What Banks Don't Want You To Know 💳 Why I Don't Use Debit Cards
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- Опубликовано: 20 июл 2024
- 💳 Sebby's Card Picks: asksebby.com/go/cardpicks 5 Reasons to use credit cards over debit cards.
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0:00 Start Here
0:47 Financial Risk and Liability
2:00 Cash Back
4:35 Losing Value
6:03 Benefits
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💳 Sebby's Card Picks: www.asksebby.com/credit-cards
My (now) wife thought I was crazy and weird that I was so into credit cards and points. But after a 12-night honeymoon on three islands in Hawaii, where all our hotels and first-class flights to/from LAX were covered with points, she finally got it. Would have been about $7,000 if we had paid all of that in cash. Granted, we might have stayed fewer nights, flown economy, and not stayed in hotels like the Grand Hyatt Kauai, but that still would have been about $3,000.
Is the GH Kauai worth a visit? :)
How did you all manage to make that happen? The best I was able to do was saving a few hundred dollars from the initial bonus offer.
That is a lot of savings, you didn't mentioned how long it took you. I have a number of 2% cash back cards and an Amazon card that does 5% cash back on Amazon and 1.5% on other purchases. I use the cash back feature on Amazon just to reduce the costs there. The other 2 cards that are 95% of my spend which is about $10,000 a month generate about $2,500 a year in rewards. It would take me 3 years to get to the $7,000 credit value that you mentioned.
@@billw5823 Travel cards is how they did it, not cash back. You also get there faster by having your food and other spend categories receive multipliers higher than 2%, like 3x back with Chase or 4x with Amex. Then transfer out points to airline partners, book a first or business class flight, and that's how you redeem all that value in less time.
I'm about to do something similar, just not as long in duration. Probably 5 nights, but VERY last minute. We just had our kitchen completely gutted/renovated. Wife is now 29 weeks pregnant, but wants to go to Europe before baby makes his entrance. I'm booking round trip business class with decent accommodation in Rome, all using points, for what would be equivalent of a few hundred less than 2 round trip tickets in Economy in terms of airline fees for the round trip J class tickets. At first my wife didn't really understand it either, but with our most recent trip to visit her family in Thailand and me using points to book Premium Economy with Delta outbound and JAL inbound, she started to understand how it can work. Also, me understand how to extract some excellent value out of the myriad of transfer partners definitely helps. All I know now is that Flying Blue needs to make more transfer or award flight sales from the U.S.! #AirFranceBluePlease
There's 2 main reasons why I prefer to use my credit cards for everyday spend. One is not just the fraud protection but that money that was fraudulently taken was not my hard earned money initially. It was the credit card bank's money. And #2 is I love getting easy cash back and doing luxury trips for pennies on the dollar!!!
But there are actually debit cards that do offer fraud protection..both my debit cards(one visa and the other mastercard)and I do get fraud protection with both.
@julianmarshall2127 oh I understand! I have a PenFed checking account and a Charles Schwab checking account. Both are awesome accounts!!! I've experienced fraud on both accounts in the past and both handled my claim fast and I got my money back very quick(few days). My problem is that's my money. My hard earned money in those accounts. And I have to wait to get my money back. I would rather wait to get the bank's money back because I can careless how long it may take. Because it ain't my money!!!!
@@julianmarshall2127 The laws on the two types of payments give credit cards stronger protection.
Watch Dave Ramsey’s squad descend on you lol
😈
@T. Nelson basically, they permeate all financial discussion spaces on the internet.
Here 🙋🏾♂️
Every time credit cards are brought up on his show, he says to use debit cards instead since they provide THE SAME protections as credit cards. No one else claims this. Is he lying? Or just entirely uninformed?
🤣🤣🤣👍
Even if you're not gonna play the points/rewards game. I like the credit card as a "buffer zone" between my purchases and my checking account. Maybe I'm weird, but I like seeing a small number of transactions on my bank statements-- mortgage; other bills that require a checking account, cash withdrawal, and CC payment.
I’m with you on the buffer zone thing. I also prefer to see fewer transactions on my checking account statement - - - less clutter.🙂
Main reason for credit cards is so nobody else can touch my actual money if somehow the card gets compromised. The perks of using the credit cards is that basically any travel that I need to do (and would already have to do without credit cards) I can subsidize (or eliminate completely) what I would pay in cash.🍕
🍕 If you're someone that can be financially responsible, credit cards really are no-brainers. I still cringe every time I see someone using a debit card these days lol. Great video as always Sebby!
