Americans now owe $1.13 trillion in credit card debt

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[–] 2 points 2 years ago (2 children)

The concept of credit card sound stupid . Here barely any use them . We use debit card .

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  • [–] 5 points 2 years ago (1 child)

    Insurance and fraud protection.

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  • [–] 6 points 2 years ago (1 child)

    That's what we have with debit cards.

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  • [–] 8 points 2 years ago (1 child)

    Maybe in your bank. Most banks don't offer any protection for debit cards. Credit card companies offer more protections and that's why people use them.

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  • [–] 2 points 2 years ago (1 child)

    There are a couple benefits to a credit card as long as you are paying them off and not using them when you don't actually have the money to pay them off.

    • It can improve your credit score which is important if you ever plan on buying a house, so you can get a loan.

    -There usually aren't any fees for using the card like most debit cards have (at least where I live).

    • many credit cards offer a reward system which you can use to get free stuff, or sometimes just cash back. I have a dividends and get a percentage back on every purchase up to a maximum.

    So as long as you pay them off monthly, using a CC instead of debit can actually save you money and be a good thing. It's when you can't pay them off, and instead just meet the minimum payments that they become a problem since they have crazy interest rates.

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  • [–] 1 point 2 years ago

    It's often the other way around in yurop. Debit cards are free or cheap, credit cards aren't. Credit card scores aren't a thing. They mainly look at job status, income, savings, family money when considering giving a loan for house purchase. There are credit scores and blacklists, but it's more a background bank and government thing, not a game in your banking app.

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