Vent: Denied credit card at the Gap despite perfect credit record!

[cobbler]

It kind of sucks if they think you have too much credit. One that drives me crazy is that I have an Express card and they recently upgraded me to Platinum, well after calling every few months to lower my credit limit they so love to raise I finally put a freeze on the limit so that it can't be raised unless I call in and have it done.

But do you think I could get Disney, the charter card not the Visa, to raise my limit a $100?? Heck no. And I have never carried a balance on either card or been late.

 

[Bethshaya]

Originally posted by Laz
Is this a negative factor against my account, or a good one?

I will cool off if the credit companies are trying to protect me.

Don't worry about the spelling, look at mine!

Yes, it is for YOUR protection. Much like how they call if there is unusual activity on your card, they also protect people with good credit from applying for instant credit in case your wallet is stolen or someone gets ahold of your SSN/personal ID numbers.

 

[Bethshaya]

Originally posted by RUDisney
Did you know that it isn't your problem if someone steals your card? It's the bank's problem and they have to recredit your stolen money.

I personally don't like debit cards either. My reason is that I can buy 25 extra days to make my cash work for me with my credit card and get miles for using it.

Useless trivia time... Did you know that merchants are migrating to what is called ARC? (I forget what the acronym means.) That is the way that Walmart gets your money from you when you write a check. The merchant scans your check so they can change it to an electronic transaction. (an ACH) They never clear your check and it shows up on your statement with the merchant's name, your check number and the amount. Merchants are doing this because they get immediate availability of the funds (next day) and they also get their returned items faster. It is cheaper for them than processing paper, too.

Anyway, the real problem I have with debit or smart cards is that my kids' school is going to be issuing them to all of the students. Parents will put money on them so their children can buy lunch. While I have no problem with an adult being responsible or irresponsible with their credit and debit cards, I take issue with entrusting them to anyone under 12... maybe 14. I'd much prefer to have the kids take in a ticket for their lunch than to allow them to take a card with money on it so they can buy lunch for themselves and their friends.... let alone the risk of losing the card or having it stolen... since it is like cash.

My son has a Smart Card for lunch and the school is really good about it.

For the younger grades (and high schoolers if you request it) you can put limits on it as a parent.

For instance, I can put the stipulation on it that he is not allowed to buy more than one snack without buying a full meal. (this ensures his diet isnt potatoe chips and ice cream).

He must buy a milk, no soda allowed on his card. Also, no more than one complete meal can be bought on his card in one day. He can buy one extra entree if he has bought a full meal for that day.

So there are lots of options and restrictions so that he doesnt go buying all his friends lunch and that he doesnt only buy snacks for lunch.

Also, the classroom teacher collects the cards after lunch from the kids and distributes them again the next day before lunch. So no one loses it.

 

[Laz]

An update with no real answers

I just spent an hour on the phone with a number of representitves from the credit reporting companies. Every one of them has no idea why I was denied credit. My credit is in excellent shape, I have no fraud alert indicated, and not one problem or comment has EVER appeared on my record. They have recorded the inquiry by The Gap, and it went through clean.

SO WHAT'S THE DEAL????

 

[bellacam]

LAZ, I spent the last 4 years working as a credit analyst for a major credit card co. My job was to approve or decline applications for both mail in and instant credit offers. Anything from not being able to verify your current address or security info listed on your application to a blemish or question on you credit bureau that can cause you to be denied. Also, of you refused your ssn or dob on the application, new Patriot Act regulations require the credit company to send you a request for that info in writting, causing and instant denial. Either was, the Gap financing company is required to provide you with a letter of explanation for the reason you were denied within 30 days. It will give you the exact reason for denial as well as a # to call for reconsideration or to clarify any discrepancies. The credit bureaus themselves will not have this info. Hope this helps!

 

[Laz]

Thanks for the info, but everything you mentioned was checked and double checked with no discrepencies. If the credit companies (which is where The Gap finacing get their info) find no problems, why would The Gap go out on their own and deny me credit?

