Comments on: Again, Credit Cards vs. Debit Cards: Identity Protection

By: KMull

KMull — Tue, 10 Jul 2007 22:46:55 +0000

The best thing is when people are convinced the debit card is a credit card because when they swipe it at the grocery store, they can hit “credit” and sign for it instead.

Credit is the way to go, in my opinion.

By: Flexo

Flexo — Thu, 05 Jul 2007 13:06:45 +0000

John: Keeping one card with the longest history is all that’s necessary to keep your score from dropping due to a reduced credit history. FICO is changing the formula soon, though, so at some point the length of credit history may play a smaller role in determining your score. As far as whtehter to keep your cards or change every few years to maximize rewards — it doesn’t have to be one or the other. Keep an old card to keep your FICO score up and stay on top of what’s currently out there to get the most out of rewards.

By: John

John — Thu, 05 Jul 2007 11:52:07 +0000

I’m still sticking with debit card over credit for most small purchases. But thanks for getting me to study the pros/cons of each. Ultimately, it has as much to do with the individual rather than a universal rule.

But, I have another thought that may be more likely to be a universal truth/falsehood for most people: does keeping a credit card that you’ve had for many many years help your credit score more than changing credit cards every 2-3 years (to match the latest APR or rewards fad or style)?

Even though I went mostly-debit card a year ago, I’ve kept my 2 credit cards with are 6 and 8 years old, because I read someone keeping a credit card with a long history is liked by FICO. Am I wrong?

By: Hustler

Hustler — Wed, 04 Jul 2007 19:05:08 +0000

there is no doubt that using credit cards is the better method. It’s just a shame that college kids think credit cards as debit cards.

By: Neely O'Hara

Neely O'Hara — Wed, 04 Jul 2007 15:42:32 +0000

…yeah, OK, all this is true. I’m sure some of you will think I’m hopelessly naive — (go ahead, I don’t know you, so think whatever you want) — but I’ve found that it IS true that I personally tend to spend more with a credit card than with a debit card.

Maybe the credit-only strategy works well for people who are a) VERY disciplined and have a very disciplined spouse and family when it comes to spending b) already out of credit card debt and c) will ALWAYS pay off the cards in full every month.

Yeah, yeah, justify credit cards every which way you want, but when push comes to shove, very few people meet all those requirements….

Sorry to sound cranky, but most people just can’t handle credit cards. That’s the unpleasant truth.