline, but at the same tome I dont like to play with fire. I prefer only spending the money I actually have and learn to better budget my finances.
Don't banks have auto debit? My money gets debited every month at the end of the month.
Don’t use credit if you are broke or poor. That’s the answer
I've learned my lesson, and now I'm regretting it. I've got a lot of fixing up to do.
Don't use a credit card for daily small purchases but things that are like getting items for your home or a plane ticket. But the key is pay off the amount you spent in the month you spent it.
Yeah I THOUGHT I was making more money than the interests charged too, until I collected a hill of debts before I realised. It is costing me my wedding and my marriage now.
@@KathyHagle paying off small things the moment you buy it with your credit card can up your credit score
Or just already bad with money.
I only use my credit card. A few years back one of my dads friends said " why are u using ur debit card, u get charged fees and dont collect any points". That's the day my financial education started. From learning about credit cards, to now stockmarket/option investing. Wow, what a journey and process
I'm scared of using a credit card please put me through I'm confused right now, can someone use credit card for business? Buying and selling please tell me
Lol this statement was awesome until you mentioned options... hahahahaha good luck with that my friend
And how about your current situation?
@@pemudaindia5709 he probably lost it all in speculative stocks, maybe even in debt because he used margin.
@@rorym8543 lol😂🤣😂🤣🤣
1. Credit card IS NOT your money.
2. You have to pay interest for credit card money.
3. You have to remember to put money back to your credit card during grace period or else you'll pay interest.
4. Credit card IS NOT the only card that brings you rewards. Debit cards reward you too.
5. Credit card IS NOT the only card that can be better protected. You can use extended protection with you debit card.
Yea!
Credit card things are more like legal scams!
I can easily ask my bank for premium debit card or have a silver mode bank account( instead of regular savings bank account) and easily get benefits same as credit card.
I think after watching this, I believe you can save more money in your bank account by using Credit card. Put a limitation on your Credit card, be sure the limitation isn't more than your income and covers every primary needs in 1 month. Then pay everything with your Credit card until it reach the limit. Boom, you saved some money in your bank.
This is straight genius
This is also my strategy
but you can do this with a debit card and not have to pay the interest? this is stupid
@@DnBastard no interest if you pay on time
Damn you just taught me something
The key to credit cards is self discipline. Don’t spend all your money in your bank account and spend you credit card, only spend your credit card and only use the debit card to pay off the credit.
On point 5. 'You are better protected', I have had the bank refund a fraudulent transaction back into my debit card account multiple times.
There is a difference between debt and leverage
Debt can be leveraged if you know how the game works. You will never find any seriously wealthy person that has not used debt. I have tons of debt. I could reconcile all my assets to pay off all my debt and immediately the rate of the growth of my wealth would decline significantly but I would have no debts with free and clear assets.
Been using credit cards since I was 19, my parents are scared of credit cards just like Dan said. 😂 guess I’m doing one thing right. 👍👍
How ?? I will use my dads debit card
Same I am 18 my mom doesn’t know I have one since she doesn’t like them and said I can’t have one she said I can have one when I move out but she doesn’t seem to understand you need a credit score to move out xD
I bought some credit card from *@Darkearlsimmons* on *telegram* and it was quite real and all his card were valid
I bought a cc from *Ericroboti* on telegram best vendor I know and very trustworthy. she sells cc,fullz,Bank,Drops,and Dumps and she also make PayPal transfer at good rate
They are not scared of credit cards, they are scared of themselves because they might mess up. Kuddos to you for using your credit card responsibly!
I have started my credit journey with my first credit card last year.
Also, being an authorized user from my parents actually helped build up a record even if I dont use the card or the fact i didnt have a credit history in the past.
Credit cards only work until the income decreases or stops, no matter the reason for the decrease or stop. I've seen so many people who boldly claimed to have mastered the credit card to ultimately see them buried up to their neck in debt as a debt slave because they were laid of their job or the market caused a decrease in business.
That's why there needs to be an emergency fund in place.
I definitely use my credit cards for both building my score and getting points. And yes I do pay them off in full every month. I’m going to use them too for my future business.
Keep your Credit Utilization under 30% and your Credit Score will Jump. Believe me, I learned the hard way now I'm hip to when to pay and how to pay. Great Video!