🍕I grew up in a lower middle class house too, we never traveled anywhere. Motels once in a blue moon while visiting family in state. I haven't been anywhere further east than Hawaii, south than Panama, and West than Bermuda, but we are getting there! Last year we stayed at Waldorf Astoria in Park City, leaving the day before winter hit, and loved it! Partially due to credit card rewards (and good wanderlust genes).
🍕 I always wondered how people flew in business class without paying those outrageous fares. So I watched your videos and ended up getting the Capital One Venture X card and used the sign up bonus.
🍕🍕🍕 I leaned about the power of points a year + ago and have been learning more everytime a new offer comes out! Thanks for the great video! Hope pizza was good!
I booked my first points trip last night on business class to Europe. Saved over $9k.
🍕 Wait, so there are 8 cash households for every credit card household? Woah! More people need to get on top of their spending habits. Way to keep spreading the word, Sebby!
Thank you for that points chart for flight classes! Very helpful!!!
I started washing videos on fix my credit now I have 30 credit cards 💳 with my business and my wife and travel around the world this march we going to Maldives the ritz Carlton and Dubai thanks for all the tips you bring to the community 🍕
🍕 love your videos! Started watching a few years ago and I can't wait to take my first first class flight later this year 🙌🏼
🍕 great explanations. You definitely put some things on my mind.
🍕. Cards have allowed us to travel to many places we normally would have never even thought of.
P2 was hooked after visiting the first lounge where she could have anything and not have to pay.
Thanks, Sebby.
Nice!!
Minute 12:05 game changer, mind blown, money shot. Thanks for this!! Great video!
🍕just starting out with points and loving your channel.
🍕 I love credit cards for all the points and miles sure but it's the buying protection or like primary car insurance coverage that really makes me feel like its worth the cost!
Everything you say is SO RIGHT and spot on! Never thought I qualified to visit an airport lounge! WAS just paying almost everything with debit (which did not even have cash back reward). My sister recently discussed the advantages of credit cards to me, especially with the tons of travel I am doing now. Now have Amex Plat; Amex Gold; Chase Sapphire Preferred. Met the SUB on both Amex easily with recent travel; and paid amounts off as soon as the statement generated. THANK YOU SEBBY and I thank my sister OFTEN. 🍕🍕🍕
If you have self control, know how to budget, have a stable job that allows you spend, pay cards on full , and know how take advantage of rewards cards the credit cards are definitely the way to go for you.
Great info and great job Sebby! Been enjoying your channel for years. :)
Great vid, comment for the algorithm 🤙🏼
🍕Great Content! Really interesting on the CC vs Debit card comparison... Thanks for the great Info
Now that I got the Bilt card, I run 100% of my transactions through credit cards.
🍕 When I was younger I was in a relationship with someone I couldn't say no to and ended up in a lot of debt. When that relationship ended I realized I needed to change my thinking. That's actually about the same time I found your channel and started to learn how it could be better. Now I'm planning trips all the time. My wife just shakes her head and rolls her eyes, but she enjoys the trips so I'm sure it's just for show. Maybe someday I'll convince her to join the game.
🍕 Just getting in to and learning this points game so thank you for the good content and advice. Player 2 and I just have the Amazon Chase, Citi Costco card, and a few others. We thought we are doing pretty well in last 10 years in terms of cash back. However it seems like we are missing out on the business/first class travel experience where points is better than cash like you said in this video. Would be interested in learning how to maximize two player signup bonuses for people like us that have good credit and use cards but haven’t opened up a whole bunch. However in last 6 months, got a Alaska air card for companion pass points and Venture X card for some lounge access and low risk points. Rather not get limited by 5/24 or things like that. Also, we have a young 3 year old too so any tips would be well appreciated. Keep up the good content. Thanks.
🍕 i just started my credit journey (actively looking for deals, joining community, etc etc) even though I'm canadian your content was very good starting point for tips and tricks.
Keep up the great work :)
Awesome!
🍕 For the unbanked- the cash/card divide is even worse. In New Jersey, check cashing places charge a max of 2.21%. Whereas someone who has a free checking account and charges everything to the double cash gets +2% back. That is a 4.21% difference! Not including any interest you get from the checking acct/HYSA. (of course assuming all expenses can be put on a credit card which is often not true)
Nice video😮🎉
🍕 Thanks Sebby love your content.