As far a the 30 days, that, IMHO, is not quick enough. What if it was an identity theft problem. Within that 30 days, some jerk could ruin your financial life. The letter should be immediately overnighted to you.

 

[Shugardrawers]

Originally posted by RUDisney
For those of you who have had issues with writing checks, why don't you use a debit card, or a Visa check-card, etc.?

The online system knows if you have money or not and it is a lot faster than writing a check. The only issue I can see is if you're trying to draw against non-collected funds that would have cleared by the time the physical check hit the bank.

The main reason I prefer to write a check rather than use my debit card is that I have a record of the purchase right there in my checkbook with the duplicate. Otherwise, I tend to forget to write them down and much later learn that I've overspent and don't have the money to get gas or groceries. Thankfully, I haven't bounced anything but there have been a couple times it was just a matter of sheer luck. I'd love it if the cashier gave you a minute to write down your purchase in your checkbook rather than shove your receipt at you and kick you out the door while ringin up the next customer. That's one of my MAJOR pet peeves. I'm getting better about taking my time at the checkstand to write things down so if I'm in front of you please give me a minute! My credit depends on it!

A little more on topic: I recently learned that my credit report says I have purchased and paid off a house in CT!!! I've never even been in CT but it sure did wonders for my score! This is one mistake I'm reluctant to have removed!

 

[Pin Wizard]

Originally posted by RUDisney
Useless trivia time... Did you know that merchants are migrating to what is called ARC? (I forget what the acronym means.) That is the way that Walmart gets your money from you when you write a check. The merchant scans your check so they can change it to an electronic transaction. (an ACH) They never clear your check and it shows up on your statement with the merchant's name, your check number and the amount. Merchants are doing this because they get immediate availability of the funds (next day) and they also get their returned items faster. It is cheaper for them than processing paper, too.

That's not useless! I once took the van in for work at the dealer. I wrote them a check. Maybe they scanned it or did something else. But before I left she had given me the check back all encoded on the bottom like a normal cashed check. She said the money was withdrawn from my account and in theirs. I told her it would have been faster to just use my debit card!

 

[Pooh Girl 71]

They do the same thing at Old Navy. Waste of paper to even write a check.

I use my debit card for everything. It makes my life a lot easier. Unfortunately, not everyone accepts debit/credit cards.

 

[WebmasterAlex]

I can never figure out why they always ask me "credit or debit", it comes out of the same account, why do I care?

 

[cobbler]

Originally posted by WebmasterAlex
I can never figure out why they always ask me "credit or debit", it comes out of the same account, why do I care?

A lot of banks charge you a fee now if you use it as a debit card, say 25-50 cents per use. My SIL works for a bank and they have to pay a 3rd party for every transaction so they passed the buck along to us. They don't tell you this though, instead they tell you that you have the protection of using it as a credit card like the theft things and all that.

 

[Nancy]

My bank car is also a rewards card...if i use it as debit (with the pin) I don't earn rewards...I only earn them if I use it as credit. One of my banks charges a small fee for POS debit purchases...my main one doesn't.

The store I work for allows cash back over the amount of purchase if you use a debit. we ask how they are using it so we can then ask if they want the exact amount or cash back. Starting Wednesday, the registers will tell us how a customer is paying so we will no longer have to ask...we'll just ask the exact amount question when we see debit on the screen.

 

[Missy1961]

Originally posted by WebmasterAlex
I can never figure out why they always ask me "credit or debit", it comes out of the same account, why do I care?

Because if it's credit, you don't need a PIN. If it's debit, you do.

And it's kind of a pet peeve of mine when people say "PIN" number. The P-I-N stands for Personal Identification Number.

 

[Shugardrawers]

Originally posted by Missy1961
Because if it's credit, you don't need a PIN. If it's debit, you do.

And it's kind of a pet peeve of mine when people say "PIN" number. The P-I-N stands for Personal Identification Number.

