@Minimalist wrote:My bank lets me know the minute the transaction is posted, and insures it's posted by me (100 times out of 100 it is!). If you can't find a bank with that kind of protection, that's on you. And with the protections through digital wallets that negates that point even further.
See the chart below from >this link< at Experian.
A credit reporting agency. 🤔
Wow. What was that response, @Minimalist? You're living up to your name by "minimizing" your potentially more risky behavior instead of just acknowledging that you were incorrect about legal protections after leveling that accusation at me? Seriously? Just because you've been fortunate with your bank so far doesn't mean that you always will be, and it doesn't negate the fact that federal laws provide better consumer protections for credit card transactions over debit card transactions. (See my multiple links above for supporting sources.) I'm not telling you not to use your debit card but simply letting you and others know that those transactions are not as well protected.
I don't need to find a bank that provides protections for debit cards, as my credit cards already do that, and they do it better than for any debit transactions. So, nothing is "on me."
I wasn't surprised to see you question my link to Experian since you seem so skeptical of credit cards and the whole system. That's one reason why I also included other supporting sources, and they all said the same thing. (I notice you questioned the source but failed to question the accuracy of their information.) The truth is that Experian and the other credit bureaus provide helpful blogs and articles to support consumers. They all aren't in it for exploitation. Even this very forum from My FICO is supported by Fair Issac, which makes a business model off of credit reporting and credit cards. Are they shutting us down from free discussion? No.
Oddly enough, I notice that after I replied to your post, you didn't just edit it; you almost completely rewrote it! Fortunately, I had quoted you in my reply, so for the record here are the original and edited posts to which I replied. Changing your post in that way after someone replies is disingenuine behavior if we're trying to have an honest and open discussion. (Original posts were in red.)
= = = = = = = = = = = = = = =
Original version: It would all depend on the level of importance placed on those perks, I've never had any real use for them in the past, beyond cash back, since points and miles usually require a higher level of spending than I was or would be willing to adhere to. But that's an individual choice.
Edited version: Which, again, is a tool that works, for you. I choose not to base my self-worth off of how many cards I have or even if I have any at all. After this next bankruptcy (thanks to medical debt after COVID to the tune of $80k) I'll be learning to live off cash and living below my means while on a budget. Something that having 20 or more credit cards and having to monitor usage, fraud and spending on those cards is not conducive to. If/when I do decide to get back into credit, it'll likely be with one/two cards only for the forseeable future.
Original version: A look at the recent news of the levels of credit card debt accumulated in the 3rd Quarter 2024 ($1.17 trillion, with a T!) would put you in a pretty respectable category, and outside the norm of what most credit users behavior is like. Therein lies the issue, it's the same mentality with something like firearms, there's people who use them who have no business being anywhere near them. Holds true for credit cards as well. Alcoholics, cocaine addicts, credit addicts, all the same category. Not true of everyone, but you'll find the mentality more the norm than the exception, hence the aforementioned debt totals in the trillions.
Edited version: If you've seen the totals on accumulated credit card debt lately (1.17 Trillion, with a T, as of the 3rd Quarter 2024), you find the great majority don't. As well as DO rely on credit to live beyond their means, and are in debt up to their eyeballs. Same mentality as an alcoholic or a cocaine addict, once it starts, it's real hard to stop. And these numbers are likely just folks with 3-4 credit cards at a time, imagine what 20-100 will do in their hands.
Original version: Sorry, 100 percent wrong. Debit cards are on the same networks (VISA/MC) that credit cards are, and offer the same level of protections from fraudulent transactions that credit cards do. Some banks go about enforcing those protections differently, the banks I've dealt with in the past have always been on top of any fraudulent transactions on my account, when 100 percent of the time it was me making those transactions. Also, it doesn't hurt that I use 100 percent of my transactions on my debit card through Apple Pay, which offers even more significant levels of fraud protection since the 16-digit card number is completely changed for every transaction. Meaning, if someone were to try to steal that information, it would be to an account that doesn't exist. I have had my debit card compromised exactly zero times under those circumstances.
Edited version: 100 percent wrong. The same VISA/MC networks on debit cards offer the same fraud protections credit cards do, it's based off the network, not the means. If your bank can't do that, find another one. Also, I use 99.9 percent of all debit card purchases on Apple Pay, which offers even greater protections against fraud since it changes the 16-digit card number for each transaction. How many times has my debit card been compromised? ZERO!
Original version: I suppose I do value my FICO score, although not nearly at the levels of some around here, clearly. Once my bankruptcy is up in a few months (thanks to Medical Bills to the tune of $80k+ during and after COVID and the ensuing debt that accompanied it) I'll probably spend more time learning to live off cash, maintaining a budget, and living below my means, which in my view is extremely hard to do with 20+ credit card accounts that I'd have to micromanage on a constant basis. Not to mention having ADHD and Generalized Anxiety makes impulsiveness a bit of an issue, not exactly a great fit for me. And it's a bigger goal of mine to achieve $100k in savings/cash reserves than worrying about anywhere near that in credit lines. Finances over FICO and all that.
It is hard for me to understand the reasoning, just like I'm sure it's hard for someone to understand my reasoning toward needing so little. It's just so much easier to get in a world of trouble financially with so many cards that are used constantly, than with 1 or 2 that would be used sparingly in my case
Edited version: Imagine the financial freedom being credit card debt free offers. Have a look at the rebuilding and bankruptcy forums on these very boards, and you'll see the number of people who are the exact opposite of what you are. (You are in a commendable place, I give you credit for that, but also an Outlier.) I also place a certain value on my FICO score, although not nearly as high as most around here, clearly. I find it a better goal to have $100k in liquid assets/savings than the same amount in available credit. It would just do more for me, and I would sleep better at night knowing that's there if something goes bad again, and I won't have to rely on credit to fix it. Finances over FICO and all that.
@Thomas_Thumb wrote:Credit cards offer better fraud protection than debit cards. Better algorithms for detecting unusual charges. Less risk of getting stuck with unauthorized charges.
I refuse to activate debit cards that come with new accounts.
BTW - It appears this thread has been hijacked. Wasn't the OP asking for feedback from high Fico scorers losing interest in further increasing score or maintaining top tier scores?
Agreed, @Thomas_Thumb, and thanks for chiming in.
Yes, as with many threads, this one has veered somewhat off-course although I wouldn't call it hijacked. The conversation just shifted slightly from "losing drive after attaining a certain FICO" to the purpose of a high FICO or credit cards in the overall financial picture. IE: the conversation turned more to the reason behind losing drive or the reason someone might choose to maintain it. Still, I agree it's probably time to revisit the initial question: Did you? Unfortunately, the simple question which can be answered yes/no invites our members to expound on the WHY and led us to this point.