🍕That was a great video thanks for sharing, question and its kinda off topic what would be a good Japanese whiskey or bourbon looking at taking a trip this time next year to Tokyo. Thanks and keep the great content coming
Premium gas is a marketing scam, it's not premium in any sense of the word. It's really just a higher octane formulation that is required by some engines that have higher compression ratios (e.g. turbocharged engines), if that's not your engine there is no benefit to using higher octane fuel, and it may even be detrimental.
It's simple, ignore the marketing BS and just buy the fuel your engine was designed for.
Something I’m starting to notice is a lot of establishments are doing a “cash discount” where if you you pay with cash you pay 2-4% less than if you pay with a credit card.
What do you do at these places? Do you pay cash or pay the fee?
Gas stations
🍕
Thank you for these videos Sebby!
🍕 excellent information. Im looking into venture x for travel.
🍕Another great video, Sebby. I'm hooked and am slowly but surely getting my wife to play along.
I was totally team cash back and sign up bonus being younger and now. I want to travel and don’t mind the annual fee cards but I feel I locked myself out of slot of bonuses
🍕 Thanks Sebby for your vids! Credit cards allow us to pay less for the stuff we buy daily. I convinced a lot of friends after getting reimbursed for the late luggage arrival and flight delays several times.
❤ Great video. Lancaster PA is two hours from me. Using CapOne Quicksilver & AmEx BC Everyday right now. Love your channel.
LOL I can’t believe you just used a knife and a bottle of alcohol as a simile.
🍕 Fun one. I kind of agree that credit cards are a transfer of wealth from people who don’t know how to use the rules over to people who do. That is true for almost everything in capitalism. These are the rules of the game. Until the rules change, your best option is to play in the way that lets you and your loved ones win.
I use credit cards as a form of advanced couponing.
Without credit cards, I would still travel, and I would
still occasionally do luxury vacations. But, with points & miles, I can reasonably shoot for 3-4 luxury vacations instead of 1-2 per year. Maybe more.
🍕 awesome info
🍕 until a couple of year back, I avoided any cards with an annual fee.
Now I dont mind them as much, as long as I can get enough value with my natural spending
🍕 Love to use credit cards for aspirational travel. Amex platinum and Chase Sapphire Preferred are my two workhorses, but also have Alaska Airlines Visa (hate BofA though) and Aeroplan MC which is a boon when using partner airlines. Trying to teach my twenty-something daughter how to figure out the cc game, but usually will send her links to your videos. 🤣Younger people want gaming, electronics, food delivery, streaming service perks than points to go to Bora Bora and besides, she probably hopes to get a free trip from dad. 🤨
🍕Thanks Sebby - very informative :)
Thanks for watching! :)
We just got back from our luxury stay at the waldorf los cabos and all we did was wonder how much the couple in front of our deluxe ocean view room made to stay for a week on an ocean front property that cost $60k for 7 nights lol. We booked with rewards for 3nights for a stay that would've been $8k
🍕..great info..👍🏾
🍕 I like credit cards for the travel perks, mostly; lounges, hotel status, etc. Transferring MR points out to Marriott was actually getting me 1.8-2.5 cents per point last year, too (mostly staying at Ritz-Carltons). My Player 2 didn't need much convincing. She's from Eastern Europe, where rewards credit cards aren't a big thing, but she has wanted a Centurion card since before we met. Speaking of which... How's that guide coming?
🍕 ha ha , great videos as always, are you from NJ? 😂 driving to Pennsylvania outlets it’s a great trip 👍😂😂😂
🍕 so many great tips... 🙏
🍕 Very information video and justifies using a credit card. I did not know the debit cards offered so little protection. It’s a no-brainer to use a credit card instead 🍕
🍕 Love your videos! If you’re not finding value with a card that has an annual fee, when can/do you downgrade?.. After the first year?
Sebby the goat 🐐
Long time lurker here, and I need to thank you for introducing me to this wonderful world of credit cards. :) 🍕
The reason I like it is that mathematically, it simply optimizes your lifestyle. Assuming that you never overspend beyond your means (and arguably should be under your means), you get some pretty insane benefits that makes daily life and travel easier. A 5% discount on gas adds up over a year. A free lounge stay on a credit card means spending $20-30 less at the airport for food. All of these are some incremental savings that really does add up over time.
And, for the other end of it, the discipline you maintain in making sure that each credit card is fully paid off-no question-at the end of each month is always a good, satisfying feeling come pay day.
🍕 - Great video topic!
