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[CrankyJay]

WTF? I have enough money in my account to use my own fucking money, why would I want to use a Credit Card? I seriously don't get it? I cant stand it when I go to rent a car and they are like uhhhh credit card??

uhhhh I can afford it with my own money..

They want a card in case you crash their car or return it with no fuel. It's for their protection.

 

[JetBlackPanda]

They want a card in case you crash their car or return it with no fuel. It's for their protection.

my Debit card has a visa sign on it, why cant they take a hold on my bank? why do I HAVE to barrow money then pay it back??

 

[R2D4]

WTF? I have enough money in my account to use my own fucking money, why would I want to use a Credit Card? I seriously don't get it? I cant stand it when I go to rent a car and they are like uhhhh credit card??

uhhhh I can afford it with my own money..

You really don't understand why a credit card is required in transactions that involve you renting something that costs thousands of dollars to fix if you damage it?

 

[krzy123]

Seriously.

I've managed to stay out of debt mainly because I've never had/needed a credit card.
If these debit card limitations do happen, I may have to jump in though.

Another thing I haven't seen come up is that there is almost always an annual fee for credit cards.
Are a handful of gift certificates worth $100+ in annual fees a year?

this is false. i've never paid any annual fees.

 

[CrankyJay]

my Debit card has a visa sign on it, why cant they take a hold on my bank? why do I HAVE to barrow money then pay it back??

They can't take money from an empty account. It's a risk aversion tactic.

 

[ToxicAdam]

WTF? I have enough money in my account to use my own fucking money, why would I want to use a Credit Card? I seriously don't get it? I cant fucking stand when I go to rent a card and they are like uhhhh credit card??

uhhhh I can afford it with my own money..

It's simple math. They know that 3% of all CC users fall 60 days behind on their card at some point, which gives them the right to charge extra fees and higher APR's.

You can't do that to a debit card owner. So, they want to funnel as many transactions to a CC where they can extract more money from you if you slip up.

 

[Fernando Rocker]

Debit for life.

Sorry... but if I want to spend money, I will only spend the money I have in that moment. I have zero debt... everything I have in my house is mine. And my bank (HSBC) offers me fraud protection too.

Heck, I even paid my house in just one payment.

Learn to save, Credit-GAF.

 

[Future]

WTF? I have enough money in my account to use my own fucking money, why would I want to use a Credit Card? I seriously don't get it? I cant stand it when I go to rent a car and they are like uhhhh credit card??

uhhhh I can afford it with my own money..

I've had a credit card for 10 years. Just having it that long has increased it's limit, and increased my credit score. With my amazon card, I pay everything on it and get 50 bucks back every couple of months through rewards. I pay no interest, since the balance is paid every month. I pay no fees.

With the higher score, my insurance is lower, interest rates are lower in any loan, etc. Why the hell would anyone not want this. Even if you have the funds, if your debit card doesn't have rewards use a damn rewards card instead. Fraud protection is just a bonus to me

 

[Kuran]

Holy fuck. Why do people equate credit card with debt? If you have 2k in your bank don't spend more than 2k on your credit card. Simple.

You seem to be confused with the POINT of a credit card. And the ways stores like Apple make getting expensive electronics easy by allowing people to get an easy credit card in-store is exactly the problem. Most people are not responsible enough to use credit cards, isn't this obvious? Hello economy!

 

[out0v0rder]

People, seriously. Stop fucking using debit cards.

why

 

[JetBlackPanda]

You really don't understand why a credit card is required in transactions that involve you renting something that costs thousands of dollars to fix if you damage it?

They can't take money from an empty account. It's a risk aversion tactic.

so my CC that has a 3k limit is fine? I total a car but its ok I have a Credit Card..

 

[CrankyJay]

why

Read the thread.

 

[lunarworks]

Here in Canada we try and avoid spending money we don't have, that's why I don't use a credit card. Only cash or Debit.

our Debit system makes sense, but I can see how these billionaires would be getting butt hurt about the millions of dollars they would be loosing. Too bad I don't feel any sympathy to those who eat breakfast off of platinum plates.

Our debit system works very, very well under the existing Interac alliance, but now Visa has swooped in and is trying to fragment the debit system. I don't know why they were allowed to do that. They bring nothing to the table, and they're just gonna cause headaches for the consumer.


So, anyway, I'm guessing that in the US debit transactions are not 100% protected against fraud?

 

[Morn]

This is only Chase. If they end up doing this, I'll just move to a different bank.

 

[Kuran]

I've had a credit card for 10 years. Just having it that long has increased it's limit, and increased my credit score. With my amazon card, I pay everything on it and get 50 bucks back every couple of months through rewards. I pay no interest, since the balance is paid every month. I pay no fees.

With the higher score, my insurance is lower, interest rates are lower in any loan, etc. Why the hell would anyone not want this. Even if you have the funds, if your debit card doesn't have rewards use a damn rewards card instead. Fraud protection is just a bonus to me

This is what I meant with rewards, it's a fucked up system to reward people to use credit, but I guess the banks own this country.