All those reasons you mentioned is why I use credit cards for 99% of my purchases. The biggest one for me is those sweet reward points I get back and I even count them as one of my income sources as I’m always able to pay off my credit card statements.
This! I see it as additional income each month!!
A credit card is good when you pay it back on time. Some people can't get approved for one credit card even though they want to build it up through expenses. All the reasons you mentioned are great!
Do we have to pay interest even it on time?
I don't disagree. I have credit card and I always pay in full before due date. Credit card companies don't earn from me! They keep on increasing my credit limit. But Im not taking the bait to spend more. :)
In England if your debit card is been stolen all you have to do block it from your phone easy as that
Paying off the balance at the end of the month is the same thing is paying with a debit card. The money is going to be gone either way. And you expose yourself to 28% interest. He's wrong.
Number 3 - Is the reason I am considering a credit card as my life has been a financial disaster. Now I am starting to build credit again. With good money practices now being used I am wondering if having a credit card, used wisely will help me with this goal.
DAN LOK VS DAVE RAMSAY.
I WANT THEM TO HAVE A RECORDED 1 on 1 discussion in the flesh on this subject.
When to people have opposite opinions, I always want to see what happens when they talk face to face..
This!
Dave Ramsey's perspective is from his traumatic irresponsible old self with debt.
LETS MAKE THIS FUCKIN HAPPEN PEOPLE!
Let’s get ready to RUMBLEEE!!!
I always use cash and debit card for everything. Credit cards may be better for some small percent of people, but way more people get burned from using credit cards than the people that benefit from them. The whole business model of credit cards is for the credit card companies to make money off of the credit card holders. Their methods of milking people for money is way more malicious than any debit card.
They said credit card is a scam😀
I agree with you. It's the financial education that's lacking. I've been using credit cards for 10+ years and have always paid the bill on time. It's the discipline that matters. I've never a paid interest on any of my credit card purchases and I use my credit cards for literally 80% of my expenses, including rents.
If you pay 100% of your bill on time, every time, the credit card companies don't make money out of it, you do.
@@mohamedubaid172 what if you pay the minimum payments ?
@@Keepit-dy3yq thats when the credit card companies make money. They want you to spend the money you dont have, and then ask you pay interest on the item you didnt need. Break away from this cycle. Buy everything from Credit Card only if you can pay 100% of the bill value without paying interest to the bank. You will be amazed at how powerful this simple payment technique is. You save money by earning reward points and cashbacks and you never pay interest on any of your purchases.
The line here is - PAYING off the balance every month. If you cant do it, dont have a credit card. Simples.
Debt free from credit card is the best feeling ever. Not going to apply for a credit card ever again.
With Credit Card Yes you can leverage other people's money, but it is short term. You also need to leverage to ensure you are working that money as well rather than spending it on holidays for example.
Debit card helps you control money if you feel like you are spending out of control on credit card.
There is no right or wrong, different tools for different people.
Facts!!
@@purequotesshow5579 Can you elaborate Pure Quotes Show?
@@michaelchen1893 He was just agreeing with you lol.
You are totally right! People spend money differently and as long as they are using what works for them and their budget, it’s all good.
Using both because I use my debit to pay off my credit I am not afraid of credit cards anymore because I learned and remain discipline.
Got my first credit card back in 2016 (age 18) haven't missed a payment. I was able to get a car loan easily back in 2019 because of my credit card.
I switched to credit card about a year ago. My credit has gone up nearly 100 points because of it.
I also make money with them from the cash back. I pay nothing in interest because I pay it off every month.
Wish I had started this years ago.
My daughter is turning 17 in a couple months. Going to add her to my account and get her her own card I'll control. So when is ready to move out she will have decent credit.
I've traveled a lot for business and it's great to use the company credit card because I get reimbursed for my expenses every month and I can pay off the balance entirely. It's like getting free credit score upgrades and reward points every month.
You can use the pencil to stab someone like john wick😂😂😂
Octane Bells - Excellent reference!
Yes I used a similar reference as a kid in my exam too. A knife can be used to cut, or to kill, it depends on how you use it.
Beware VISA has a service called account updater. If you cancel a card and get a new one the service will give your NEW card info to any merchant enrolled in the service. This will be done WITHOUT YOUR CONSENT or knowledge. You will not be notified that it happened but you might have agreed to it in the tiny writing you never read when you set up the account. It is billed as a service to you but since you have to put in your new info anyway when you log on to the merchant site again it is really a way for the merchant to keep its hands in your pocket more easily. Watch closely when you set up accounts for reoccurring billing to make sure you really want it.