🍕 for me it’s a weird story. When I started dating my wife she had got the Venture card and got 50k points. That we used the eraser option to pay for a flight to NYC. That’s where I got hooked and started looking up CC and stumbled onto your channel. Since then we have over 40 cards between us and get to travel in BC and FC all the time. Thanks Sebby!
Over what time period did the two of you amass 40 credit cards?
🍕 I’m getting hungry! I’m having chicken for dinner. 🐔
I love credit cards! I have gotten so many free flights which I think has been amazing! I have watched your channel for a very long time and have learned a LOT! 💳 ❤️
My dad talked me into getting a credit card so I could begin building my credit. Before then I was in the Dave Ramsey camp bc I was afraid of the debt and some people I was close to were in debt. This was before I knew about the stronger fraud protection when compared to debit cards. Had my first card (the first on my own account rather than being an authorized user) for almost 2yrs and never missed a payment. Got very good credit and I use it instead of my debit card most of the time.
Question: Why do you like/love Credit cards.
Love being able to obtain points to redeem for travel or pay yourself back on things I already buy. Love purchasing protection and extended warranty of cards like those from Chase/Amex. Love the fact that when I make a purchase of the credit card, it's the bank's money that gets taken. Not mine. Banks are more inclined to get their money back than mine.
I'm not married yet but want to get married to a woman who also sees the value in this setup. And is also financially responsible.
Hi Sebi! New subscriber here! Thank you so much for all the tips and tricks, the info you share here! My hubby and I are getting ready to take a 20 day trip to Europe with my 2 kids; it is going to be a sweet sixteen gift trip for my daughter and we have been saving for this trip for years. Since for all 4 of us is going to be around 24K just for the "all-over Europe with all meals, hotels, transportations, etc included" plus the airfare tickets, we are considering opening a couple of credit cards to take advantage of this gigantic spend. if credit score is very good, which credit cards would you recommend for this? We are in Detroit (Delta hub). Thanks in advance!
🍕I hate making ATM runs and carrying loose change. Credit cards freed me from carrying bulky wallets and offered all of the additional perks and benefits you touched on. The consumer protection rules also make it a no brainer.
I have one kept at home and use it just for a little cash...a $20 in my minimalist wallet and $40 kept hidden in the car along with a few dollars in coin change but that is it for cash out and about. If I have to use the $20 in my wallet I swap stuff between that and the car stash but never let that total grow much past $60 between them, spending the excess on probably a small food or drink item. Credit cards are the mainstay of spending.🙂
🍕 my friends never understand my credit card nerdiness, your video helps explain it lol.
Hey Sebby question I have the Marriott Bonvoy Boundless card and I get I think 15 elite credits for having the card and I was looking to try and get the Marriott Bonvoy Business American Express Card if I get approved for that business card can I combine the 15 elite credits from the Boundless w/the business that also offer 15 elite credits and the 15 elite credits for just holding the card so I can climb status faster (so I wont have to do alot of spend for rooms) Thanks for your help and once again keep the content coming!
🍕 finally sebby fung has a new vid
🍕Sebby I swear to god when you said frozen pizza it reminded me that I have one and want to eat it tonight. It’s the exact same one from traders that you have lol. You have good taste :)
😋
🍕love your channel🍕
For many years I was in the camp of believing credit cards are evil and make you slaves to banks.
Now I regret not realizing the benefits of Credit Cards sooner, especially as I'm the kind of person who looks at spending money mathematically and never impulse buy.
I am always interested in researching a topic before either buying a product or signing up for a membership. I use the Amex Trifecta and know when to use each, looking for deals as they come. I ended up also getting a chase sapphire preferred for my trips outside of the US. I've taken 5 international flights last year with some national flights. Most I've ever flown in a year. I uber a lot, the list goes on and on in all the benefits I receive.
🍕 Outstanding video!
Glad you enjoyed it!
We need a Trader Joe's card :D
If I use a debit card I run it as credit. Dont want pin to get stolen.
🍕 Love those free statuses! That alone is usually enough to justify some of the cards I have. Then add the credits on top, and I very much thank debit and cash users for subsidizing my free lunch, lolz.
🍕 I love to have upgraded experiences cards. My family also drove to Disney World in Sea World, or Six Flags once a year. I didn't fly until I went to college. Since leveraging credit card perks, I have been to Tulum, London, Belize, Niagara Falls, Vegas, and Miami flying business class or having Priority boarding. I convinced my player two once we started saving money on family vacays and couple getaways. I th8nk he didn't think we'd be able to use credit cards responsibly because both sets of our parents were anti-credit.
