02-11-2012 07:03 AM
I am not judging anyone, and I believe that I've said that time and time again. I don't feel judged by anyone on these boards. What reason have I to? They don't know me from a can of paint and neither do you and vice versa. What I will always state, though, is my honest opinion when responding to a post or thread. Call it the "New York" in me or call it me being a "call it as I see it" individual since---let's say birth. I don't walk around wearing kid gloves and I'm not a smoke blower. I've never put down anyone personally--but I do state my thoughts. I've garnered a significant amount of information from MyFico and it's been for the good for me. Yes, people on these boards do tend to be bragadocious. I take them with a grain of salt. Yes, people on these boards seem to be highly sensitive when anyone a contradictory opinion is stated. It's obvious everyone has their own credit handling practices but to shoot down one as if it's unequivocaly wrong simply because "the masses" state that they'd prefer another route is unfair. As I mentioned in my posts, debit cards work for me and I explained my reasoning why. This thread seems to be about shooting debit cards down for what reason I don't know. I'm just defending them based upon my experience.
02-11-2012 07:09 AM - edited 02-11-2012 07:16 AM
I have not used my debit card or cash in over a year, I use nothing but CC's anymore, and I'll use the CC for a purchase that yields me the highest cash back for that purchase, like my AmEx BCP is used for groceries (6%) and gas (3%) exclusively (except when my Discover is 5% back on gas) etc......
Why use debt card or cash when you can use a CC and earn cash back?? Not to mention the fact that using your debit card puts you at higher risk.
ETA: @ jasimae, I only read the first page of replies, I just do not want you to think I'm responding to anything you posted, I was writing my reply at the time you posted your latest reply, so I just wanted you to know, my reply was just my opinion, and not based on any replies in this thread.
02-11-2012 08:35 AM - edited 02-11-2012 08:37 AM
There are two reasons I prefer credit cards over debit cards.
The first is in the case of fraud. I can't imagine a potential thief emptying my bank account to only leave me without funds having to go through the process of trying to recover my own money. Credit cards have much higher protection than debit cards. For instance, an enterprising theif gets my pin number using my debit card. In a court of law, the bank can claim that is validation. For a credit card, at least they'd have to produce a slip with my physical signature. The current laws haven't kept up with the chip and pin fad that has been enveloping Europe. I dont' see why I would make things easier for the bank. I still believe strongly that as a consumer, the onus of proof should always be on them, and not me. With a pin, I need to prove it was compromised.
Secondly, after my financial misadventures in college, I just avoided using credit. I was starting to make some real money and just paid cash or debit for everything. One day, I was stunned that my application for credit was rejected. Now, this was before I understood credit, Fico scores, CRAs, and the democratization of credit that was already in place for the past 25 years. My reaction was, "you're kidding? I make $XXXX, and have $XXXX in your bank, and I own a business making $XXXX the past 5 years, and you won't approve me?" I realized after that experience that while you can avoid credit (nothing wrong with paying cash for everything), the price you pay is to be encumbered with some of the inconveniences of having "bad" credit.
After that, I realized that with a 500 Fico score, it doesn't matter how much you make or have in the bank, you will never be approved for anything without going through immense inconvenience.
Bottom line is that a debit card while a larger liability adds nothing to building credit. It's the classic "added risk with no value added" proposition.
02-11-2012 11:06 AM
I'm not fixated with credit cards and I try not to use mine that often--again, for large purchases or purchaes that I'd like to float. I really don't care much for rewards or points and really don't judge cards in that way. If the card has a promotion or program associated with it then I might try to remember it but I don't go out of my way to do so. For me, I'd rather spend my cash and save the credit for when I really need it. I don't rely on "other people's money", which is what credit is, only my own money piled up in my bank account. Yes my Discover Card has the 5% categories and my AmEx has MR Rewards points and my Barclays Priceline Visa has it's own point program, and all that is nice and good. However, it's not the most important thing to me. Some people want to be perceived in a certain financial light because they use their credit cards for everything. Ok good for them. I could frankly care less. Everyone has to do what works for them and using my debit card works for me. As long as I've got the cash to cover what I need then I'll spend that first, over using a credit card. I've never been anywhere where cash was not accepted and until it comes to that point then I will continue to use it and my debit card.
Anyone else find this statement funny? Considering you have nearly 250 posts on here, and a good 95% of your posts are in the Credit Card forum.
02-11-2012 11:41 AM
@ Florida State 12--any reason why you chose to point that out? Yes, I have 250 posts on here. So what? But since you're keeping track, I guess it matters to you. I don't pay attention to how many posts I have because I post on whatever thread interests me. I also post on the rebuilding thread and mortgage thread, too. Since you're obviously a genius then you should have been able to decipher what I meant by that statement...I am not fixated with credit card rewards. However, if I have rewards coming to me from me using my cards then I definitely would like to receive them, because I am entitled to them. Who wouldn't? Hence my thread about AmEx MR rewards points not showing up in my account. However, to clarify for you, the rewards from credit cards are not my focus or reason why I seek to obtain credit cards...I am not fixated on them in that matter. I am on these boards because they are genuinely interesting and informative and many folks have a genuine desire to pass on useful information. Actually, I find that most of the people on here do pass on useful information; and not a day goes by that I'm not thankful I've found this site. Seems like someone woke up on the wrong side of the bed this morning.
02-11-2012 08:27 PM
OK, let's all simmer down and move along.
02-12-2012 07:15 AM
Speaking of fraud it hit close to home for me yesterday. Visited my mom yesterday and she told me the day before she checked her email and she had an email from BoA that her credit card statement was ready. Instantly freaked out because she didnt use the card at all the month before. Only uses it for online purchases.
Opened the statement and there is a 500 dollar plane ticket on there. Immediately called BoA, she didnt have to really prove anything because the CSR said the charge is outside her normal spending pattern and they believed her when she said she didnt make the charge. They tagged the charge as fraudulent and will be sending her a new card with a new number.
Now if it had been on a debit card that money is out of her checking account and you have to fight with the bank to get the money back. With a credit card the thief is spending the banks money instead.
Now I assume BoA will prosecute this person? You have gotta be pretty dumb to buy a plane ticket with a stolen credit card number. You have to buy the ticket in your name that matches on your government issued ID, so I am guessing all BoA has to do to prosecute is contact the airline, find out who purchased that ticket, slam dunk.
02-12-2012 08:21 AM
BOA just emailed me a few days ago to let me know they froze my Debit card due to possible fraudulent acitivity. I called them, confirmed that two charges were in fact legit. They went on to tell me that my card was swiped at a machine 2+ months ago, that was hacked, and all card numbers were stolen.
I wish they would have deactivated it 2 months ago...instead of waiting for something to happen.
I have a US Airways miles debit card. Not sure I'd ever gain enough miles to ever redeem anything - not sure my CL on my two CCs would be an easy allternative, given their CLs and the possible high Util % despite never rolling over a bal.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.