😂 Thanks. My teacher asked me to do a presentation today for Cred and Debt card, pros and cons. This really helped
I never got screwed dealing with *cardman99* on telegram, he is most legit vendor I found here 💳 ✔️
Very basic but important info. You need to pay your credit card bill every month though, don't forget that people!
Pay before the month. With the internet it can be paid immediatly
Debit cards also come with insurance protections against fraud. I’ve been refunded hundreds of pounds after fraudulent activity on my debit
Creidit cards companies are just waiting for one mistake of customer and
Late to pay by one day? Hit'em with the 19-23% APR ;-;
Agree with all your points. I’m actually using credit card to strengthen my credit score.
Recently I have been making smaller payments on credit cards a few times per month, before I get notice of my final monthly bill. Then, the amount at the end of the month won't be as large, and I know exactly where I really stand in my checking account as the month goes along. The bonus rewards won't be going away, and they will go right back as a credit to my credit card. I love that. It is like an extra income that's helping me pay the bill.
I love this video, Dan, thank you! I have never used a debit card for purchases intentionally. Twice, my debit card matched the color of my credit card and I used that accidentally! I try to have two different color cards; one for the credit card, and one for the debit card. Much of the time, I leave my debit card home.
Hes actually right...
I've had 5 cards, I keep them at 30%, and pay my payments on time.
My credit score is pretty high due to using a credit card making regular purchases..
Most of you criticizing most likely have credit card debt, you're DTI is terrible or you dont qualify for a card at all..
I use credit card since year but have NOT utilized the full power. Thank you Sifu for sharing your insights with us. Very much appreciated. 🙏
I think it all boils down to discipline whether you use a credit or debit card...amd most importantly making wise decisions with either of them...😞
@Emad Ahmed You could use it on what you'd pay for in debit at that time and just pay it off immediately once it is processed to ensure you don't spend over. Also having an emergency fund helps if worse comes to worse and that's the case even without having cc.
Simple reason to NOT use credit card: its extremely high interest rates!!!
Even if you repay in full every month, it is still a trap, because one day you might not be able to. Also, if you pay off completely at the end of the month, whats the difference with debit cards then? To say “you are leveraging on someone elses money” is a load of BS.
This statement alone shows Dan Lok is not to be trusted. I used to be his fan, but i was ignorant back then. Not anymore.
This made absolutely no sense.
you're earning reward points & cashback which debit card doesn't provide, on top of that there are many other benefits, but I agree with the risk of not paying off in time, since many people been laid off during covid. would be hard to get out of debt in that case.
The Big depression occured when people got too big credit for their income.
NistuGames seeing how many people don’t know what dan lok and others teach leads me to believe we’re about to see that again
@@xrystalskyes2838 you are an idiot, just use credit card as a debit card. Charge then go online and immediatly pay it off
@@Rick-kv3gl but why use credit card in the first place when you (have the money) can already pay it off with your debit card. And isn't there an interest rate in using credit cards?
People with Non Discipline with Money tells that Credit Cards are Bad !!
I think a debit card is useful if you can't control spending. Otherwise, the protections on credit cards far outweigh that limitation, and the perks of credit cards also tip the balance in their favor. But, as Dan Lok says, that's only if you pay it off every month.
Using your banks debit card is worse than a credit card in my opinion because of overdraft fees.
use credit wisely... 30 - 45 day interest free... pay it off every month.. or if 'larger purchase' over 6 weeks pay it off. Even if you take 2-3 month to pay off provided the majority paid off within the interest free period, tiny interest is paid. ALWAYS pay on time! ! ! If paying over 2-3 months, do not use again in this period, as 'interest free period' does not include new purchases if there is already a balance. I use low interest/ no rewards/ no points so getting rewards does not apply but the interest is 5-10% less! The 5th reason of 'insurance' is the most important.
All 5 reasons. I even start a small business using my credit card and pay on installment. My small business earn enough to pay my bills while also earning. So basically, I acquired it for free.
Congratulations hope this is me one day while not even having to work
I don’t blame my mother for now showing me right financially but I believe the only she had to do was bring me to this world of opportunity. And she did a great job
Credit cards are like fire. They can help you or hurt you. Or like a tool, a tool can help you if you use it right.
