1. You can leverage others people money 2. You can borrow money for free 3. You build up your credit score credibility 4. You get rewarded 5. You are better protected
@@MikeThePike316 - not really, there's alot of things credit cards can do that debit cards cannot, i.e. extended warranties, price protection, cell phone insurance, primary or secondary auto rental insurance, travel insurance, lost luggage reimbursement etc. Not to mention credit cards can improve or establish your credit score. Debit cards do not.
@@docsays - I agree, but how necessary are those added services tho? I wager it's as necessary as giving a Texan free Volcano insurance. Also, credit scores only matter if you're trying to go into debt. I prefer cash. Different strokes for different folks, I guess.
@@MikeThePike316 - some employers and apartments require a good credit score. Also, the average person doesnt have $300 - 400k in cash to buy a decent home, thus they need for credit. yes, the insurance perks on CCs are nice, but i enjoy the 2-5% in cash back i receive from using a CC to pay for bills or expenses that must be paid. But yes, for those who cant handle the risk they should keep using a debit card.
I have the discipline, but at the same tome I dont like to play with fire. I prefer only spending the money I actually have and learn to better budget my finances.
Don't use a credit card for daily small purchases but things that are like getting items for your home or a plane ticket. But the key is pay off the amount you spent in the month you spent it.
Yeah I THOUGHT I was making more money than the interests charged too, until I collected a hill of debts before I realised. It is costing me my wedding and my marriage now.
I think the mistake people make is using your credit card before you have the cash in your account. I think the smart thing to do is use your credit card like your debit card. Spend the amount that is available in your bank account and then pay it off right away. Like literally the day of your purchase. You earn points and you don't have to worry about being late or anything.
I'm going to let you in on a secret. How much you spend on your credit card doesn't necessarily matter as long as you pay it off before it's reported to the credit bureaus each month
You don’t have to do that. Just don’t be a crook. If you agree to the terms of your credit card and you adhere to them, then you are not a crook. To me, people who own debit cards and/or cash only, are prone to being crooks. But obviously there are crooks who use credit cards, and give them a bad name.
Same I am 18 my mom doesn’t know I have one since she doesn’t like them and said I can’t have one she said I can have one when I move out but she doesn’t seem to understand you need a credit score to move out xD
I bought a cc from *Ericroboti* on telegram best vendor I know and very trustworthy. she sells cc,fullz,Bank,Drops,and Dumps and she also make PayPal transfer at good rate
I definitely use my credit cards for both building my score and getting points. And yes I do pay them off in full every month. I’m going to use them too for my future business.
1. Credit card IS NOT your money. 2. You have to pay interest for credit card money. 3. You have to remember to put money back to your credit card during grace period or else you'll pay interest. 4. Credit card IS NOT the only card that brings you rewards. Debit cards reward you too. 5. Credit card IS NOT the only card that can be better protected. You can use extended protection with you debit card.
Yea! Credit card things are more like legal scams! I can easily ask my bank for premium debit card or have a silver mode bank account( instead of regular savings bank account) and easily get benefits same as credit card.
I think after watching this, I believe you can save more money in your bank account by using Credit card. Put a limitation on your Credit card, be sure the limitation isn't more than your income and covers every primary needs in 1 month. Then pay everything with your Credit card until it reach the limit. Boom, you saved some money in your bank.
A credit card is good when you pay it back on time. Some people can't get approved for one credit card even though they want to build it up through expenses. All the reasons you mentioned are great!
I only use my credit card. A few years back one of my dads friends said " why are u using ur debit card, u get charged fees and dont collect any points". That's the day my financial education started. From learning about credit cards, to now stockmarket/option investing. Wow, what a journey and process
I'm scared of using a credit card please put me through I'm confused right now, can someone use credit card for business? Buying and selling please tell me
Debt can be leveraged if you know how the game works. You will never find any seriously wealthy person that has not used debt. I have tons of debt. I could reconcile all my assets to pay off all my debt and immediately the rate of the growth of my wealth would decline significantly but I would have no debts with free and clear assets.
Credit cards only work until the income decreases or stops, no matter the reason for the decrease or stop. I've seen so many people who boldly claimed to have mastered the credit card to ultimately see them buried up to their neck in debt as a debt slave because they were laid of their job or the market caused a decrease in business.
