Credit Card Surprises!!

[elliair]

Three years ago, we went on the Carnival Elation Mexican Riveria. I paid cash for our gasoline going to LA and our hotel room which was guaranteed with my business American Express card. We used our Discover card on the ship for our sail and sign. That's the only place we used it the whole trip. When we got home, I received a phone call from Discover wanting to know if we placed long distance phone calls from LA to the Phillipines and a (few other places) on the Sunday we returned. Apparently, someone from the ship got my Discover card number and placed calls with it. They immediately cancelled my card and I had to send a letter stating that I did not make the calls. BTW, the calls were made from a pay phone located on the pier where the Elation was docked. So whether debit or credit you can still get stung. BTW, it was the pattern of our usage of the card and the unusal phone calls is what sent the red flag flying. I'm glad Discover was on top of it.

[jrtmouse]

Target -

I thoroughly enjoyed your story! You are too funny! The TV!!!! HAAA

 

Everyone else - It certainly WOULD be nice if everyone had the discipline to use their credit card and pay it off every month. Wouldn't that be nice? Yeah, let's be realistic here. Many people...let's face it, most people, don't have the will power to do so, including myself. Which is why I choose to use the debit card. I look at it as spending control.

 

I'm glad that I'm learning this lesson at the age of 25 instead of later on when I'm up to my yin yang in debt! That's just tempting fate every time you pull that credit card out. (Don't get me wrong, Sony points are great, but risking a buttload of debt over earning piddly points to redeem for some $50 item or A plane ticket isn't worth it in the long run!)

 

Thanks again Target for the story!

[aggieastrosfan]

I know of USAA insurance products, but unfortunately we dont qualify to use it. So that is useless to general public. :-(

I don't know about other parts of the country, but here in Houston, you can tie a check card from Chase to your Continental OnePass miles account. I'm not sure what the annual fee is, but you get a mile for every $2 spent on your check card.

 

Since Continental is by far the dominant carrier here, I'm not sure if it's always Continental, or if they use other airlines in other parts of the country. They also issue a credit card that gets the OnePass miles, for a mile a dollar.

 

If I actually had a need to fly anywhere on a regular basis, I'd think of switching, since I currently hate the bank I currently use. :rolleyes:

[nho9504]

By just using a debit card and not credit cards, and paying everything in cash, do you think this would have an effect on credit/FICO scores for those young people interested in purchasing their first home ??

 

Yes, you might have a problem if you dont have a credit history established.

Having a good credit history demonstrates you are a responsible person in term of handling your financial matter, and therefore make you a "good risk".

 

Lenders want to see how you handle your payment towards your credit line.

 

Most people would need some credit history to obtain a car loan, a house mortgage.

 

I hate cash transactions because I would lose track of it. When we travel, especially aboard, inevitably we would use cash more often than credit cards, for transportation, foods, small purchases etc. I always tried to write down the items on a diary so I can keep track of them. Using credit card for almost everything is great. When statement comes, I match items with receipts, group them into categories, such as groceries, utilities, etc Post them into Microsoft Money. Voila, I can pull up a report anytime to see where our money went. For each trip, I can see how much we spent in food, lodging, transportation, airfare, etc etc and the total of it. It is great.

 

I understand many use debit cards as a mechanism to keep them stay on budget. Fortunately it is never an issue for us. We never spend more than what we cannot pay. Matter of factly, we normally only spend 1/2 of what we can pay.

 

We have never had a car loan, they are bought by cash because we hate to pay the interest for a depreciated asset. New cars too because we want the new car warranty. (It saved us a huge bundle in one occasion because the Toyota Camry I bought was a lemon - it went thru extensive warranty work in its first 6 months. We almost had to resort to Lemon Law but Toyota finally fixed all the problems - transmission was replaced when it had less than 2,000 miles on it.)

 

Our dwelling is paid for. Our first home was paid off in the 3rd year. ditto the home followed that. Both were bought as new homes too. Current dwelling is a condo - a used home, purchased with cash.

 

Personally I found that the most important concept is to know your own ability to pay and stay with it. And I dont know why it seems very difficult to many people and they need extra mechanism to help them in this area. But if a debit card can help them to do so instead of going into debt, that is a good idea.

