Credit Cards

[Carly_Roach]

I would be careful using a debit card online. If your number is swiped, your checking/savings accounts are wiped clean and you have no recourse and will probably never get that money back.

When you use a credit card, you at least have some protection.

And to answer the OP, I have a Visa and my DH has a MC.

We have a separate checking account that we use for online purchases only and use the debit card from that account. There's never any more than $100.00 there unless we're planning a large internet purchase. If we want to buy a big item from the internet, I transfer the amount we plan to spend, wait a day, then buy the product. When the balance gets low, I simply replenish by transferring more money in.

You're wrong about no recourse. Check with your banking institution, but at PNC if a charge is made that we didn't approve and we report the theft right away, they reimburse us for the amount. Fortunately we haven't had to deal with this personally, but I know people who have and they were very happy with how it turned out.

We've lived on cash for well over a year now and I'm generally loving it. It was difficult at first, but I'm going to keep doing this for as long as possible. We really, really think about what we spend our money on now, weighing whether or not we really need that CD or new phone if it means we'll have less in the account until payday, as opposed to just putting it on the card and forgetting about it.

 

[Hoodie]

We have a separate checking account that we use for online purchases only and use the debit card from that account. There's never any more than $100.00 there unless we're planning a large internet purchase. If we want to buy a big item from the internet, I transfer the amount we plan to spend, wait a day, then buy the product. When the balance gets low, I simply replenish by transferring more money in.

You're wrong about no recourse. Check with your banking institution, but at PNC if a charge is made that we didn't approve and we report the theft right away, they reimburse us for the amount. Fortunately we haven't had to deal with this personally, but I know people who have and they were very happy with how it turned out.

We've lived on cash for well over a year now and I'm generally loving it. It was difficult at first, but I'm going to keep doing this for as long as possible. We really, really think about what we spend our money on now, weighing whether or not we really need that CD or new phone if it means we'll have less in the account until payday, as opposed to just putting it on the card and forgetting about it.

That actually won't protect you unless the accounts are at two different banks. If the accounts are at the same bank, then if one account is overdrawn, the bank can take the money from any other account you are on (this includes accounts where you are the co-holder, not just the primary).

 

[Carly_Roach]

That actually won't protect you unless the accounts are at two different banks. If the accounts are at the same bank, then if one account is overdrawn, the bank can take the money from any other account you are on (this includes accounts where you are the co-holder, not just the primary).

Uh huh. Ok. Whatever you say.

As for me, I think I'll stick with what my personal banker has reassured me of and what friends in the industry have said and live happy. Living on cash is making me very happy. My internet purchases are way, waay down from what they used to be and I'm really not all that worried about someone stealing my $25.00 from that account.

My bank has assured me that someone wiping out my accounts because they stole the number on the debit card is a highly unlikely situation. Especially if I've called them right away if/when it happens (like the very next day).

 

[MarkBarbieri]

We've got AMEX, Discover, Visa, and Mastercards. All are set to auto-draft the full amount each month, so we never carry a balance. I find it more convenient than cash and safer than a debit card.

 

[chisnpeke]

I have a few but I only use my Visa. It's a Royal Caribbean Visa and I swear I'm going to one day hit that 7 day free cruise bonus point limit.

I use this one too!

I also use my Disney Visa sometimes, not as often now that our trip is over.

Also have a Discover and Mastercard, both of which are rarely used.

 

[Hoodie]

Uh huh. Ok. Whatever you say.

As for me, I think I'll stick with what my personal banker has reassured me of and what friends in the industry have said and live happy. Living on cash is making me very happy. My internet purchases are way, waay down from what they used to be and I'm really not all that worried about someone stealing my $25.00 from that account.

My bank has assured me that someone wiping out my accounts because they stole the number on the debit card is a highly unlikely situation. Especially if I've called them right away if/when it happens (like the very next day).

It's true. My husband is in banking and taking the overdraft from another account is common practice. Really sucks when someone who has a joint account comes in and that account is cleaned out because the other person overdrafted the non-joint account (he's had that happen to a couple of clients. Nothing they can do about it. One guy's entire paycheck ended up in his sister's account because she had overdrafted and he had deposited it in the joint. Too bad. Not the bank's problem).