🍕 Another great video.
🍕 Another awesome video
🍕you are one of my favorite credit card channels.
🍕 love this guy
I went to Ottawa with my family for 4 economy tickets for 92 and 104k aeroplan miles instead if 2400 cash and saw family I hadn't seen in 20 years the credit card game is easy money
🍕 I got intobthe points game in 2007 when i stayed at the W in Atlanta back when the weekends were heavily discounted. Loved the experience and the idea of staying at these hotels for free.
Got the AMEX SPG card in 2011 and it was all she wrote from there.
Got my player 2 in the picture by her traveling with me for years before I decided to include her so we can earn more points and travel more to places we couldn't truly afford!
the 2 main big reasons for me is one, I do agree its like if it something that are going to spend money on anyway. why not get something bak, in a way if you thing about it credit card points/ cash back is a very small version of micro saving/ investing if you think about it.
2, credit cards actually train my brain to pay them of right away. yes I know there's that statement of credit card is money that you don't have some it makes you spend more then you have and buy things that you don't need. yes, thats true, but for me if actually helps me. yes everyone is different and thinks of things differently.
And a big plus is the liability for card fraud, getting you money back of a debt card is such a hassle,V.S. a credit card.
I think it’s insane how much free stuff you can get as an active duty military. I have all premium credit cards such as the plat, reserve, hilton aspire and more with no annual fee. Access to all lounges even though I don’t have American airlines admirals club they still let me in with my ID. Free checked 3-5 bags and priority boarding. All that’s missing is free first class upgrade 😅
Yea I could imagine getting all those cards with no annual fee, really supercharges your game👍
🍕 Weirdly enough the extra money, perks, or fraud protections had no role. I simply saw the cards as something you could collect and I simply wanted one from every bank. Plus, parents both encouraged it so I could learn to budget more effectively. It grew into a hobby when I noticed how rewarding it could be between signup bonuses and matching categorical spend. Really though, it’s probably just a distraction to keep my mind away from the more mundane reality. Few years later, now I am the one encouraging (or getting others excited) about cards for much better reasons :P
I need to get a different credit card so I can start earning points towards that flight to Thailand I want to take
🍕 teaching player 2 how we can make our future travel plans way more affordable is how I got them hooked and credit card protections are a must
Next step: taking Player 2 on a trip!
Very on character for sebby to have Mr black
🍕A lot of the Four Seasons, Fairmont, and Shangri-La hotels are part of the Amex FHR program and could be paid for with Amex points. The Four Seasons in Beverly Hills in the video isn't part of FHR, but the other Four Seasons in Beverly Hills is. It may not be the best use of your Amex points at a value of 1 point = 1 cent, but it is possible to stay at these exclusive places with points.
🍕 I am... wowwy. Still in high school, but it's good to learn how good credit cards are. Should probably think about applying for one. Though, I'm currently super into keeping life simple, and all of this sounds so... spoopy. Lol.
🍕 Hell yeah Sebby, frozen pizza dinner gang lol
Dropped Knowledge
I’m amazed by the large # of people who use debit for transactions. Even in the office cafeteria where most people have a decent income/education, I normally see people using debit. I guess they are afraid they may go into debt they cannot affford.
My daughter and I stayed at a Fairmont by booking on American Express Fine Hotels and Resorts. Saved a few hundred dollars.
🍕I’m in the same boat, I can’t remember the last time I used a debit card!
🍕🍕 I use cards because I like to travel. Although I'm still a newbie. I only have the capital one venture x. I just got the CSR for the welcome bonus, but prefer the venture x due to multipliers. I'd like to juggle more cards, but am afraid I wouldn't be able to keep them all straight.
Wife and I are finally going on our honeymoon 3 years after marriage (thanks COVID) and we were able to get business class using points. ($1000 worth of points plus $450 in fees vs 5k all cash price).
I have finally understood how valuable Credit Cards are once you master how to benefit from it. I have also realized that if we don't change they way we think, we are not going to be able to succeed in life. Thank you Sebby.
"Credit cards are kind of like alcohol or a knife..." hahhaha! so true!
My gf is Thai. I booked flights to Thailand from DC with points. 2500 dollars worth of flights cost me 200. She said, wow. I think she's interested in getting points
🍕🍕I like credit cards because channels like yours have shown me that I can benefit from them over a debit card with a little bit of strategy.
Is amex debit card worth while.?