For groceries, should I use a debit card or a credit card for now on for my groceries? What’s better to use?

[Anonymous]

Some people say a credit card and other people say it’s a debit, but I don’t know which one your guys’s opinion

[AviatorTom]

It's always better to use a credit card for any purchase.

Why? A debit card takes the money immediately out of your account, while you can take until the end of the next billing period (typically 30 days) to pay. That gives your money time to earn interest. Of course, you need to keep track of your credit card expenditures, and think of them as cash outlays, making sure that you can always pay off the full credit card bill each month.

There is a major security advantage of a credit card. If someone steals your debit card info, they can clean out your bank account, and the bank is under no requirement to give it back to you. If someone steals your credit card info, you have federal law on your side. So long as you notify the credit card company in a timely manner (that usually means with 45 to 60 days), the credit card company has to credit the stolen amount to your account.

I have ever had a debit card and never will. I do have an ATM card from my bank, but that's limited to $200 withdrawal per day, so even if someone steals it, I'm only out $200 at the wordst.

[Curmudgeon]

This is a very good point, but with the caveat that the credit card must always be paid in full every month.

[madhatters4]

if you are good at managing money you should use a credit card for as many purchases as possible and try to keep a zero balance or at least pay off your statement balance monthly.

using credit builds your credit score which is incredibly important in life. additionally most credit cards have significant rewards that can end of saving you money. debit cards provide neither benefit

that said if you are not good at paying your credit card bills and end up owing interest then debit may be the way to go. but debit is generally now a good way to go about paying for items if you have credit cards and are good at managing money

[Maybe_Maybe_not]

wait, what is this score system and what are the rewards?

[madhatters4]

@Maybe_Maybe_not credit score? it's a rating crediting agencies give you based on the amount of credit you have taken out and paid off in a timely fashion. it's a prereq to things like home ownership or getting a decent rating on auto loans and other loans

credit card rewards? lots of cards offer some sort of financial incentive to using their card. it's not huge but it is savings (3-5%). example... for about every $100 i get using an amazon credit card i get $5 credit (free money) towards purchases... i have bank of america and my credit card offers rewards toward travel or any perceived travel related expenses (flights, hotels, gas, groceries) based on using the credit card for every day purchases

presuming you knew this but perhaps my initial response wasn't' clear. provided an answer anyway just in case for any others

[Maybe_Maybe_not]

I knew nothing of this actually, thanks. It's probably country specific. Where I am, banking system seems to be quite different, home ownership or car loans aren't subordinated to credit cards. Credit cards are rather perceived as fishy, given how high interest rates are, compared to a debit card

[madhatters4]

@Maybe_Maybe_not ahh. yes. I'm coming from the USA structure. credit is almost an essential.

like unless you can pay in cash without credit you can't buy a home and if you have a poor credit score your home loan is going to have very high interest rates

[Maybe_Maybe_not]

wow, an almost mandatory credit card system lol, but I don't understand yet financial benefits for consumers... Because each time you're using this credit card, you'll have to pay interests, or can you nullify interests?

[madhatters4]

@Maybe_Maybe_not you don't pay interest if you pay your bill on time. interest comes on credit cards if you pay after the monthly bill is due.

i try my best (and am proud to have done so probably 99% of the time) to pay my monthly bill on time. and to lesser extent tried to make sure every month i paid my balance (money owed) back to $0. people who are good at managing money and can use a debit without going over their limits or down to zero could effectively see using a credit card as similar to using the credit card, you'd just have to remember monthly to pay the bill

[Maybe_Maybe_not]

All right, it's not as scary as I initially thought then. So the way I understand it now is that getting access to loans is subordinated to a perpetual debt test you pass each month. I'm not that sure but I think the system I know of seems more based on how stable your job contract is

[Abbycado]

I get points for groceries on my CC so I use that. I pay it off anyhow and don't buy a ton when at school. It builds over time tho.

[Abbycado]

Don't listen to the guy that says it will lower your score. Shockingly, someone that old doesn't realize what you buy has no bearing on your score. This is easily searchable online. Just wow lol.

[madhatters4]

it's scary that you are 1of3 people in this thread that actually understand how credit works. scary because of the very real world implications

[Abbycado]

Yeah, my parents just always said watch how much you utilize it and pay it off monthly. Never had an issue and have a really good score for having rather limited credit as a student.

[CupcakeTheDestroyer]

Depends on your credit card, its spending limits, and how much you have in your monthly budget for groceries.

[Asker]

I only have a part-time job

[CupcakeTheDestroyer]

Numbers help more than titled

[WindAtMyBack]

I've been shifting back to cash. I don't think it matters whether you use a credit or debit card. They both go through the same credit card network, so I assume they both charge the same fee. You don't pay that fee directly, but it's built into the cost of everything you buy. It's why so many businesses are starting to charge more for using a card. That was common back in the 70s, but companies got away from it until recently.

With a credit card, you can get extended warranties on things, but that won't matter with groceries. You also get to play the float with credit cards. In other words, you continue getting interest on the money for a short time until you pay off the card at the end of the month. That interest is pretty minimal, like less than a dollar a month.

Realistically it doesn't matter.

[RingOfFire]

Never use a credit card unless you can pay it off in full every month. Credit cards have very high interest rates UNLESS you pay them in full monthly. So if you are already paying interest on outstanding balances on your credit card do not add anything else to that balance and use the debit card instead (assuming you have enough money in your account to cover the cost).

The only right time to use a credit card is:

1. You are buying something that you don't have enough to pay for in your account so you need to pay it off in installments (using the credit card is the same as taking a loan).