OOOH it peeves me when people say ATM Machine. ATM stand for automated teller machine so what you are really saying is automated teller machine machine! So glad I'm not the only one who gets that!

 

[RUDisney]

Originally posted by WebmasterAlex
I can never figure out why they always ask me "credit or debit", it comes out of the same account, why do I care?

The bank makes more money on the transaction if it's done as a credit card. Visa also affords you some special considerations if it is done as a credit instead of a debit card. So, it benefits the bank and the individual to always use your debit card as a credit card.

PinWizard, the clerk was wrong. You're money couldn't possibly have been taken from your account that fast if you didn't authorize a POS transaction. It had to go through an ACH transaction flow and wouldn't have reached your bank until at least the next day.

 

[GoofyforDisney3]

A debit card is called that because the money is debited from a demand deposit account (your checking) as opposed to a credit card transaction that is deducted the the available credit you have on your line of credit. When the clerk at the store asks you debit or credit, they are really only asking if you want to enter a PIN or if you want to sign the sales slip. Any time you use the card as a "credit" transaction you receive the same protection as you would on a regular credit card. If the card is stolen and used, you, the consumer, can get the money back in you account. You still will need to go through the written dispute process, which most banks give you a fax number to use and also will give you a provisional credit to give you the money back sooner (while waiting the outcome of your dispute). REG E (law) states the bank has a certain amount of time (30 days if memery serves correctly) to credit your account, but most banks get the money back to you much sooner. Any time you are afraid you card has been lost or stolen, please report it as soon as possible. If you report it with in 48 hours of you determining that it is missing you are not responsible for any fraudulant transaction. If you do not report it, then you can be held liable for transactions (again if memory is working tonight, it is $500.) Also, another tidbit of info is that the VISA regulations banks follow are much more consumer friendly then the laws are and that is a good thing.

 

[RUDisney]

Originally posted by GoofyforDisney3
Also, another tidbit of info is that the VISA regulations banks follow are much more consumer friendly then the laws are and that is a good thing.

This is absolutely true. It has been amazing for me to find out some of the rules that are consumer friendly (and sometimes absurd) in the Visa regs. They are not in place to protect the banks. First priority is to the consumer... then to the merchant... the bank usually gets stuck holding the bag.

 

[caitycaity]

i have also had checks denied with plenty of money and for no reason that anyone at telecheck could tell me. i just stopped using checks except to pay bills.

For those of you who have had issues with writing checks, why don't you use a debit card, or a Visa check-card, etc.?

as someone who has had a visa check card for about 5 years now, i can tell you why i would prefer not to have one. i've had my wallet stolen twice since having the stupid visa check card. it is a total pain in the you know what to get your money back. the first time they completely drained my checking account and i could not pay my rent!!!! i had to get cash via western union from my parents (very embarassing). yeah, sure, it's the bank's responsibility to give you your money back, but unless you are with a bank like bank of america which advertises that they will give you your money back on the spot (which i am not), it is a long and ANNOYING process that can take a month or two. i had to get several documents signed and notarized, turn them in in person to my bank, and then wait for them to give me MY money back.

i hate check cards. imho they are a necessary evil, but if i had the choice, no way would i use one.

 

[RUDisney]

I hear exactly what you're saying, Caity.

I was just at a webinar for Check 21. That will go into affect on October 28th and provides a provision that says that banks will have to recredit your account within 10 days of receiving written notification from the customer about a potential fraud.

BTW, Check 21 is the regulation that will allow banks to exchange MICR information and images instead of paper documents. It will speed up funds availability by allowing a bank that receives a $1million check on the east coast to clear it the same day with a west coast bank as long as it sends it into production by 1:00 p.m. est. It will also allow banks to electronically return items. This is my project at my bank, so I'm a little overly zealous about it. We can also transmit transactions from the branches to DP without having a need to transport the physical documents until the next day. Way cool stuff, IMO.