Banks

[roadwreck]

I'm not a big proponent of using a debit card in lieu of a credit cards. I use credit cards all the time. I prefer to use them over debit cards for the simple reason that if somehow my credit card is stolen and misused I can dispute fraudulent charges without my bank account being empty. With a debit card the money is automatically withdrawn, and so I would have to fight to get it put back. But I never carry a balance on my credit cards.

If you don't have the discipline to use a credit card as if it was a debit card or cash then you shouldn't be using one. If you use a credit card to take out loans (such as the person in the original story) then you are subject to whatever policies the lender decided to impose. If you don't carry a balance, then you don't get stuck paying these "gotcha" fees.

 

[Chucktown PE]

That's a great idea! I'll just pull a couple billion dollars out from under my matress and do that.

You don't need a couple billion dollars, you could go loan poor old Lee Frizzell $12,000 and start charging interest on it. The question you have to ask yourself is "would I loan this guy $12,000 at 3.99% interest?" I can tell you my answer to that question is hell no. But if you are so torn up over it, you could start a "bank" with relatively little capital.

But I don't have a couple billion dollars. That's the problem here--there are tremendously high barriers to entry into this market, so there isn't much competition becuase not just anybody can jump in (though I hear peer-to-peer lending is making an effort to catch on). So we end up with the people with all the money making all the rules--and of course those rules are designed to extract the maximum amount of money from us with the least amount of risk to them.

Really? It looks like there is quite a bit of competition to me.

http://www.indexcreditcards.com/creditcardlist.html

 

[wilheldp_PE]

Ironically, I had a disclosure when I got home yesterday from one of my credit cards that I hardly ever use. They were raising the interest rates on cash advances and defaults. Seeing as how I have never taken a cash advance, nor have I ever paid a bill late, neither of those rate increases bother me in the least. The only reason I still have that card is that it is my oldest card, so it keeps some longevity to my credit history.

 

[Capt Worley PE]

Seeing as how I have never taken a cash advance, nor have I ever paid a bill late, neither of those rate increases bother me in the least. The only reason I still have that card is that it is my oldest card, so it keeps some longevity to my credit history.

I'm the same way with the charges. I pay off the balance every month, so they don't affect me.

I have only one card, but I've had that one since 1989, and my BIL says that looks really good on your credit history.

 

[MGX]

I'm not a big proponent of using a debit card in lieu of a credit cards. I use credit cards all the time. I prefer to use them over debit cards for the simple reason that if somehow my credit card is stolen and misused I can dispute fraudulent charges without my bank account being empty. With a debit card the money is automatically withdrawn, and so I would have to fight to get it put back. But I never carry a balance on my credit cards.
If you don't have the discipline to use a credit card as if it was a debit card or cash then you shouldn't be using one. If you use a credit card to take out loans (such as the person in the original story) then you are subject to whatever policies the lender decided to impose. If you don't carry a balance, then you don't get stuck paying these "gotcha" fees.

Debit cards offer identical protection to credit cards. I don't know anyone who has had their identity stolen or their debit cards misused who can comment on whether or not your bank account remains cleared out or not should such an event occur.

True, if you pay off your cards every month these fees and silly interest rates don't apply. I got tired of my credit card companies changing the due date for payments so they can slip in a late fee, I don't have time to play that game so I canceled them.

 

[wilheldp_PE]

Debit cards offer identical protection to credit cards. I don't know anyone who has had their identity stolen or their debit cards misused who can comment on whether or not your bank account remains cleared out or not should such an event occur.

I have 2 anecdotal accounts from different friends about bank accounts remaining empty/overdrawn until the bank has completed the investigation of identity theft.

 

[Capt Worley PE]

Debit cards offer identical protection to credit cards. I don't know anyone who has had their identity stolen or their debit cards misused who can comment on whether or not your bank account remains cleared out or not should such an event occur.

Not quite true. Credit cards, you're responsible for a maximum of$50 if the card is stolen. Debit cards, your responsible for the first $500 dollars after the card is reported stolen. So if the theif empties your account before you report it, you're SOL.

Luckily most debit cards are limited to $300 per day of transactions.

 

[roadwreck]

Debit cards offer identical protection to credit cards. I don't know anyone who has had their identity stolen or their debit cards misused who can comment on whether or not your bank account remains cleared out or not should such an event occur.

They do offer the some protection, but with a debit card your checking account can be emptied out and you have to wait for the bank to put the money back. The rules may have changed and things may have gotten better, but I have known people that have had this happened to and the bank had 90 days to investigate the incident. In the meantime my friend had a checking account balance of zero. He eventually got his money back, but it was a pain. I'd rather not deal with that headache.

 

[snickerd3]

True, if you pay off your cards every month these fees and silly interest rates don't apply. I got tired of my credit card companies changing the due date for payments so they can slip in a late fee, I don't have time to play that game so I canceled them.