 

[JetBlackPanda]

This is what I meant with rewards, it's a fucked up system to reward people to use credit, but I guess the banks own this country.

exactly.. sure the rewards are great but why the fuck is it just supposed to be something we do? well I have the money but I should use the VISA then pay the VISA with my money so I get points.

 

[Stinkles]

First, they offer less protection than a credit card if the card is stolen or the number is lifted somehow.

Second, say you buy gas on a debit card and you only need $30 worth. Because it's debit they put a hold of $70 on your card. If you have less than $70 on your card you can get hit with an overdraft fee. But now that the federal gov't passed that overdraft protection law, gas stations can outright deny your debit card if you don't have enough to satisfy your hold. Hell, even if you did have enough money and needed to use that other $40 later that day, you can't because it's on hold.

You don't build credit with debit cards.

You might as well just carry cash with you, or use a credit card but don't spend more than you have in your account.

I have immaculate credit. I will continue to use debit cards for all cash purchases, while you, you dirty poor, continue to use semen-crusted paper money to buy your malt liquor and chewing tobacco. Now get out of my way before I tell my man to eject you.

 

[TylerD]

Debit for life.

Sorry... but if I want to spend money, I will only spend the money I have in that moment. I have zero debt... everything I have in my house is mine. And my bank (HSBC) offers me fraud protection too.

Heck, I even paid my house in just one payment.

Learn to save, Credit-GAF.

Me too but I pay for stuff with the money I have by using my credit card...

 

[FlashFlooder]

I've been using credit cards for 7 years now, and have had LOTS of them. I currently use about 3-4 different ones to maximize my rewards. I have never paid a single dime to the financial institutions that offered me these cards.

Assuming your credit is decent enough to get a credit card, you really should be getting one. If nothing else, the rewards are worth it. There are tons of other good reasons to get into the credit game, but I'll spare you guys.

Credit Cards don't ruin people financially, people do.

I have immaculate credit.

For the record, immaculate credit != good credit.

 

[Fernando Rocker]

And what's that shit talk about paying gas with debit?

I can go to any Shell, Exxon, etc. gas station, and tell the cashier "I want $20 of gas"... the employee just slide the card, and done. $20 are paid from my bank account. No money is hold.

If my bank account doesn't have the $20, the transaction is not done. That simple.

 

[JetBlackPanda]

this entire thing is still bizarre to me, in a world where everything is going digital they want to impose a fee for using a paperless method to pay for things.

 

[Stat Flow]

This is what I meant with rewards, it's a fucked up system to reward people to use credit, but I guess the banks own this country.

They reward them because they're a rarity. Rewards come to the people who are the exception. Not to mention it's simply a ploy that they use to get people that don't know to research on how to use a credit card...to get their credit card.

Honestly, the rewards are less important than the credit that you build though.

 

[Axion22]

Okay. Don't complain then if your account is compromised and you have access to no money while the bank investigates it and hopefully replaces the funds. What do you do in the meantime if you need money during this timeframe?

Your fears are unfounded. Any time my account has been compromised, my card was immediately cancelled, a new one ordered, and the money was back the account the next day.

 

[dextran]

It's the same concept as 401k matching - don't throw away free money, i.e. the employer match. Credit card rewards are like 10% off coupons.

 

[tfur]

Pretty sure that paying off your credit card in full negatively affects your credit score. It has something to do with your "credit utilization." By holding zero balance, your ratio lowers your score.

 

[JetBlackPanda]

And what's that shit talk about paying gas with debit?

I can go to any Shell, Exxon, etc. gas station, and tell the cashier "I want $20 of gas"... the employee just slide the card, and done. $20 are paid from my bank account. No money is hold.

If my bank doesn't have the $20, the transaction is not done. That simple.

your doing it wrong! the right way is to barrow money from American Express, then go home and pay off your American Express with your money.

lol wtf

 

[Fernando Rocker]

your doing it wrong! the right way is to barrow money from American Express, then go home and pay off your American Express with your money.

lol wtf

hahaha nice!

 

[Jakeh111]

What if my CC limit isnt as high as the purchase I want to make?!

 

[CrankyJay]

Your fears are unfounded. Any time my account has been compromised, my card was immediately cancelled, a new one ordered, and the money was back the account the next day.

What if you needed money right then!? And not all banks handle it the same way.

 

[CrankyJay]

Pretty sure that paying off your credit card in full negatively affects your credit score. It has something to do with your "credit utilization." By holding zero balance, your ratio lowers your score.

No it doesn't. If anything, your balance to limit ratio looks better.

 

[ClosingADoor]

What if you needed money right then!? And not all banks handle it the same way.

That's why you always have $50 in your wallet. I'll never understand people walking around with absolutely no cash on them.

 

[entremet]

Actually if your debit card is stolen and you're with a reputable banking institution your fine just like with your credit card. Hell big banks like Bank of America have even run large tv ads that have stated just as such. Most of the smaller banks act the same way now to compete. I don't know where people have gotten this idea if your debit card is stolen that cash is just lost.

