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Credit Card advice?
- Thread starter sillyspook13
- Start date
wannab@dis
Well-Known Member
Laura22 said:
I'm not picking on just you, but the logic that you (and others) have used in this thread. The credit card is not the problem. The irresponsible credit card holder is the problem. Using credit cards wisely will build your credit score faster than anything other than a mortgage.
I exclusively use my Disney Visa card for personal expenses and a Fleet (now Bank of America) card at work. I will fly to Disney for free from the Fleet rewards and spend 200 rewards dollars from the Disney Visa while there. I also pay off both cards at the end of the month.
Used responsibly, credit cards are a no brainer. Used irresponsibly, and you can get into trouble. The same can be said for many things in life!
Kadee
New Member
wannab@dis said:
I agree with you on this! It is the PERSON not the card that messes things up. We have ONE card and we use it once every 4 months or so just to keep it active....usually for gas or something and pay it off as soon as the bill comes. We use our debt card for everything....even my WDW ressies. Like Laura said, it feels good to know you paid for it and don't have to look forward to the bill. BUT I do think having one to build credit is a good idea. Just be responsible.
Yellow Shoes
Well-Known Member
I'm hoping someone will come along and refresh my memory re debit cards.
There was a post perhaps 6 months ago about the pitfalls of using a debit card, especially for hotel reservations.
It was something like, debit card charges go to your bank immediately whether they are right or wrong. It is possible to be double charged, then overdraw your account and come home to a huge mess.
There are lots of tricks to sticking to a budget and still using credit wisely. Some people transfer the money as soon as they make the charge so they don't see it in the checking account. Others keep a running total so they know what the bill will be. It is easy enough to get on-line access to your account and check it daily for new charges.
I put everything on my credit card--gas, groceries, utility bills, eating out, etc. I know how much money I have and how much I can spend, so there's no problem.
What the card is good for is emergencies. What would you do if your car needed major ($1000+) repairs? What if your refrigerator stopped working this afternoon? Did your basement flood and ruin yards and yards of carpet? (these are actual times in my life we've not paid in full)
Sometimes you may need a week or two to get caught up with that kind of catastrophe.
It's like eating. Just because there's a half gallon of mint chip in the freezer doesn't mean you have to eat it all today.
There was a post perhaps 6 months ago about the pitfalls of using a debit card, especially for hotel reservations.
It was something like, debit card charges go to your bank immediately whether they are right or wrong. It is possible to be double charged, then overdraw your account and come home to a huge mess.
There are lots of tricks to sticking to a budget and still using credit wisely. Some people transfer the money as soon as they make the charge so they don't see it in the checking account. Others keep a running total so they know what the bill will be. It is easy enough to get on-line access to your account and check it daily for new charges.
I put everything on my credit card--gas, groceries, utility bills, eating out, etc. I know how much money I have and how much I can spend, so there's no problem.
What the card is good for is emergencies. What would you do if your car needed major ($1000+) repairs? What if your refrigerator stopped working this afternoon? Did your basement flood and ruin yards and yards of carpet? (these are actual times in my life we've not paid in full)
Sometimes you may need a week or two to get caught up with that kind of catastrophe.
It's like eating. Just because there's a half gallon of mint chip in the freezer doesn't mean you have to eat it all today.
wannab@dis
Well-Known Member
Yellow Shoes said:
I've heard the same also. My rule of thumb is to never use the debit card for anything that could be messed up. The debit card has a direct line to MY money. The credit card has a direct line to SOMEONE else's money and if a mistake is made they can fix it up for me and I don't have to worry about it!
daddyphat808
Member
Yep I am Mel's Husband. And I am glad you read that book!
Either way you look at it is YOUR decision. For me it was a bad choice with the best intentions. It is very easy to use them in the wrong manner and fall into a mess. Yes there are people that can use them with some responsibility, but most don’t. Credit card companies make billions off of the ease of use and people with the best intentions. In fact a debit card will do everything a credit card will do and they are covered and protected just the same as a credit card.
Info directly from visa.com
Important facts about debit cards
* Debit cards have the same security protections like as credit cards. Just like credit card cards, debit cards have Zero Liability fraud protection and dispute resolution options.
Zero Liability fraud statement
http://usa.visa.com/personal/security/visa_security_program/zero_liability.html
Like I said the decision is up to you. You DO NOT need a credit card to build a credit score. A car loan or mortgage will do that. I may get flamed for all of this, but lets compare net worth in 10 years of my debt free lifestyle.
Either way you look at it is YOUR decision. For me it was a bad choice with the best intentions. It is very easy to use them in the wrong manner and fall into a mess. Yes there are people that can use them with some responsibility, but most don’t. Credit card companies make billions off of the ease of use and people with the best intentions. In fact a debit card will do everything a credit card will do and they are covered and protected just the same as a credit card.
Info directly from visa.com
Important facts about debit cards
* Debit cards have the same security protections like as credit cards. Just like credit card cards, debit cards have Zero Liability fraud protection and dispute resolution options.
Zero Liability fraud statement
http://usa.visa.com/personal/security/visa_security_program/zero_liability.html
Like I said the decision is up to you. You DO NOT need a credit card to build a credit score. A car loan or mortgage will do that. I may get flamed for all of this, but lets compare net worth in 10 years of my debt free lifestyle.
wannab@dis
Well-Known Member
daddyphat808 said:
Let's compare now...
Unfortunately, you should call your bank concerning the debit card. There's a good chance that you would be out of money if a problem happened with your debit card. Sure, you will get it back once you file the proper paperwork or fraud reports. But in the meantime, the money WILL NOT be in your account. If you have $50 or $10,000 and they take it, you will be without money until the red tape is completed.
For a credit card, any disputed charge is immediately locked and you are not required to repay it. Therefore, YOU are not OUT any money.
Responsible usage of credit cards does not cause anyone financial problems. In fact, they will be rewarded with better credit and if they choose the right card, travel or other rewards. I pay ZERO interest and ZERO fees for my cards, but I reap the free airline tickets and Disney reward dollars. Sound like a good deal to me!
Just because the Jager is free doesn't mean you have to drink it...... :lookarounYellow Shoes said:
Don't get me started........ 
SpenceMan01
Well-Known Member
I've had a CapitalOne card since I graduated high school (4 years now). I've *never* carried a balance. I always pay it off every month. I've got a limit in the high $4k area. I should have good credit, right? Well, not entirely. CapitalOne has basically screwed me over by not reporting my credit limit. For credit scores, all they see is that my highest balance was ~900. They assume THAT is my limit, which severely hampers my score.
A word of advice: DON'T go with CapitalOne.
I'm looking into getting a Disney Visa, but with the lack of special offers and a measly 1%, I don't think I'm going to 'dive in' right now.
BTW: Pass that Jager my way... with some lemonade, please. Yum!
A word of advice: DON'T go with CapitalOne.
I'm looking into getting a Disney Visa, but with the lack of special offers and a measly 1%, I don't think I'm going to 'dive in' right now.
BTW: Pass that Jager my way... with some lemonade, please. Yum!