As for the timing - one person I know had everything in all her accounts wiped out in 2 hours. It was pretty impressive actually. The bank didn't even have time to put a stop on anything. It's a low risk but it is a risk. To truly mitigate the risk, just open your debit account at a separate bank from your savings and regular checking.

 

[AshleyW]

It's true. My husband is in banking and taking the overdraft from another account is common practice. Really sucks when someone who has a joint account comes in and that account is cleaned out because the other person overdrafted the non-joint account (he's had that happen to a couple of clients. Nothing they can do about it. One guy's entire paycheck ended up in his sister's account because she had overdrafted and he had deposited it in the joint. Too bad. Not the bank's problem).

As for the timing - one person I know had everything in all her accounts wiped out in 2 hours. It was pretty impressive actually. The bank didn't even have time to put a stop on anything. It's a low risk but it is a risk. To truly mitigate the risk, just open your debit account at a separate bank from your savings and regular checking.

At a lot of banks, you have to sign up for overdraft protection for this to actually happen. I know that's how it is at Wells Fargo. I have one checking account linked to a credit card account for overdraft protection, but I didn't link my other checking and savings account together.

 

[mvazul]

I would be careful using a debit card online. If your number is swiped, your checking/savings accounts are wiped clean and you have no recourse and will probably never get that money back.

When you use a credit card, you at least have some protection.

And to answer the OP, I have a Visa and my DH has a MC.

That's actually a bad thing. Using no credit is almost as worst as using too much. Its all about using credit responsibly, and that goes for all forms of credit, revolving, fixed, etc.

Well, I have had my number swiped - twice. Once was with my credit card and one was with my debit card. There is a risk no matter how you look at it. Funny thing is, my credit card gave me a harder time than my bank. It took months for the credit card to resolve the issue and I immediately closed my account after, because I didn't like how they handled it. My bank took two days to get everything resolved. Of course, the bank manager is my aunt, so that may have helped! I will stick with no credit cards and just use my debit card or check book. And we have credit - we own our home and have a vehicle we pay for. We're doing okay.

 

[MoonFaerie]

I would be careful using a debit card online. If your number is swiped, your checking/savings accounts are wiped clean and you have no recourse and will probably never get that money back.

When you use a credit card, you at least have some protection.

And to answer the OP, I have a Visa and my DH has a MC.

That's not at all true, at least in my experience. When dh's debit card number, that he only uses for getting gas, was stolen, we had the money back within 24 hours.

When I had to dispute a charge (non-receipt of an online purchase), they money was again back in my account within 24 hours.

 

[2binak]

Well, I have had my number swiped - twice. Once was with my credit card and one was with my debit card. There is a risk no matter how you look at it. Funny thing is, my credit card gave me a harder time than my bank. It took months for the credit card to resolve the issue and I immediately closed my account after, because I didn't like how they handled it. My bank took two days to get everything resolved. Of course, the bank manager is my aunt, so that may have helped! I will stick with no credit cards and just use my debit card or check book. And we have credit - we own our home and have a vehicle we pay for. We're doing okay.

But - if your bank account # is stolen and your money is taken, you are out that money until the bank can resolve it. They're not going to front you cash to get your bills paid until they can figure out what happened. If your cc # is stolen, you're not out any money. You're out the hassle of dealing with the cc company, but you're not out any actual money.

I attended a seminar at work with Frank Abagnale, the man the movie "Catch Me If You Can" is based on, and that was his most stressed piece of advice. Use cash or a cc and not a debit card for ANY purchase to keep your bank account safe.

 

[Hoodie]

Well, I have had my number swiped - twice. Once was with my credit card and one was with my debit card. There is a risk no matter how you look at it. Funny thing is, my credit card gave me a harder time than my bank. It took months for the credit card to resolve the issue and I immediately closed my account after, because I didn't like how they handled it. My bank took two days to get everything resolved. Of course, the bank manager is my aunt, so that may have helped! I will stick with no credit cards and just use my debit card or check book. And we have credit - we own our home and have a vehicle we pay for. We're doing okay.

