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An article from Frank Abagnale, Catch Me If You Can
@Anonymous wrote:
Interesting read! Confirms what many posters have said.
And @Anonymous just posted yesterday in the big Apple post that she will "never in a million years" tie her debit card to Apple Pay
The article was an eye opener for me. I'm glad I have two checking accounts and the account that my debit card is attached to never has more than $50 in it.
@CreditInspiredI am a male 😂 I feel like I have told you this before
But yes, I absolutely don’t use debit cards. I freeze them whenever FIs send them to me. I learned the lesson about weaker consumer protections on them the hard way. Fortunately my bank did right by me in the end but I was out the money the whole time they investigated which took about three weeks.
@Anonymous wrote:@CreditInspiredI am a male 😂 I feel like I have told you this before
But yes, I absolutely don’t use debit cards. I freeze them whenever FIs send them to me. I learned the lesson about weaker consumer protections on them the hard way. Fortunately my bank did right by me in the end but I was out the money the whole time they investigated which took about three weeks.
Wow @Anonymous I have been told this before by @AverageJoesCredit . I can't believe my brain can't get this right. So sorry. I promise, it won't happen again
Ever since I read an article by Frank Abagnale on this very subject, I have had my debit cards frozen and in a lockbox. I haven't carried a debit card in my wallet in well over 2 years now. I rarely use cash anymore now that I am using CCs with rewards.
I have a few friends who are Dave Ramsey followers. I keep telling them, credit cards are not bad just as guns are not bad. It is all in how a person uses them. One friend keeps telling me how she is saving so much money not having credit cards and wants to buy a house in a few years. Pays everything with her debit card. I keep asking her what her credit score is and how is she going to qualify for a mortgage if she has not established any credit?
You can lead a horse to water...
I will forward this article to her.
ETA: It was Frank Abagnale's google talk that I saw that turned me away from using debit cards.
@Medic981 wrote:I have a few friends who are Dave Ramsey followers. I keep telling them, credit cards are not bad just as guns are not bad. It is all in how a person uses them.
TLDR at bottom;
I will admit that I do follow Dave Ramsey, and when he is telling his target audience to "stay away from credit cards", it's like telling an alcoholic to stay out of the bars. So I don't really blame him for his sermon, and Medic, you are correct; It's the person and not the card/firearm. Besides, when those target listeners are $100,000 in debt, the last thing on their mind should be earning rewards on a credit card or their current FICO score. They have bigger problems.
Once you get yourself squared away, than yes, hopefully a credit card or two to help with that FICO score.
But I do disagree with Ramsey when he dismisses security and fraud issues surrounding a debit card. Sure, the odds are that the bank will EVENTUALLY reimburse you. But before your rent/mortgage check doesn't bounce?!? How long will your checking account sit at $1 (or negative due to OD fees) before you are reimbursed?
I have mentioned my method in the past. I am also NOT a debit card or cash person. But I did open a checking account/debit card with only $100 in it, no OD allowed, in case I ever do need to withdraw cash. It's basically my own pre-loaded debit card. If I ever need to re-load it, I swipe some money over with my phone app. Otherwise, it's a $100 loss if it is ever compromised, which I can live with. Also, for that "once-every-5-years" that for some oddball reason I have to write a check, I move the money over and this is also the ONLY account that I have checks for.
TLDR;
If you don't trust yourself with credit cards or don't qualify for any, at least open up a 2nd checking account, put "daily use" amounts in there, and use ONLY that debit card so your exposure is limited.
Just my opinion.
Two checking accounts, one in which you deposit your paycheck and it has not a debit card, the other has limited funds with the debit card attached. That could work.
I keep a Cap1-360 checking account with limited funds in it just so I can access cash if I need it, because I think it's a good idea. It most recently saved my bacon (and my travel companions'), when I was on a tiny little island and needed cash - from an overpriced and sketchy AF ATM. I chose Cap1 because it has no FTF and it's easy to transfer money into if I do deplete it. I've used it for ages while traveling internationally.
My main checking account that I pay bills with does have a checkcard attached to it, but that lives in in my document/fire box and has never been used.