The key to credit cards is self discipline. Don’t spend all your money in your bank account and spend you credit card, only spend your credit card and only use the debit card to pay off the credit.
I don't disagree. I have credit card and I always pay in full before due date. Credit card companies don't earn from me! They keep on increasing my credit limit. But Im not taking the bait to spend more. :)
All those reasons you mentioned is why I use credit cards for 99% of my purchases. The biggest one for me is those sweet reward points I get back and I even count them as one of my income sources as I’m always able to pay off my credit card statements.
Paying off the balance at the end of the month is the same thing is paying with a debit card. The money is going to be gone either way. And you expose yourself to 28% interest. He's wrong.
I have started my credit journey with my first credit card last year. Also, being an authorized user from my parents actually helped build up a record even if I dont use the card or the fact i didnt have a credit history in the past.
Simple reason to NOT use credit card: its extremely high interest rates!!! Even if you repay in full every month, it is still a trap, because one day you might not be able to. Also, if you pay off completely at the end of the month, whats the difference with debit cards then? To say “you are leveraging on someone elses money” is a load of BS. This statement alone shows Dan Lok is not to be trusted. I used to be his fan, but i was ignorant back then. Not anymore.
you're earning reward points & cashback which debit card doesn't provide, on top of that there are many other benefits, but I agree with the risk of not paying off in time, since many people been laid off during covid. would be hard to get out of debt in that case.
If the benefit of credit cards is to leverage it by not using your money, but the catch it that you pay off your credit card to not accrue interest, are you really borrowing money for any good reason if you're just going to pay it off at the end of the money with your own money?
Dude I can’t believe I’ve only had this epiphany about getting a credit card today... like what have i been DOING all my life with just a debit card smh
Keep your Credit Utilization under 30% and your Credit Score will Jump. Believe me, I learned the hard way now I'm hip to when to pay and how to pay. Great Video!
use credit wisely... 30 - 45 day interest free... pay it off every month.. or if 'larger purchase' over 6 weeks pay it off. Even if you take 2-3 month to pay off provided the majority paid off within the interest free period, tiny interest is paid. ALWAYS pay on time! ! ! If paying over 2-3 months, do not use again in this period, as 'interest free period' does not include new purchases if there is already a balance. I use low interest/ no rewards/ no points so getting rewards does not apply but the interest is 5-10% less! The 5th reason of 'insurance' is the most important.
I always use cash and debit card for everything. Credit cards may be better for some small percent of people, but way more people get burned from using credit cards than the people that benefit from them. The whole business model of credit cards is for the credit card companies to make money off of the credit card holders. Their methods of milking people for money is way more malicious than any debit card.
I agree with you. It's the financial education that's lacking. I've been using credit cards for 10+ years and have always paid the bill on time. It's the discipline that matters. I've never a paid interest on any of my credit card purchases and I use my credit cards for literally 80% of my expenses, including rents. If you pay 100% of your bill on time, every time, the credit card companies don't make money out of it, you do.
@@Keepit-dy3yq thats when the credit card companies make money. They want you to spend the money you dont have, and then ask you pay interest on the item you didnt need. Break away from this cycle. Buy everything from Credit Card only if you can pay 100% of the bill value without paying interest to the bank. You will be amazed at how powerful this simple payment technique is. You save money by earning reward points and cashbacks and you never pay interest on any of your purchases.
You’re not really ‘leveraging’ other people’s money if you have to pay it all back every month. Borrowing others’ money just to then pay back using your own money seems unnecessary, just use your own money to begin with and avoid the bills
Well, you need to build a credit score if you want a low interest mortgage or loan so it's worth it! You can pay 26 percent interest on a new home of you don't have a credit ratings YIKES! It's long term thinking rather than short term. You don't need to use credit for everything! Just enough to build a good score.
But Dan The majority of people are broke because they use OPM but they never use them to actually make money. And the idea of credit it became a cue for laziness... When you are dressed like a kid in your bedroom browsing on the internet and you want to buy something online with your credit card is almost certain that you are going to buy something useless. In contrast if you would go in person to borrow OPM, dressed in a suit and you have a plan on what are you going to do with thy money, you are more likely to use the money on something useful.
