Agreed.
I had thought over the idea of getting a CC. Ultimately settled with a Debit Card as it provided, in addition to its normal features, a reality check: "stay in your income limits".
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Even though I work in a bank myself, I didn't opt for the credit card until at least one year after my employment (I'm financially disciplined - unless when I have to buy a new phone, which I don't do more than once a year, and spend 40k or something - but I digress...) and used to use my debit card all the time.
I'm going a bit off-topic, but very quickly:
Pros of CC:
- unlike the debit card, the connection is always established (debit cards are way more prone to "link down" messages, in my experience).
- if you don't have any balance in your account, but need to purchase something badly, use the CC. You're not entirely bound by your account limit. But make sure you pay the bill.
- internet purchases - not all banks (locally) allow you to use your debit card online (and those who do, only permit a small time-window).
- you spend, and get reward points. You can encash it for some products (I've done it), or use it for discounts (some are available on debit cards too).
- you get a credit shield (in case of incorrect charges), and you get to see your statement before you pay. Can't do this with a debit card.
Cons:
- go watch the movie "confessions of a shopaholic". You'll see how credit cards can be bad. It's a chick flick, I know, but it tells you the weakness very well.
- don't even think about withdrawing cash from an ATM using your credit card - you'll be charged interest on the amount PER DAY, and it's not cheap!
Pros of debit card:
- you won't go overboard your account balance.
Cons:
- the link doesn't always work
- no rewards system (points); and as far as discounts are concerned: depends on the bank.
- need to pay a medical bill of 15,000 but your account only has Rs. 2,413? Good luck with the debit card.
- was your card accidentally swiped twice, but you paid once only? Good luck getting a refund. You don't get a credit shield with debit cards, since funds are deducted immediately (it's happened to me, and it was after this I decided to rely solely on credit cards instead).
In case it's not clear, I use my debit card in the ATM machine, and credit card and cash everywhere else.
I'll help answer additional queries - but off the board. We wouldn't want to clutter this thread anymore. But - as [MENTION=136639]zafarabbasrizvi[/MENTION] said, using carrier billing (which is cool!) on prepaid is a total waste since you have to pay ~25% to purchase something which ordinarily wouldn't cost you as much via a credit card - or even via postpaid (but in case of refunds, postpaid users get their money back after 5 days, prepaid users after some hours, and credit card users almost instantaneously - so long as you claim the refund within the 2 hour window).