Noodle To Nathan - And Why I Love My Bank

[nickapos]

It is possible to use credit cards and keep track of the charging amount and pay it off 100% monthly, and never have a fee. They are essential for people who are certain of deposits coming at a later date, but needing to purchase items now...and the buyer protection we have in the USA with credit cards is wonderful and important. It's also important to have revolving credit accounts to establish your credit history. Last time I checked my FICO it was 826.

 

You are right, there are different strategies, some of them are better than mine under certain conditions. You can use the credit card strategy without any problems if and only if your original suggestion holds (that you will have a deposit on a specific date). In the current economic crisis (unemployment, salary reductions etc) a lot people in areas with economic problems that used this strategy are struggling to keep up.

 

So I like to play it safe.

[danahn17]

Cool story Amber!

 

I don't know how often Nathan reads these forums anymore, but he may enjoy it if you sent him a little email with the story too

[SamCapote]

It is possible to use credit cards and keep track of the charging amount and pay it off 100% monthly, and never have a fee. They are essential for people who are certain of deposits coming at a later date, but needing to purchase items now...and the buyer protection we have in the USA with credit cards is wonderful and important. It's also important to have revolving credit accounts to establish your credit history. Last time I checked my FICO it was 826.

 

You are right, there are different strategies, some of them are better than mine under certain conditions. You can use the credit card strategy without any problems if and only if your original suggestion holds (that you will have a deposit on a specific date). In the current economic crisis (unemployment, salary reductions etc) a lot people in areas with economic problems that used this strategy are struggling to keep up.

 

So I like to play it safe.

 

Agree with the "if and only if" unless you also have an additional "buffer" that provides immunity from the economic madness which is just starting.

[Messmer]

Nickapos:

I'm the opposite of you in one respect. I don't like or use debit cards. In the States, if you report a stolen credit card you are generally only liable for $50 worth of fraudulent purchases (at worst). A debit card has no such protection, and your entire bank account can be wiped out in seconds because the money is coming straight out of it. I *do* try to keep purchases on credit cards down as much as possible, and also try to pay the charges off in full every month, so as not to get hit with interest and penalties charges.

If it's a very large purchase (major appliance or enough yarn for knitting a sweater) or a non-usual purchase (such as pen/ink orders) I discuss it with my husband before making it -- as does he when he's doing stuff like ordering electronics parts. There have been times where one or the other one of us has said "Don't use X card until the bill gets paid...."

And if it's going to be a large amount (such as a dentist's bill) I'd rather put it on plastic so I'm not carrying large wads of cash around with me -- which I *have* had to do on occasion. Again, it's the level of protection I have with a credit card.

I got really irritated when signing up for PayPal (had to, in order to get the batch of Pharmicist's special colors of IG ink), because PayPal *assumed* that I would be adding my bank account information and it was hard to find the opt-out place (and I said as much -- repeatedly -- when I filled out their new member survey and gave them probably lower ratings than they would have liked....). The answer of course was "Um,... NO! Why the (bleep) do you think I'm using a credit card (and one that had been sort of designated as the "online purchases card" at that)...."

Ruth Morrisson aka inkstainedruth

Ruth, I agree with you, but have decided on a different approach. That is why I have two bank accounts, one connected with my debit card and a very small amount of money, and the other with the larger amount (when I have a larger amount ). When I want to purchase anything, I transfer money from the one to the other account. Of course I have easy access to the cashier but I have also an internet banking.

So with this way, I do not pay any interest, I run a very low risk of my money been stolen etc and I can get money out of an ATM 24h/day with a simple transfer.

I have linked my paypal with my debit card, so the same apply with any purchases done through paypal.

 

It is similar in Canada, much better protection for Credit card then Debit. I mean we have a legal liability of 50... But my credit card contract state I have nothing to pay in case of fraud.

 

Also, in Quebec, we have a special legal protection. Globally what it say is for sale done remotely (like online or by mail...) if a waranty or the good is not received, you can get a refund. The law define provision, condition and stuff like that... But the important point is if the sellers refuse, you can have your credit card compagny do a charge back. They have to refund you and deal with the rest. If the guy is in russia, india, usa or a small island in the pacific. It is not my problem at the end if I send the proper paper and followed the procedure. I'm covered. Mean, global protection!

 

Check are also more protected then in the USA. If somebody use a false check. The bank who accepted it is responsible. I just need to prove I used due diligence. That not too difficult.