I do not agree. Alot of people are not responsable enough to know the limuts of what they can afford & that creates debt. Not the best advice here dan. Yes credit cards have perks but does it outway the risk.
I don’t blame my mother for now showing me right financially but I believe the only she had to do was bring me to this world of opportunity. And she did a great job
If you're so worried..... You can always use your credit card as a debit card... as in don't buy what you can't currently pay off right now, but still reap the advantages of a credit card. All it take's is a transfer and weekly/monthly budget. If you have no self discipline or a toxic relationship with money don't bother!!
Probably is some kind of collaboration or something... Yes... What Dan said is true. But on the other hand everything he said can be achieved in other ways as well... Plus there is a propaganda of using cards and personally I don't like it. If I want to borrow the damn money I would go in person... Nowadays all the company that sells something useless are trying to get their clients by creating fantasy in their heads and the credit card is a convenable way of instantly getting the thing without hesitation. And even if you actually have discipline still at some point you will lose control. Because that's what they are selling you: emotion
@@DanLok A truth born from your very own subjective experience. Even if we assume that is the objective truth then there's still plenty of us plebs lacking the discipline as you put it so at the end of the day better a idiot then a idiot in debt.
The line here is - PAYING off the balance every month. If you cant do it, dont have a credit card. Simples. Debt free from credit card is the best feeling ever. Not going to apply for a credit card ever again.
All good points and agree, however when it comes to fraud prevention they all follow the MasterCard/Visa/Amex chargeback guidelines meaning that it is irrelevant if it is a debit or credit card since they can use the same guidelines to recoup the fraudulent funds. In the example used, one case is not the same as the other, if the transaction is done online from overseas then that is an easy case of a fraudulent transaction and there would be no issues with the issuing bank to lodge a chargeback on your behalf and provide a goodwill refund at the same time. In the other example of a PIN being used, then there is a liability shift that falls back to the consumer for making it easy for the person that stole the card to use it for fraudulent transactions as they had the PIN readily available to them. Depending on your standing with the bank they may write off the transactions from their own accounts and refund it back to you. Not trying to nit pick at the reason but I thought it might be useful if someone has fraudulent transactions occur on their debit card and are thinking that they cannot lodge the chargeback in the same manner as a credit card.
I get it but I don't get it. Because in the end aren't I just initially using my money to pay it off? I don't see the difference between that and using my cash to purchase from the start.
in simple words -credit card deducts money after some time ,so if you havent gotten your salary or you have exhausted it for this month, you can just swipe a credit card for a product and can pay it next month, its like a loan without any interest if you pay it properly next month
Also, if you ever want to buy a house or a car, a good credit score is something that’s very useful. Paying off your card on time will raise your credit score. Cards also collect free points which accumulate surprisingly fast and they can be used for plane tickets or other purchases. Debit cards charge fees and don’t offer anything else.
@@djmagn3m691 still can't get my head around it, let's say I've opened my credit card and been approved for 10k credit limit, I spent 200$ first month and pay it off when it's due, so each month I'll get a bill for the amount I've spent only? No hidden costs, or interests? What if I used my credit card for installment purchase, if pay off in time, can I avoid interests completely?
Credit cards aren't better than debit cards. Because most people are living paycheck to paycheck and can't really afford to pay that debt off. But with debit cards they pay it off once and thats it. But thats only if they have alot of money in their account. Credit cards are interest eating beasts who don't care about the average consumer and would take advantage of the person who doesn't know how the value of money works and how to earn that money themselves so they wouldn't have to payoff or be in the debt trappings of credit hungry companies.
It's all to do with self-control and discipline. It's like alcohol, if you use it right then it's fine, but when you lose control it's a downward spiral. Using a debit card is risk mitigation if you don't have solid self-control. I take it Dan Lok doesn't have a joint account and is good at managing money. Think of debit cards as training wheels - are people with bikes with training wheels stupid? Only if they could ride the bike without them. However if you know you can't ride a bike without them then you're stupid not to use them...
@Emad Ahmed You could use it on what you'd pay for in debit at that time and just pay it off immediately once it is processed to ensure you don't spend over. Also having an emergency fund helps if worse comes to worse and that's the case even without having cc.
