I asked my bank to automatically pay off my credit card in full at the end of each month. (It might help that my credit card is affiliated with my bank, I'm not sure.)
I've never come close to spending near my limit, so I don't know about an overdraft fee. I assumed it would decline further payments.
My credit card gives me reward points for money spent on it. Having a credit card that I keep paid helps my credit score.
I make some tiny amount of interest on the money in my account each month. I might as well collect that before parting with the money. And it's not like credit card debt accrues daily.
>If a purchase (fraudulent or not) exceeds your current balance, the payment won’t process
>But that is a good thing.
In case of fraud that's a bad thing because your cash flow is now screwed until the dispute's resolved. What do you do if you have $1000 in the bank, you get a fraudulent charge for $600, and this months rent of $800 is coming up?
Here in the Netherlands it is exceptionally hard to kick someone out of "their" home when doing so would leave them homeless. Being 1 month behind on your rent for 1 or 2 months may get you some stern letters, but you won't get kicked out if it happens once.
With debit you spend the money you own.
With credit you take debt. On every single payment. You are taking debt. Only at the end of the month you pay your debt.
If you spent too much, (by accident) you now have to pay overdraft interest.
With debit you spend the actual money you own.
If a purchase (fraudulent or not) exceeds your current balance, the payment won’t process.
But that is a good thing.
You shouldn’t be buying things you don’t have the money for anyway...