Should You Only Use Debit Cards? Why Credit Cards Are Better
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- Опубліковано 5 лип 2024
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You’re probably wondering, “Should I use debit cards or credit cards to maximize my financial potential?” Well, in this video, Dan Lok is going to be straightforward with you as to why he believes only idiots use debit cards, and why credit cards are better. If you liked this video and want to see more like this one, hit the “like” button and comment below.
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#MoneyManagement #CreditCards #DebitCards #Difference #YouDecide #ManageMoney
This video is about Only Idiots Use Debit Cards - Why Credit Cards Are Better
• Should You Only Use De...
The big mistake is to believe that the money is yours (credit card)
😂😂😂😂
But I buy my rolex for 100k with credit card and I dont mind amk
@@cebceb3674 😂😂😂😂😂do what you want
@@ricohinaro5559 thx
exactly the feeling U get when U have access to credit...😄😅
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.
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.
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
😃😃😃😃
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.
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.
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.
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😂🤣😂🤣🤣
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!
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.
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
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.
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.
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.
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.
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.
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. 🙏
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.
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.
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!!
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.
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?
😂 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 💳 ✔️
In England if your debit card is been stolen all you have to do block it from your phone easy as that
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.
But I'm under 18... guess that makes me an idiot 😂
Dan you are truly lightworker!!
Thank & bless you so much!!
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.
Your videos has been super helpful to me thank you Dan Lok!
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!
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.
Agree with all your points. I’m actually using credit card to strengthen my credit score.
"I believe only idiots use debit cards"
Dave Ramsay has entered the chat
Credit Cards have left the chat
Great information, thumbs up for this video 👍👍
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!!!
Good points! For most people it is a trap though. But your content is for the best 🏆
I found this video very valuable thanks Sifu
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.
Debit cards also come with insurance protections against fraud. I’ve been refunded hundreds of pounds after fraudulent activity on my debit
Dan may I ask.. Would you rather receive an expensive product and free shipping, or receive the market rate and a charge on shipping..?
Overall great content, great information but that title got me for sure
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.
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 ❤️
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.
Ooh thankyou soo much sir
What an amazing point you just highlighted.
I am learning about these things and will sure keep your points in my mind😄
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.
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
thank you sir for such an advice.
now my concepts are clear.
Salam bro, what do you think about credit card is best or not?
If yes then which credit no monthly or yearly fee?
Thanks.
@@tahiralikhanbaryar5669 all credit cards are good. it depends on the issuers and their interest policies.
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!
Hey Dan! Can you provide some insight on what to do if we're thinking about buying a home? Should we do a mortgage or not?
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.
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.
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 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?
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
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.
Very good , b useful talk on credit card. Thank u very much.
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 ;-;
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.
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?
Completely Agreed, (Well Explained)
Also, for paying bills, (unless the company only works with banking accounts) you don't have to worry about making sure that the funds are available at the time they are due. As long as the balance is paid off, then it's no real issue.
Waiting for this
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🐡🐡🐡
A dan lok ad on a dan lok vid😎
Thanks Dan for sharing this
Credit card is good when bank offer 55 days to credit
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.
Great vid Dan!!
Thanks again
I don't have a card, but now I know whereon to choose!
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.
I wouldn't go so far calling people idiots but.... you really stated 5 good reasons
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.
i salute you dan.i like your videos, you are a great seller! a good comunicator, you are truly a rich person.nice of you!i truly admire you, you are a altruist person-who wants to remain in the peoples mind-nice!
Dan! thank you for that valuable advice
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
Thanks for sharing 🙏
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.
He has a point. Looks like I'll get one this year haha
I gained new knowledge thanks sifu Dan Lok
Thank you for ALL your video/advice... You are GOD of Business for me :)
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.
Wow!! Dan Thank you so much. You have changed my Mindset against Credit card!
@@j.dino.supreme953 I don't know you but in india if you swipe you credit card you will have to pay that money within 45 days if you not after that you will have to pay interest but if you pay that within deadline, you should not worry about interest. I am not saying that always use credit card but use it wisely.
Thanks for your valuable business tip!😊
@@j.dino.supreme953 If you pay in full every month you don't pay interest. Most services and stores allow cc without additional fees also. I use it for everything I can that doesn't charge extra for using it and never paid interest. Plus based on the card, get some money back each month or as he mentioned other rewards.
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.
Good pointe.. 👍🏻
I live in Guyana 🇬🇾 I’m interested in this ever since I saw 👀 this video and I think it’s a worthy consideration my brother and other friends use it so it’s about time I get with it!
Easiest way to buy a house is to build credit from credit cards. Car loans don't really build credit
Thank you!
People with Non Discipline with Money tells that Credit Cards are Bad !!
Kudos DANLOK👍
Loved the video. What do you think of having your money in new fintechs like n26 or Revolut?
All reason resonates with me.....when Dan Lok says that ❤️
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.
About the credit card rewards. There is a reason for that. You're not winning when you're spending a lot extra (which you're likely to do with credit) and then get 1-2% back in the form of bonuses 😂
All good points and agree, however when it comes to fraud prevention they all follow the MasterCard/Visa/Amex chargeback guidelines meaning that it is irrelevant if it is a debit or credit card since they can use the same guidelines to recoup the fraudulent funds. In the example used, one case is not the same as the other, if the transaction is done online from overseas then that is an easy case of a fraudulent transaction and there would be no issues with the issuing bank to lodge a chargeback on your behalf and provide a goodwill refund at the same time.
In the other example of a PIN being used, then there is a liability shift that falls back to the consumer for making it easy for the person that stole the card to use it for fraudulent transactions as they had the PIN readily available to them. Depending on your standing with the bank they may write off the transactions from their own accounts and refund it back to you.
Not trying to nit pick at the reason but I thought it might be useful if someone has fraudulent transactions occur on their debit card and are thinking that they cannot lodge the chargeback in the same manner as a credit card.
Credit Card comes under Personal Loan so if I'm dead my family doesn't need to pay it goes with me so kinda recovery of annual fee I pay.
I put my money in liquid funds and withdraw 3 days before credit card bill date.
Just pay it off monthly, and have discipline and dont spend money you dont have its very simple.