Bank of America Debit Security
Wells Fargo Debit Security
Chase Debit Security

Seriously the amount of fucking dumb information being passed around in this thread is SOOO LOLable. It's GAF after all though so why should I expect anything else?

It's laughable. So much misinformation regarding debit cards. I just prefer using debit cards over credit cards.

 

[Future]

Pretty sure that paying off your credit card in full negatively affects your credit score. It has something to do with your "credit utilization." By holding zero balance, your ratio lowers your score.

This is true. If you have no other loans, maintaining a small balance is better than zero balance for sure. But I'd rather have zero balance than none of the advantages that come from having and using a card

What is funny is not only should people have one card, they should have multiple cards so their credit potential is higher. But that will just blow minds

 

[Stat Flow]

What if my CC limit isnt as high as the purchase I want to make?!

Use your credit card for the purchase and the remainder of it with your cash...

No one is saying cash is evil. Just that using CC has major advantages to Debit cards, especially with big purchases.

Oh, and when you get home, call the company and ask them for a limit raise. Oh, and if you have great credit/history, they'll do it with no hesitation.

It's always best to walk around with 1) Cash for every day life in the wallet ($10-$50 or what have you), 2) Credit card, and 3) Mad Money for emergencies (losing wallet for example).

 

[tfur]

No it doesn't. If anything, your balance to limit ratio looks better.

Look up credit utilization and FICO credit score. It does.

 

[jmdajr]

Debit for life.

Sorry... but if I want to spend money, I will only spend the money I have in that moment. I have zero debt... everything I have in my house is mine. And my bank (HSBC) offers me fraud protection too.

Heck, I even paid my house in just one payment.

Learn to save, Credit-GAF.

that kicks ass bro. living the fucking dream!

 

[Axion22]

What if you needed money right then!? And not all banks handle it the same way.

They're called checking accounts. I write a check. Your fears: unfounded.

 

[CrankyJay]

They're called checking accounts. I write a check. Your fears: unfounded.

Your logic: Retarded

 

[Prince of Space]

Switching to credit cards only for every purchase you make is the quickest way to fuck up your credit utilization ratio, which WILL NOT help you build credit.

 

[CrankyJay]

Look up credit utilization and FICO credit score. It does.

Your score does NOT go down for paying it off every month. It just won't go up.

 

[Axion22]

Your logic: Retarded

I suppose when you run out of points, you have to resort to that. Have a nice day.

 

[Flo_Evans]

Switching to credit cards only for every purchase you make is the quickest way to fuck up your credit utilization ratio, which WILL NOT help you build credit.

Only if you have a super low credit limit.

 

[Ceres]

I just got $150 in gift cards (they were 10% off) from my card reward points. That was from about 3 months of us.

Interest I've paid on my card: 0

 

[entremet]

I also don't get the obsession with the FICO score. Net worth is much better barometer of fiscal health. Your FICO is just a measure on how well you pay off debt. Debt should be avoided in most matters--outside of student loans and home loans, which are usually an investment.

One of the reason we got in this economic mess was because idiot bankers were only looking at FICO scores as barometer of fiscal stability, when income and savings are much more important. When a meter maid gets qualified for 400k loan because she has a pristine FICO score, there's a problem.

If you have 20 percent down and no deliquencies, no bank will turn you down for a mortgage. Especially given home many unqualified home loan applicants got loans with bad credit and no money down during the real estate bubble.

 

[CrankyJay]

Another benefit to some credit cards: They'll add 1 year to manufacturer's warranty for free.

https://www212.americanexpress.com/...e_allccsg_shareddetails&type=intbenefitdetail

 

[tfur]

Your score does NOT go down for paying it off every month. It just won't go up.

You are wrong. Please go look up what I told you to. Unless the FICO information has changed, the ratio negatively affects your score.

 

[Kuran]

I just got $150 in gift cards (they were 10% off) from my card reward points. That was from about 3 months of us.

Interest I've paid on my card: 0

Gift cards for what exactly?

 

[CrankyJay]

You are wrong. Please go look up what I told you to. Unless the FICO information has changed, the ratio negatively affects your score.

The impact is negligible. You're not going to have a sub 700 credit score for paying off debt on time.

 

[Flo_Evans]

I also don't get the obsession with the FICO score. Net worth is much better barometer of fiscal health. You're FICO is just a measure on how well you pay off debt. Debt should be avoided in most matters--outside of student loans and home loans, which are usually an investment.

If you have 20 percent down and no deliquencies, no bank will turn you down for a mortgage. Especially given home many unqualified home loan applicants got loans with bad credit and no money down during the real estate bubble.

Sure you can get a loan, but not the best rates. 1% of interest rate over the course of a $100,000 home loan can be as much as $20k more in interest.

 

[Fernando Rocker]

that kicks ass bro. living the fucking dream!

It's a very small house, but still, better than paying rent (or a mortgage). And it wasn't easy. I had to save for years.

But now I'm getting married (in November), and we are not going to pay rent o a mortgage, and we can start saving together and buy a bigger house in the future.

And we will have two houses by then.