Never got a credit card only debit card... bank offers it to me but never really thought I was old enough to wisely use one. Thinking a card is a card.
Dude I can’t believe I’ve only had this epiphany about getting a credit card today... like what have i been DOING all my life with just a debit card smh
Credit Card vs. Debit Card: The Basics
So what’s the difference between the two?
How Debit Cards Work
Your debit card is basically like a plastic check: When you make a purchase, it takes the money directly out of your bank account. So, if you try to spend $500 but only have $250 in your account, your transaction will be declined.
Because the money is taken from your account as soon as you swipe, you won’t get a bill and you won’t pay interest. You might, however, face overdraft fees if you spend more money than is in your account.
Debit cards also work as ATM cards, allowing you to take cash directly out of your bank account.
How Credit Cards Work
Your credit card, on the other hand, is like a loan: When you open a credit card, you’re approved for a certain line of credit.
Also known as a credit limit, a line of credit is how much you can spend before your card is “maxed out” and can no longer be used for purchases. Your credit limit is based on your credit history and income; the stronger those are, the more the bank trusts you and the higher your credit limit will be.
Each month, you’ll get a bill for the amount you spent. Though you’re only required to cover the minimum payment (and not the whole balance), you’ll pay interest on whatever amount remains. Because credit card interest rates are usually very high, we recommend paying your bill in full each month to avoid interest fees completely.
6 Important Advantages of Credit Cards
If you only use your debit card, you’re missing out.
Here’s a brief overview of what credit cards can do (we’ll take a deeper dive below):
Help you build positive credit history
Provide protection if your card is lost or stolen
Offer rewards on purchases you’re already making
Provide additional benefits, like extended warranties on electronics
Give a “free” month-long loan (when you pay your bill in full)
Provide more flexibility when booking a hotel or renting a car
Love ur work dan i actually recently start my own company so thnxs for ur great guidance❤️
God bless the company
@@juliusrendon5936 Thnxs really appreciate it
good luck on your new company
@@crickyhere Thnxs man ❤️
If you're so worried.....
You can always use your credit card as a debit card...
as in don't buy what you can't currently pay off right now, but still reap the advantages of a credit card.
All it take's is a transfer and weekly/monthly budget.
If you have no self discipline or a toxic relationship with money don't bother!!
I think Dan is correct but I have a feeling that he is being paid to say this !
I think AMEX paid him
Probably is some kind of collaboration or something... Yes... What Dan said is true.
But on the other hand everything he said can be achieved in other ways as well... Plus there is a propaganda of using cards and personally I don't like it. If I want to borrow the damn money I would go in person...
Nowadays all the company that sells something useless are trying to get their clients by creating fantasy in their heads and the credit card is a convenable way of instantly getting the thing without hesitation.
And even if you actually have discipline still at some point you will lose control. Because that's what they are selling you: emotion
No, I am not getting paid to say this. I am saying it because it’s the truth.
@Vishal Kumar I think Dan wants you to buy HTC with your credit card
@@DanLok A truth born from your very own subjective experience. Even if we assume that is the objective truth then there's still plenty of us plebs lacking the discipline as you put it so at the end of the day better a idiot then a idiot in debt.
For most people using credit cards is very bad idea
Credit cards aren't better than debit cards. Because most people are living paycheck to paycheck and can't really afford to pay that debt off. But with debit cards they pay it off once and thats it. But thats only if they have alot of money in their account. Credit cards are interest eating beasts who don't care about the average consumer and would take advantage of the person who doesn't know how the value of money works and how to earn that money themselves so they wouldn't have to payoff or be in the debt trappings of credit hungry companies.
I had this debate with a buddy of mine because he loves debit and i told him about the dangers of using debit over credit. credit is far better if you pay the entire balance off each month.
I noticed in the past that the more credit cards I had, the more I would spend -- I'm trying to keep my accounts to 2-3.
yes credit cards might be good for businesses. but for personal is not good as may not know how much you spend and could get into debt to be paid over time. and debit cards money comes out right there very good. as you are living within your personal budget.
