Debit versus Credit Cards

 I had a question this week about debit cards and credit cards which is better? Like most things there’s pros and cons for both. Here’s some basic information. If your debit card is stolen or used without permission, it falls under the Electronic Fund Transfer Act. If you tell your bank before any charges are made, you won’t lose anything. If you tell them within two business days, the most you’ll lose is $50. If you tell them after the two-day mark but within 60 days of getting your statement, your maximum liability is $500.But if you tell your bank after that 60-day point, there’s no limit to how much you can lose. Now if your credit card is stolen or used without permission, it falls under the Fair Credit Billing Act. If you tell the company before any charges are made, you’re not liable for anything. If you tell them afterward, the most you can lose is $50, and it probably won’t even be that. That’s because the four major card companies — American Express, Mastercard, Visa and Discover — all have $0 fraud liability policies. A credit expert says with debit cards, that’s your money that was stolen. With credit cards, that was the bank’s money that was stolen. When you use your debit card at the grocery store for example that money comes out of your account right away. With a credit card there’s a wait as the charge goes through the company like Visa ect. Other things to consider, a credit card builds credit if handled properly, where a debit card does nothing with your credit score. Alright I hope that clears up some of the confusion around credit and debit cards.