2. You are very responsible and will pay off the full balance on your credit card every month.

Otherwise use the debit card.

[FunkyMonkee]

Debit, oof course!! If you use credit, they're gonna keep adding interest until you get it paid off! Debit takes the money straight out of your checking so, there's nothing to pay back but, if you wanna eventually pay $150 more later for $300 worth of groceries, now, go right ahead and charge it!!

[Curmudgeon]

That's the catch. As long as you pay in full every month, meaning stay withing your budget and pay the card in full each and every month, the credit card method is great.

[FunkyMonkee]

@Curmudgeon Exactly but, if you bought something that was $700 with your CC, by the time you get that paid off, you probably paid at least $800.

[Massageman]

Really no contest.

We use a CC and pay it in full each month. "Payment" is delayed up to month. I earn (yes, a minimal) amount of interest during the interim.

Many DC's add a service fee, possible interest imposed from the moment the money is debited away (spent) to the recipient.

[genericname85]

if i lived in the US i'd use credit card for that because of the credit score system. in germany where i live, that doesn't exist so there's no point in using credit. anyway: make sure not to have debt longer term debt. it's expensive to have debt. always pay up. that's how credit score rises.

[nolabels]

If you use a credit card that has a Rewards program, and if you pay your bill in full every month, buying groceries will build rewards points really fast.

If you don't pay off your credit regularly, though, that's a bad strategy.

[abc3643]

Use a debit card.
If credit card companies see you are using credit cards for groceries which are basic this implies to them that you may be in financial trouble, so your credit rating goes down.

[madhatters4]

this is not true. using a credit card is not seen as being in financial trouble. not paying your credit card bills makes you appear to be in financial trouble and makes your credit rating going down. buying with credit (regardless of what you purchase) and paying your credit card statements timely ONLY builds credit and improves your score/rating

[abc3643]

@madhatters4 While it is true that using credit cards and paying them off builds credit, what you purchase and how and when can have an impact... and having credit itself can have an impact.

If your credit cards are almost maxed out and you are buying groceries on a regular basis with them, this will indicate something of a yellow flag. Furthermore, if you don't think it is now, it will be because this is just the sort of thing that pattern detection via AIs discover if a human already hasn't.

[madhatters4]

if your grocery card is maxed out you can't purchase groceries on it. similarly if your credit card is maxed out i can't imagine someone is making the monthly statement payments as they would be in the $1000s per month. so if your credit card is maxed you are liking making payments below the monthly statement which means you are incurring interest which yes lowers your credit score

" Furthermore, if you don't think it is now, it will be because this is just the sort of thing that pattern detection via AIs discover if a human already hasn't."
sorry i don't really understand this statement or what the emergence AI has or will have to do with people's credit ratings

[LadyBecks]

I just use cash or my debit card. I very rarely use my CC - only because it's very easy for me to lose track of what I'm spending.

[Curmudgeon]

A credit card IF, and ONLY if, you pay it in full with each monthly bill. Otherwise the interest charges will eat you up.

[Curmudgeon]

What I like about credit card purchases: (again, with the caveat that you will already have the money to pay in full when the monthly bill comes due):

1. A monthly statement, which allows you to track your expenses, that is, how much you typically spend on what kind of necessities and luxuries, month by month.

(By the way, if the credit card company tries to push "going paperless" on you, politely tell them NO. Yes, you can get the monthly statement online now and even reconcile online, but this middle aged accountant man likes having paper back up, that I can "tick and tie" reconcile).

2. No hidden "transactional fees", like you have with debit cards. (Exception, using the credit card in a foreign country will have transaction fees, but as long as you pay those in full every month, you are okay). Nothing is more annoying than trying to keep your checkbook balanced only to discover transaction fees that put you at risk of having your checking account overdrawn.

(At this point, I am sure the youngsters will tell me they never write checks and even that they don't even have a checking account, but this old man was brought up differently.)

[Anonymous]

Either one is fine, but use it through Apple Pay or one of the others for an extra layer of protection. With each purchase, they create an entirely new one-time card number that can't be used again if it's somehow stolen.

[ohsheeT]

You debit card because you have money on your debit card. Credit card , you have to pay back plus interest use that when you absolutely need to

[ohsheeT]

But if you're trying to build your credit and you can pay it back every month , then your credit card it depends on what your trying to do

[Nikki1989]

There are more benefits to using a credit card. Just pay off your balance every month.

[Maybe_Maybe_not]

I don't see any good reason to use a credit card except for things you need and couldn't buy with your debit card?

[jahaims]

Debit is like paying cash. A credit is like taking a loan. You pay interest on a loan. So paying with credit is worth it if you are trying to build credit or if you have specific benefits/rewards to your credit card

[Brady]

I red cr. cards r bettr. U can dispute a charge u didn't make. Debits take money out of the bank acct. However 1ce my mom had money takn out of the bank from her debit n she told the bank n the bank gave it bak. Money is also a safe thing I red.

[Ariesman81]

You'll get a better return on a high yield debit account like Fidelity. A straight 3.5% on available balance rather than rotating cash back on spending. Plus, there's no risk of a high interest penalty.

[Drumlin2001]

As long as your clear the balance each month, credit card. Build a strong credit score and some additional protections on purchases.

[fivebyfour]

Credit card always, in USA you have FCBA, UK we have CCA, much better consumer protection,,,

[msc545]

Please use the debit card that will keep you from overspending. I recommend not using a credit card for this sort of thing.

[exitseven]

I use cash or write personal check.