I do think the bank/cc company have a lot to do with it. When my cc number was stolen, they rejected the charges, called me, and everything was resolved on that one call. I filled out some paperwork they sent me and that was the end of it. When my friend had her debit card number stolen (and subsequently her entire checking and savings and $15k in overdraft) the bank wouldn't even start to address it until she filed a police report and the police investigated. Since she had a huge overdraft the bank put her paychecks against the overdraft. She was basically without any money for 6 weeks.

It may have been the amount as well. Her loss was well over $25k (including the overdraft) so the bank wasn't about to take that hit without confirming it was fraud.

 

[mvazul]

I do think the bank/cc company have a lot to do with it. When my cc number was stolen, they rejected the charges, called me, and everything was resolved on that one call. I filled out some paperwork they sent me and that was the end of it. When my friend had her debit card number stolen (and subsequently her entire checking and savings and $15k in overdraft) the bank wouldn't even start to address it until she filed a police report and the police investigated. Since she had a huge overdraft the bank put her paychecks against the overdraft. She was basically without any money for 6 weeks.

It may have been the amount as well. Her loss was well over $25k (including the overdraft) so the bank wasn't about to take that hit without confirming it was fraud.

Yes, I think that does play a huge role. The amount stolen on my credit card was one charge for just over $200. My debit had about 7 charges at $30-$40 each. They all hit so fast. The bank was great. The credit card company, not so much.

 

[jlewisinsyr]

I will stick with no credit cards and just use my debit card or check book. And we have credit - we own our home and have a vehicle we pay for. We're doing okay.

You do realize both your vehicle and home are different types of credit then a credit card, right? Your credit score is a calculated risk based on all of the types of credit you use. Not using one type of credit at all (this is very true for credit cards) can actually cause your credit score to go down.

 

[mvazul]

You do realize both your vehicle and home are different types of credit then a credit card, right? Your credit score is a calculated risk based on all of the types of credit you use. Not using one type of credit at all (this is very true for credit cards) can actually cause your credit score to go down.

Yes, I do realize that. And as I stated, my aunt is the manager of our bank. She has been in the banking industry for 30 years. She helps to guide us through if we need help. Plus, my husband is pretty good at taking care of our finances, credit, etc. Seriously...we're okay.

 

[jlewisinsyr]

Yes, I do realize that. And as I stated, my aunt is the manager of our bank. She has been in the banking industry for 30 years. She helps to guide us through if we need help. Plus, my husband is pretty good at taking care of our finances, credit, etc. Seriously...we're okay.

What happens when she's not there, or there is a better rate that you "could" get through a different vendor/company, but cannot because your credit score is lower then it could be.

I'm all for using credit wisely, but the key words are USE and WISELY.

Also, my post wasn't just directed at you (although it may come across that way), its also general knowledge. Many people just think if they stop using credit cards, their credit scores will magically go up, when that is not always true. Using credit cards, and keeping them in good standing is a key component in ones overall credit score. Cancelling credit cards can actually do more harm then good as does not using them at all.

 

[Planogirl]

What happens when she's not there, or there is a better rate that you "could" get through a different vendor/company, but cannot because your credit score is lower then it could be.

I'm all for using credit wisely, but the key words are USE and WISELY.

Also, my post wasn't just directed at you (although it may come across that way), its also general knowledge. Many people just think if they stop using credit cards, their credit scores will magically go up, when that is not always true. Using credit cards, and keeping them in good standing is a key component in ones overall credit score. Cancelling credit cards can actually do more harm then good as does not using them at all.

People also believe that paying everything off will increase their credit score. Not true.

 

[ICF]

People also believe that paying everything off will increase their credit score. Not true.

It doesnt seem to hurt, though.

I've paid all cards on time w/no interest for my 15+ years as an "adult".

My credit score last I checked a year or so ago was over 800.

 

[DarthKTrava]

No longer has any credit cards.

 

[eliza61]

My bad. We don't have Discover over here and AMEX is rare.



Rich::

On that note, Rich. Let me ask you, I'm heading over to London and Paris early summer, will my mastercard be more accepted than American Express?

Eliza

 

[dcentity2000]

On that note, Rich. Let me ask you, I'm heading over to London and Paris early summer, will my mastercard be more accepted than American Express?

Eliza

Definitely. VISA and Mastercard are pretty much accepted anywhere and everywhere



Rich::