I get it but I don't get it. Because in the end aren't I just initially using my money to pay it off? I don't see the difference between that and using my cash to purchase from the start.
in simple words -credit card deducts money after some time ,so if you havent gotten your salary or you have exhausted it for this month, you can just swipe a credit card for a product and can pay it next month, its like a loan without any interest if you pay it properly next month
Also, if you ever want to buy a house or a car, a good credit score is something that’s very useful. Paying off your card on time will raise your credit score. Cards also collect free points which accumulate surprisingly fast and they can be used for plane tickets or other purchases. Debit cards charge fees and don’t offer anything else.
@@djmagn3m691 still can't get my head around it, let's say I've opened my credit card and been approved for 10k credit limit, I spent 200$ first month and pay it off when it's due, so each month I'll get a bill for the amount I've spent only? No hidden costs, or interests? What if I used my credit card for installment purchase, if pay off in time, can I avoid interests completely?
Easiest way to buy a house is to build credit from credit cards. Car loans don't really build credit
There's NO WAY you are going to convince me that for example, somebody has $100K on a VISA DEBIT which is routed to their savings and checking account via a credit union that is giving you 2.2% interest on your deposits is not better than having a $100K on a VISA credit card with a 20% APR rate! LOL If I'm wrong, then I stand correct and I humbly submit to your financial advice. Cash is king, credit is only king if you are using it for business purposes. As far as your personal expenses besides travelling it can get you into a LOT of trouble.
Mark Cuban said to use Debit Card...
haris rehman his also a billionaire he can use whatever and say whatever. I do use my debit card and credit combine
Nawl I’d stick to my debit, don’t have to worry bout going into debt. And when I get paid I can save my own money.
@@logandavis954 Exactly, with a credit card you have to pay them back anyways and people who are irresponsible with their money will probably end up in more financial struggle than before as they now have to owe the credit card company more money. With debit card you are in control of your finances.
I think the point at the end of the day is financial discipline, whichever card you choose to use
@@djshockafrica4330 right, but with credit card you lose your discipline as you can just keep borrowing money. Debit card you really are having to develop financial discipline as you are in charge of your money and no one else, so no silly spending will take place as you know that money will be gone as opposed to credit card where you borrow money to allow for silly spending.
"I believe only idiots use debit cards"
Dave Ramsay has entered the chat
Credit Cards have left the chat
As a Dutch person, this is very interesting to see. In the Netherlands using a credit card is way less normal than in the USA, and credit score is also not really a thing here.
Not true.... if you have a debit card they will give your money back, they will investigate the matter,the bank resolve the matter I know because it happen to me. The bank always monitoring your activity and if something look suspicious they will call you and block the card until they talk to you and do an investigation right away. I AM VERY PLEASED WITH MY BANK!!!!!!!!!
Use your credit card if and only if its important or necessary
I usually like most of what you say but this time I must disagree.
Telling people who are living paycheck to paycheck (most of your audience) that you just need to have the discipline to pay off the credit each month is kind of like telling alcoholics that they just need more discipline to not drink while being around alcohol.
In that situation, it's better to be proactive and not put yourself in situations where you will be tempted. Cut the credit cards and pour out the alcohol at home.
Even paying with cards in general is problematic.
There have been studies showing that we don't even see "the future us" as the same person. So when we pay with credit, we are essentially pushing the bill (aka the consequence) to "someone else". Which of course makes it very easy to overspend and leave the debt to "future you" (that guy can handle it).
Thank you Sir Dan Lok, I got my first credit card, I will apply this advice. My parents are scared of credit and don't recommend me one I got a card in secret I need my future!
All millionaires know advise against debit card. Debit cards can do the exact same thing. People who use credit cards don't want to get rich.
Dan Lok just promoting credit card for the Buck's he got.
Yeah, right, Dan, who paid your?
ExCtly for shows earn
I wouldn't go so far calling people idiots but.... you really stated 5 good reasons
But Dan I believe that you should have money saved for an emergency if something like your car were to break down, because cars do from time to time. That way you won’t have to fork out any money from checking’s.
Credit cards are good for those who especially know how to use them. I just don’t go beyond my limits, and I pay off the amount due on time that way building my credit score. Another great thing is that you have more time to accumulate money to pay things off through initial borrowing. Vast majority of Americans are just really bad with money.
America is the best country in the world followed by India and Britain.
But Dan
The majority of people are broke because they use OPM but they never use them to actually make money. And the idea of credit it became a cue for laziness...