As long as you pay things within your means that you KNOW 100% sure you can pay off in full (on time of course) you will close to never if not EVER be in trouble. For example, I've had a credit card since 1999 (its currently 2024 since I wrote this) and not ONCE have I paid interest, becausr I always pay in full and I average $300 to $500 cash back every year eith a credit score of 800. Debit cards will NEVER do that. If something happens, the person being robbed is you on a debit card, but credit card u are spending their money, not ur money.
Number 3 - Is the reason I am considering a credit card as my life has been a financial disaster. Now I am starting to build credit again. With good money practices now being used I am wondering if having a credit card, used wisely will help me with this goal.
Peasant: "How do I build credit?" Bank: "Get debt...and be in debt as long as possible." Peasant: "....but I wanna save money." Bank: "it don't work that way kid."
I got a PayPal loan. I find it so much better than credit cards. They gave me all the cash instantly. Every time I make a sale, they automatically deduct 20% to pay back towards the loan. It's more disciplined for me.
You lie. I agree with the benefits of credit cards but we Nigerians don't believe in it. And that's not a reason to call debit card owners idiots. Those with debit card manage their finances more better than those who use credit card. If you are out off cash you should hustle for more, stop incurring more unnecessary debt for yourself.
@@logandavis954 Exactly, with a credit card you have to pay them back anyways and people who are irresponsible with their money will probably end up in more financial struggle than before as they now have to owe the credit card company more money. With debit card you are in control of your finances.
@@djshockafrica4330 right, but with credit card you lose your discipline as you can just keep borrowing money. Debit card you really are having to develop financial discipline as you are in charge of your money and no one else, so no silly spending will take place as you know that money will be gone as opposed to credit card where you borrow money to allow for silly spending.
I switched to credit card about a year ago. My credit has gone up nearly 100 points because of it. I also make money with them from the cash back. I pay nothing in interest because I pay it off every month. Wish I had started this years ago. My daughter is turning 17 in a couple months. Going to add her to my account and get her her own card I'll control. So when is ready to move out she will have decent credit.
@@Rick-kv3gl but why use credit card in the first place when you (have the money) can already pay it off with your debit card. And isn't there an interest rate in using credit cards?
I've traveled a lot for business and it's great to use the company credit card because I get reimbursed for my expenses every month and I can pay off the balance entirely. It's like getting free credit score upgrades and reward points every month.
I prefer credit card. To make it simple as possible imagine your entire vacation is 2000. You will not pay any of that until 28 to 52 days after your vacation. And if you pay the minimum for a couple months then pay it off you have more cash with you.
There's NO WAY you are going to convince me that for example, somebody has $100K on a VISA DEBIT which is routed to their savings and checking account via a credit union that is giving you 2.2% interest on your deposits is not better than having a $100K on a VISA credit card with a 20% APR rate! LOL If I'm wrong, then I stand correct and I humbly submit to your financial advice. Cash is king, credit is only king if you are using it for business purposes. As far as your personal expenses besides travelling it can get you into a LOT of trouble.
This only applies to entrepreneurs or businesses. Credit cards basically means more cash flow and more incentives. But unless most average people doesn't send enough money for it to matter.
With Credit Card Yes you can leverage other people's money, but it is short term. You also need to leverage to ensure you are working that money as well rather than spending it on holidays for example. Debit card helps you control money if you feel like you are spending out of control on credit card. There is no right or wrong, different tools for different people.
Dan I love your sales videos but this one you're wrong. All the data shows that you spend more money when you use a credit card than with cash. The borrower is a slace to the lender. Your most powerful wealth building tool is your income and if you give your income away to the credit card companies you don't have it anymore duh
You can stab a person with a pencil or you can write an awesome business plan and execute it. Don’t blame the credit card. It is just a leverage. How you use it is your responsibility. It is human nature to blame everything and everyone else except yourself.
Use it along with a budget plan and track all expenses to ensure you aren't spending too much. You can screw up and overspend with debit too, but then you get overdraft fee or find yourself desperate for crap like payday loans with high interest rates. So it's all about money management!
I think a debit card is useful if you can't control spending. Otherwise, the protections on credit cards far outweigh that limitation, and the perks of credit cards also tip the balance in their favor. But, as Dan Lok says, that's only if you pay it off every month.
