My mom doesn't think so. She prefers CC's from non banks, like discover or amex. I personally think having a bank card with who you bank with is a great idea. I'm with DCU and I have their visa platinum card non rewards and love it. I also have a citi cc and a bofa cc. I don't bank with them though.
She says its not a good idea because if you miss a payment they can just go into your checking or savings and take money out without your authorization. Or even if you're on time, she thinks if you carry a balance month to month for too long they can reach in a take your money. Non bank cc companies don't do that she says. I don't know lol.
I personally prefer bank CC over companies like discover, amex or capital one mainly because if I have a question I can just go to a branch. But I do want an amex card. Preferably the bce.
Does any one have situations where money was taken out their account without their authority? That actually happened to me, well Chase froze my account because I never paid the balance. They never took anything out but that was my fault so I don't blame them. Ive since rectified the situation and closed my chase accounts and moved to dcu because of their less restrictions on checking and savings accounts. I did have another situation from fifth third bank where they took money from my checking to pay down a balance on a repoed car i got years ago (2006). I closed them out and moved to chase at the time (2007).Thoughts?
She says its not a good idea because if you miss a payment they can just go into your checking or savings and take money out without your authorization. Or even if you're on time, she thinks if you carry a balance month to month for too long they can reach in a take your money. Non bank cc companies don't do that she says. I don't know lol.
I personally prefer bank CC over companies like discover, amex or capital one mainly because if I have a question I can just go to a branch. But I do want an amex card. Preferably the bce.
Does any one have situations where money was taken out their account without their authority? That actually happened to me, well Chase froze my account because I never paid the balance. They never took anything out but that was my fault so I don't blame them. Ive since rectified the situation and closed my chase accounts and moved to dcu because of their less restrictions on checking and savings accounts. I did have another situation from fifth third bank where they took money from my checking to pay down a balance on a repoed car i got years ago (2006). I closed them out and moved to chase at the time (2007).Thoughts?
I agree. Its basically a personal decision which is what I told her but she still doesn't think its a good idea. Oh well.
@navigatethis12 wrote:
@black_citi wrote:
She says its not a good idea because if you miss a payment they can just go into your checking or savings and take money out without your authorization. Or even if you're on time, she thinks if you carry a balance month to month for too long they can reach in a take your money. Non bank cc companies don't do that she says. I don't know lol.They do have the right to invoke the Set-off clause/rule/whatever( you want to refer to it as. That is where the bank can seize money that you owe them if it's in a deposit account with them. This can't be used for credit cards, so she has nothing to worry about and they wouldn't do it just because you miss one payment. You should educate her how credit cards work. American Express and Discover both have a banking unit, so she is still with a bank.
Oh she is quite good at managing her credit. She has never been late or had to file bk. Her credit scores are probably very close to if not over 800. She's 61 now. My father on the other hand is a different story. He is TERRIBLE with money and CC'S. He's 62.
I don't have a problem with why she chooses not to have CC's with banks but she doesn't like the fact I do. It's not something we talk about all the time but sometimes either she or I may bring it up and we may have a small discussion. I was just wondering what others thought about it.
@money_talks wrote:
@navigatethis12 wrote:
@black_citi wrote:
She says its not a good idea because if you miss a payment they can just go into your checking or savings and take money out without your authorization. Or even if you're on time, she thinks if you carry a balance month to month for too long they can reach in a take your money. Non bank cc companies don't do that she says. I don't know lol.They do have the right to invoke the Set-off clause/rule/whatever( you want to refer to it as. That is where the bank can seize money that you owe them if it's in a deposit account with them. This can't be used for credit cards, so she has nothing to worry about and they wouldn't do it just because you miss one payment. You should educate her how credit cards work. American Express and Discover both have a banking unit, so she is still with a bank.
What if the CC gets charged off? Can the bank then dip into your deposit account to pay off the CO?
Also like longtimelurker stated, the bank will have more internal information about your banking that may be considered for things like CLIs.
That's what happened to me back in 2010 with Chase.
The CC I had had a 5000 limit on it. I owed $6000. I lost my job and couldn't pay the minimums. They put a judgement against me in May 2010. I didn't have a job so it wasn't much they could do after that.
I eventually got a job working PT for fedex in June of that same year. I never told Chase about it.
In September, they froze my checking. I had DD with fedex so the money would go in, but I couldn't take it out. It took 40 days for me to get my account unfrozen. I agreed to pay $130 a month for 5 years. Interestingly there were no interest charges. That $130 went directly to principal.
In December 2012 I owed $1700. I settled the account for $1000 (they made some "adjustments" to the account plus I gave $1000 one month which is why it got so low so quick)
I learned my lesson. It is 100% my fault. I don't blame Chase. I shouldn't have took the card. I was 23 when I got it, 25 when they did the judgement, 28 when I finally settled.