theBlackman on 1/9/2009 at 01:28
BA is right, as usual. :) If the cash is not in your account, then your card is just a piece of plastic. It also transacts with no fee to you or the business you used your card at unlike a "credit card".
The "Debit" is the same a writing a check. If the funds aren't there, the debit is denied. So, unlike a check drawn against insufficient funds there is no over-draft protection on the card because no transaction takes place.
A check may go through the system, be payed because you have OD protection, or it is denied and you get charged a handling fee by both the bank and the business you bounced your check at.
Aerothorn on 1/9/2009 at 01:43
The problem with not having a credit card is that it become very difficult to "establish" credit. In the USA, at least, we work on a "guilty until proven innocent" system when it comes to credit, and having no "credit record" seems to be the same as having bad credit.
Now, you may say "So what? I don't plan on borrowing money, so it doesn't matter what my credit is!" Except sometimes you need credit for things that don't involve borrowing money. When I got my first cell phone, I couldn't get any of the "good" plans because I had no credit history - I ended up having to funnel the purchase through my mother's credit card.
It's totally lame, to be sure, but that seems to be the way things work around here.
Queue on 1/9/2009 at 01:54
Quote Posted by Nameless Voice
And, out of curiosity, how do you buy goods over the Internet?
Also, you shouldn't have to any pay interest if you pay the bill on time.
Same as Blackman, I don't buy things over the internet. And, if I can't pay for it in cash or with a debit card, I don't--that avoids interest just as well.
Having a credit card is just too tempting to over-spend (because what will it hurt if I buy this little thing? I can just put it on my card and pay for it later) as all of those little expenditures add up: ten bucks here, five bucks there, and soon I've spent three or four hundred dollars I didn't need to spend.
Quote Posted by Aerothorn
The problem with not having a credit card is that it become very difficult to "establish" credit. In the USA, at least, we work on a "guilty until proven innocent" system when it comes to credit, and having no "credit record" seems to be the same as having bad credit.
The Catch-22 is that they only work toward your credit rating if you make the monthly payment (and pay interest), not if you pay it off every month.
But, nor do paying your phone and electric bills on-time.
fett on 1/9/2009 at 02:09
Even trying to get a house loan right now, it's like your credit rating sucks because you're not in so much debt you can't live within your means. BECAUSE I pay my credit cards off every month or early, my credit rating doesn't improve. :confused:
mudi on 1/9/2009 at 02:11
Paying off credit cards in full every month still helps you establish credit...
Aja on 1/9/2009 at 03:13
I added a helpful "credit card scams" tag so that if anyone's ever searching TTLG to see if we've had any discussions about credit card scams, they'd be sure to find this thread.
Scots Taffer on 1/9/2009 at 03:26
LOL WTF at Thief13x's custom title
Fafhrd on 1/9/2009 at 03:40
Quote Posted by mudi
Paying off credit cards in full every month still helps you establish credit...
Establish credit, yes. But your credit rating remains pretty static. In order to improve your credit you have to maintain a certain level of debt. If you're paying it off completely every month, then you're not in debt, so credit companies can't make a rough estimate of how much debt you can safely handle. I'm sure somebody other than myself has a better idea of the maths involved, as I'm amongst the virtually creditless. Apparently having a mobile phone for 4 years does sweet f a for establishing credit. Presumably the $10,000 car loan does, but I'm only about 5 months into that and I haven't needed anything else on credit yet.
Swiss Mercenary on 1/9/2009 at 03:59
Quote Posted by fett
I'm not sure you understand what a debit card is...
I do. I use one frequently. I also have a credit card. I was just always told that in the US, debit cards are just credit cards with the option of drawing from your account, rather then borrowing.
SubJeff on 1/9/2009 at 06:41
So in fact you don't because you were told wrong.
Its so easy to not pay interest with CCs these days. I've only had one for about a year and I can transfer money into the CC account online. I get emails reminding me that my statements are ready online (my accounts are all paperless or "green") and I pay there and then.
What's the big deal?