I've got a credit card that has an ever changing due date...it is a pain in the butt. It is always something ridiculously short like 22 days after the statement date, but the statement date varies sometimes it is the first of the month, other times it is the 5th or 6th. By the time they print the bill and mail it I basically have to write the check the day i receive it and mail it back in order to make the due date. It costs $15 to pay it online...which I found out the hard way...a lovely fee Bank of America added after they bought the company. I'd change companies, but it one of my longest held cards and my college logo on it.

 

[roadwreck]

I've got a credit card that has an ever changing due date...it is a pain in the butt. It is always something ridiculously short like 22 days after the statement date, but the statement date varies sometimes it is the first of the month, other times it is the 5th or 6th. By the time they print the bill and mail it I basically have to write the check the day i receive it and mail it back in order to make the due date. It costs $15 to pay it online...which I found out the hard way...a lovely fee Bank of America added after they bought the company. I'd change companies, but it one of my longest held cards and my college logo on it.

I'd don't think I'd use that credit card anymore if I were you.

 

[MGX]

I have 2 anecdotal accounts from different friends about bank accounts remaining empty/overdrawn until the bank has completed the investigation of identity theft.

I assumed something along these lines would happen in practice so I only have one debit card attached to one small account for paying bills online or renting cars/airplane tickets. Surely a bank's investigation would take months. Its probably paranoia that keeps me so conservative but its worked thus far.

 

[benbo]

How do you rent a car without a credit card?

First, if you only want to use it for renting a car or something like that, I don't see how you would get into the problems this guy has. However, assuming there's a right to rent a car, you can do it with a debit card. As far as I know, my debit card has a daily withdrawal limit, and I think my bank would let me set it lower if I was worried.

However, if you are still paranoid, and need a card just for renting cars you can ask for a credit card and demand a low limit. If you can't get that then you can get a secured card.

But I still don't know why the world needs to accomodate everyobdy's stupid activities.

 

[Chucktown PE]

That sucks Snick. I had an MBNA American Express through ASCE and was always able to make payments from my checking account with no charge. When BofA bought MBNA they didn't add fees for online payment for my card. My other card doesn't charge a fee for online payments either. Are you paying via check card or an electronic debit using your routing number and account number?

 

[Capt Worley PE]

I've got a credit card that has an ever changing due date...it is a pain in the butt. It is always something ridiculously short like 22 days after the statement date, but the statement date varies sometimes it is the first of the month, other times it is the 5th or 6th.

I can top that story.

I pay my CC bill the day it comes in because one time I recieved it two days before the due date. Usually, they give me a week to mail it in. No lie. A week. I guess that's their way of punishing me for bizzitching about them moving the due date.

BoA. What do you expect?

 

[snickerd3]

That sucks Snick. I had an MBNA American Express through ASCE and was always able to make payments from my checking account with no charge. When BofA bought MBNA they didn't add fees for online payment for my card. My other card doesn't charge a fee for online payments either. Are you paying via check card or an electronic debit using your routing number and account number?

I believe it was a electronic debit. It was a MBNA mastercard, before BOA. I don;t use the card often, it's mostly back up when places don't take discover or when I shop online.

 

[TXengrChickPE]

My debit card is through my credit union. They call me (within 2 hours) if the card is used for anything over $200. And, their written policy is that we are not responsible for ANYTHING that is fraudulently charged to the card.

 

[mudpuppy]

If the dolt hadn't run up a lot of debt, he wouldn't be in this fix.
Gosh, how hard is it to live within your means?

But I still don't know why the world needs to accomodate everyobdy's stupid activities.

I'm not understanding this sentiment that the guy is somehow being irresponsible. How many people out there have a car loan? Granted, having a car loan isn't the best way to buy a car in many cases, but I find it hard to argue it is "stupid," "dolt-ish," or "living outside your means" to have a $12k car loan. Now, let's say you were looking at a used car loan at 7 or 8% but you then got an offer from your credit card company saying you could borrow at 3.99% fixed, guaranteed. In this case I would think it would be stupid NOT to put the car on the credit card!

We don't know what he used the money for or if he was being irresponsible. But that's not the point--the point is the bank is being irresponsible in not honoring its agreements. And I am appalled at how many of you seem to automatically assume the worst in everybody! Why the complete lack of faith in humankind?

 

[wilheldp_PE]

Why the complete lack of faith in humankind?

Just working with what they have shown me thus far.

 

[mudpuppy]

By the way, when my house needed to have the roof replaced, I didn't have a lot of cash because I was young and still starting out. But I did have a decent income. I was looking at getting a home improvement loan at 8% or so, but I got an offer in the mail from my CC company for 4.99% rate until the balance was paid off. So I borrowed $6000 on this offer. Was that a stupid thing to do? The alternatives would be to save up the cash and hope my roof didn't rot out in the mean time, or pay the higher rate for a home improvement loan.

 

[mudpuppy]

Just working with what they have shown me thus far.

LOL, nice!