Hey everybody welcome back to my channel today's video. We are going to talk about credit cards and debit cards, so what's the difference between credit cards and debit cards which the pros, what's the cons and in my opinion, which one I think it's better. So let's get right into the video, I'm pretty sure from the name of my YouTube channel, you can figure out which one am I you know rooting for, but let's get right into the video. I want to give you again the pros and cons of each.

What are the differences and while I think I choose one over the other - and I also want to get your feedback too - this is a two-way street. So let's hear what you have to say: let's get right into the video all right, so welcome back to the channel again, if you are new to the channel, please like and subscribe, and also share this video. If you find it helpful, I know a lot of people and it's a it's kind of common. When I talk to people on a regular basis, they will mistakenly say credit card for debit card or debit card for credit card.

Some people may think that are the same thing. Some people may know the difference, but it doesn't matter we're going to get it. You know situated today, so a debit card. What is a debit card? A debit card is typically given from your bank or your credit union, and it's your money, okay, so it's linked up to your savings accounts, your checking accounts, your money, markets, etc.

So these are accounts that you have with your bank. It has your money into it. The to deposit weather is ATM deposits direct deposits deposits at a branch. That's what a debit card is.

It is linked to your money electronically, but it's linked to your money that you have so if you have $ 10,000 in your checking account I'm sorry who don't even have $ 10,000 in your checking account that's too much if you have $ 10,000 in your savings, Account you'll get a little interest; it may be like a thousand or two thousand. Your checking account that so when you're swiping your card, that's coming directly out of your account. Okay, what is a credit card? A credit card is money that is given to you is by lender by a bank, a financial institution American Express Chase Capital, One okay - and this is money that they're giving to you, and you have a limit most of the time on these cars. Okay, so you have let's say two thousand dollar limit on your chase card.

Let's say you have a ten thousand dollar limit one year visa car with a with another okay. So that's what a credit card is the biggest difference. One is not your money, which is the credit card. The debit card is your money.

Now here are the pros for both debit card Pro you're, probably a little bit tighter and more conscientious about your decisions. If you are somebody who is not as not as responsible with debit cards and spending money, you're not going to spend much okay, it's coming right out of your account you're, avoiding any interest charges. You are avoiding any late charges and you don't have to worry about your credit score being affected if you're, spinning too much okay. So that's that's your debit card and again, when you swipe it's coming out of your checking account credit card.

What is a credit card? What's the difference, what is the pros of a credit card you're helping your credit score if you are paying it in full, you're being responsible, you're, also getting rewards? Now some debit cards do give you rewards, but they're, not as much mostly the credit cards give. You rewards for swiping whether it has cashback, whether that is points for travel, etc, you're, getting something back for using the credit card right, and so that's that's what the pros! What are the cons of a debit card, the cons of a debit card? You are subject to overdraft fees, which are typically 35 to 36 US dollars per transaction. Each financial institution is different, but they're typically 35 to 36 dollars, so each transaction over draws your account. You are subject to paying a 35 to 36 dollar overdraft fee, even if that transaction is $ 5 at McDonald's and you do something wrong: you're going to be you're going to get charged 35 to 36 dollars for an overdraft fee.

That is ridiculous! Okay, so that's the con, it's also not as secure. So if you have fraud in your account, if somebody takes money out of your account, you are subject to losing your own money, and so the bank decides to do an investigation and get you your money back and that's a big hit, especially for people who made The check the check again, not no, no one is mean a lot of people aren't rich. So if you have a transaction for $ 400, it is Christmas time a lot of fraud happens and you get fraud on your debit card. You have to wait to get your money back, okay and absolute.

That can be a big hassle, especially around Christmas time. What are the cons of credit cards? Well, if you don't pay your balance, a fool, you can get interest late charges. You can also overspend, because you have this money, that you see. That is not really yours, but you see it and if you're not responsible, you could overspend and - and it can also affect your credit score.

So that is the con one more prone to kind of counteract. So if somebody steals your money on it, your credit card, if your credit card is compromised or something like that, you're not subject to pay that okay, you are protected. Okay, so you know, if you call up and say say - and I didn't do - that transaction - you are not liable to pay that okay they'll do an investigation, but it's not true money being affected and that's that's the biggest. I think that's the biggest problem.

You know it's a lot more secure to me. I know you have merchants out there that I kind of become the middleman. They kind of block like Apple pay or you know - PayPal, for example, Samsung pay Android all that stuff. But with your credit card man, I don't care where I use my credit card.

I because I know if a transaction is on there, that I am not familiar with doing I'm not gon na pay for it it just that's the best thing about the credit cards. Okay now, which one do I like? I, like the credit card better, you get the points, you're building your credit, you're safer. It's just a win-win-win in my situation. Debit cards are okay; nothing, I'm not against debit cards; again, I'm just more! So if I'm gon na use something I want to get cash back, I want to get points I want to get status.

Some credit cards give you status on a good stuff, plus a more secure on this side. With again your money being taken out depending on the bank you're with you might get a provisional credit. When you see my decision money as soon as possible, you might have to wait. Maybe a week or two credit card is not mine.

Okay, cool, don't worry about it. You'll have to pay that boom you're good. You can continue using your credit card or your other credit card or maybe give me your debit card in the meantime, but you're walking away a happier person, because you know it's not your money being effective, it's the bank's! Now I want you guys to tell me which one do you like better you, like credit cards, do you like debit cards, which one do you use mostly well know? We have some people who are strictly debit card because they like to make sure they are being very, very conscientious about their decisions. And then we have people who are learning more so the credit card side, because the security because of the cashback.

Because of the points all that good stuff, let me know what you think. Thank you so much for watching this video again. If you found this video helpful, please like share and subscribe thanks for tuning.