Hey everybody welcome back to the channel. Today's video is going to be five reasons why i do not use debit cards anymore. The first thing i want to talk about is the debit card fraud process. So if your card is compromised, unfortunately - and you know somehow someway it happens to all of us - there are so many uh online attacks happening daily with all of the big companies, so it happens to all of us.

Unfortunately, at some point in our lives, hopefully there's nothing too big, but if it does happen, the process is a lot longer and it actually holds your money up in the process. Now, keep in mind the more you use your card and the more places you use. Your card at this gas station at that store at this store. You know places that you're, not necessarily i'm used to using it at you're, going to increase your probability of being a part of a compromised batch of cards.

Unfortunately, it is what it is. You pay online. You use this website that website you're, going to increase your chances so going through that process. Your money is on hold when you're calling the bank or the credit union to get your money back.

Your money is on hold so that money, let's say, for example, if somebody was to take a thousand dollars out of your account, go shopping somewhere, while that's being investigated to make sure it is a reliable and real claim. They are going to put that money on hold now there are times where they will give you your money back, but that does still take some time with a credit card. If the transaction is not yours - and you say it is not yours, more than likely they're going to go ahead and go through the process, give you your money back, send you out a new card and you will continue to spend as normal. That's most circumstances again with debit cards.

There's a lot more that goes into it and again your funds are being held up, and i know a lot of people out here cannot afford to have their funds held up and even if you can't afford it, who wants to just doesn't make sense. So that's number one: the process when your car gets compromised, there's just so much with debit cards. Number two is most debit cards, lack, rewards and points. Now, let's say that again most of them do.

You do have debit cards. Now that give you cash back here. Cash back there, but they're, not as lucrative as what you would see on credit cards. For example, my american express card.

One of the promotions they had recently was, i believe, if i spent four or five hundred dollars on a delta flight, i got a hundred dollars back you're, not finding. I don't know what a debit card the best way to take. You know to take advantage of that is to spend what you were going to spend anywhere on that debit card. So if you were going to fly one delta and spend 500 anyway, and you have that money already set aside in liquid, go ahead and pay out on the credit card, get your 100 statement credit and you saved 100 bucks you're, not finding that on on debit Cards, if i'm wrong, let me know but yeah number two.

You are lacking a lot of rewards and points you're, not getting any points for cash back spending and again two percent here, five percent there, one percent most of the time, so you're really missing out all that money, that you've earned that you're spending is not giving You anything back in return. Number three is it does not help your credit if you live in the u.s, u.s is one of those countries where a credit score is important in your financial life. Unless you are super super rich and you don't care to have one, but mostly everybody, even if you are very wealthy, have credit scores. There are some exceptions out there: i'm not going to name any people, but there are exceptions out there who decide not to use credit, and i respect it.

But for most of us we do use credit. It does not help your score if you're using a debit card, it does not get reported to the credit bureaus every month if you're using your debit card correctly. So in your best interest, especially if you're trying to build or rebuild your credit using a credit card, whether it's a secured credit card or an unsecured credit card, it's going to be in your best interest. If you don't know what an unsecured credit card is versus a secure credit card, here's a video right here on what a secure credit card is how to get one if you're having issues applying and getting approved for credit cards.

Watch that video on secure credit cards. It's actually a better approval chance getting approved with a secured credit card versus unsecured number four are holds, and the word hold just doesn't sound good when it comes to money or anything at all, and it's primarily with hotels, gas stations, rental car places. Things like that. I don't know if you guys know, but there are some gas stations who will put a hold of about a hundred dollars or 100 to 125 dollars of a hold on your money.

Some gas stations will do one dollar. Some gas stations will do up to a hundred dollars to hold your money. Hotels will hold whatever they decide. They want to hold it's not just whatever they decide, but each hotel chain is different.

Wherever you stay may be different, some will be more expensive depending typically, if you're staying at a more expensive place, the hold per night or per stay is more expensive and that extra money, which can be in the hundreds or even thousands if you're staying longer, can Really add up and again your money is being held, so you don't have access to use it. So that's what you were going to use for spending money on your vacation now that money is being held. It's typically hold for about two full weeks, because seven to ten business days is two weeks real time. Yeah, it's it's a lot.

It's a lot um same thing with the rental car places they do a hold on it. Just to make sure you crash the car or something like that, they have some type of deposit. That's going to hold your money up too holds. Are you know just ridiculous as far as the amount we all have to pay them, but when it's on a credit card, your actual liquids not affected, so by any chance, if you did need to still use and get some money, you probably should still have some.

You know your debit card or get some out of atm. So yes, hold is number four number five and this one's not really talked about as much there's no extended warranties or any extra protections with using a debit card. Most of the time, a lot of credit cards will offer extended warranties purchase protection. American express is a great example.

They offer luggage reimbursement trip, delay insurance things of that nature. There are terms and conditions for all of these protections, but the fact of the matter is you have these options available to you at your disposal, which gives you more peace of mind as the buyer, when you're buying things right, a lot of debit cards. Don't have those protections so again, you're spending your hard earned money and you don't have any protection to back you up. It's another reason why i love to use credit cards and keep in mind guys again the best way to do this effectively.

So your benefits outweigh anything is to make sure you're making all of these payments and what you're spending in full that way, you're avoiding interest you're, getting all the perks and it's just like you're using your debit card, you're, just you're winning a lot more. That makes a lot of sense to me. I hope it makes sense to you guys. Are you guys team debit card or team credit card um? There is no right or wrong answer.

Everybody's mindset is different, but for me there's a lot of people that i know we would go the credit card route use it all pay it in full, as opposed to debit card route. Increased grist of holds fraud, not so many great perks and the money is pretty much the same. So i hope you guys enjoyed this video make sure you like share subscribe. Please share this video.

I think it's going to be really helpful for a lot of people. I will talk to you soon be safe. You.