When you are dressed like a kid in your bedroom browsing on the internet and you want to buy something online with your credit card is almost certain that you are going to buy something useless. In contrast if you would go in person to borrow OPM, dressed in a suit and you have a plan on what are you going to do with thy money, you are more likely to use the money on something useful.
At least don't use credit card for a consumtive things such as cars or other stuff that ends up nothing
I'm debt-free and I use credit cards, I have the self-discipline and enjoy the rewards.
But I'm under 18... guess that makes me an idiot 😂
Credit cards. But i pay before the billing statement comes. Hahaha.
@Darkteckh on telegram is a real vendor I can’t believe my eyes that man too real Go on his telegram He sell credit card with high balance🐡🐡🐡
One of the main reasons people prefer using debit cards is the sense of control it gives them over their own money 💯
People seem to forget that Debit cards are really dependent on your bank, my card is linked to my local Credit Union, I dont get much interest at all but I dont ever pay a monthly. I doubt I'll ever look at using credit due to not exactly seeing it in the right.
Credit card is a no brainer, but only for people that are “deciplined”, paying the bills like he mentioned in the vids. You are spending those money anyway, why not spend them with credit card that also comes with those benefits? But again, don’t use it if you can’t control yourself
I'm switching to the method of using credit cards like debit cards. If you can't handle your money and know you're not going to pay it off in full or on time then clearly that method may not be for you. But credit card companies have taken care of me much better than a regular bank that I have debit cards with. Credit cards aren't the devil people..y'alls impulse buying and not paying it back is.
Preach Ciarra!!! Preach girl
@@debonairshow2975 thank you!! Lol
Credit cards are for people who has discipline only. Don't use it if you cannot make full payment. Otherwise interest is much more than the perks they give out.
It's all to do with self-control and discipline. It's like alcohol, if you use it right then it's fine, but when you lose control it's a downward spiral. Using a debit card is risk mitigation if you don't have solid self-control. I take it Dan Lok doesn't have a joint account and is good at managing money. Think of debit cards as training wheels - are people with bikes with training wheels stupid? Only if they could ride the bike without them. However if you know you can't ride a bike without them then you're stupid not to use them...
Absolutley correct on all counts. I've been doing this for years. Say bill new balance is 1500, 21 days later it's up to 2500, pay only the 1500 no interest. Do that every month it's a 2000 interest free loan indefinitely. The more you use it the higher the interest free loan.
Debit cards are ten times better than credit cards.
It is very import and critical to have hope that our future will be more beautiful than our present
I would believe that if the new generation was smarter than the last but we all know the kids don't measure up to the past.
Dan you are truly lightworker!!
Thank & bless you so much!!
Great information, thumbs up for this video 👍👍
Here’s a scenario: you need to get down to a village. There are 2 paths. The first (debit card) is through a field. The second (credit card) is around the edge of a cliff. Both paths lead you to the same place, but One path offers you a reputation that opens some doors (house,shiny cars etc) to your life.
How badly do you want things in life?
Things that you leave behind one day.
If you don’t make a lot of money consistently be careful about credit cards. Life happens.
When I use my credit card I ensure I have the money in my bank before I make the purchase then I put it into a pot marked spent so I will always have the cash to pay off the balance even if the worst happened
You’re not really ‘leveraging’ other people’s money if you have to pay it all back every month. Borrowing others’ money just to then pay back using your own money seems unnecessary, just use your own money to begin with and avoid the bills
Well, you need to build a credit score if you want a low interest mortgage or loan so it's worth it!
You can pay 26 percent interest on a new home of you don't have a credit ratings YIKES!
It's long term thinking rather than short term.
You don't need to use credit for everything! Just enough to build a good score.
If you need a credit card your not responsible and not smart with your
money. I just have 1 debit card it has served me for 10 years and iv been alright no debt. If credit card companies and banks dont want you to be in debt then their buisness would collapse. The narrative of the credit score further pushes that belief that your responsible for things you cant afford. It reinforces that psychology that you "need a credit card to get thru life" Please be aware
*Dave ramsey: has left the chat* 💪🎭
Thankyou ❤️ I’m going into Credit card now I’m a Newbe haha. I’ve been using my debit
Just pay it off monthly, and have discipline and dont spend money you dont have its very simple.
Dan Lok I agree with you that when you use your credit card, you're building up your credit score credibility
,you get rewarded, and you're better protected with a credit card then you're with a debit card.