 

BTW, the statistics show slightly above 50% of credit card holders pay off their statements each cycle. So half of us are not tempted by the "easy money". ;-) The other half need some kind of help. For those who know they need help it is better for them to stay away from credit cards.

[PaulieM]

Like a classic Amex Green card. You have to pay off the balance, there is no credit line attached. There is a fee per year, but it will be less then interest if you are tempted to float the balance (like I always am). :)

 

Classic Amex shows up on your credit report as an account with payments showing. Its a great starting point for building a credit report.

 

Some quick info on the differences, and the levels of protection: http://www.fdic.gov/consumers/consumer/news/cnspr00/cvrstry.html

[nho9504]

I don't know about other parts of the country, but here in Houston, you can tie a check card from Chase to your Continental OnePass miles account. I'm not sure what the annual fee is, but you get a mile for every $2 spent on your check card.

 

Since Continental is by far the dominant carrier here, I'm not sure if it's always Continental, or if they use other airlines in other parts of the country. They also issue a credit card that gets the OnePass miles, for a mile a dollar.

 

If I actually had a need to fly anywhere on a regular basis, I'd think of switching, since I currently hate the bank I currently use. :rolleyes:

 

I use Chase, (remote banking because we moved away from Houston 5 years ago). The OnePass check card is free because you only earn 1 mile for every 2 bucks spent. It is not a good rate.

 

The regular OnePass credit card has an annual fee, probably $50 (standard for most airline affinity cards). That gives you 1 mile per 1 buck spent.

 

Continental's program is not a good program mainly due to availability of award seats. When we lived in Houston, eventhough Continental is the dominant carrier, we chose American Airline AAdvantage program. There is a major advantage to use AA's mileage - they allow you to have one stopover and open jaw on award ticket. Also your award ticket can change date (not itinerary) after ticketing, without fee. In essence, an award ticket (25K miles domestic and Canada including Alaska, but not Hawaii) is far more valuable than a cheapie economy ticket because you can go to 2 places and return from different location. We once flew from Ft. Lauderdale to Anchorage, went on a 6-day land trip. Then from Anchorage we flew to Seattle. from there we rent a car, drove to Vancouver, went on a 3-week Canadian Rocky Mountain trip and circled the Vancouver Island (Victoria is on Vancouver Island in case it is not familiar to many). Returned to Seattle. From there we flew home. The segment between Anchorage to Seattle was on Alaska Airline, an AA partner. All other segments were on AA. Essentially we went to Anchorage, and then to Seattle, before we finally went home. All for 25K miles. If it is a paid ticket, would be close to $800. So the mileage card was well worth it.

 

On another note, Chase has a dividend card, which gives you 3% CASH rebate on gasoline purchase and 1% on everything else. The rebates show up on your credit card the following month as a credit item (so to reduce the amount due).

 

However, the best Cash rebate card by far is the one from Citibank. You can apply it online. AAdvantage cards are also offered by Citi. Details on AA website because they are running big mileage bonus promo till Dec. Good deal.

[nho9504]

Like a classic Amex Green card. You have to pay off the balance, there is no credit line attached. There is a fee per year, but it will be less then interest if you are tempted to float the balance (like I always am). :)

 

Classic Amex shows up on your credit report as an account with payments showing. Its a great starting point for building a credit report.

 

Some quick info on the differences, and the levels of protection: http://www.fdic.gov/consumers/consumer/news/cnspr00/cvrstry.html

 

Oh, I remember those AMEX Green cards. We cancelled them once Visa/Mastercard are more widely accepted and carry NO FEE. :-)

[DrivesLikeMario]

Although I despise owing anything on a credit card, I still have them as they are very necessary when traveling.

 

Something I've learned recently is that carrying around an ATM Debit/Visa card is VERY dangerous when traveling because it's easily stolen and forged.

 

Also, before traveling, call your credit card company and let them know what countries you're going to and when you're going. Some companies, such as Citibank, really monitor things like unusual charges, but others don't. It's a way to C.Y.A. should your credit card get stolen.

[CruiseFever]

Something I've learned recently is that carrying around an ATM Debit/Visa card is VERY dangerous when traveling because it's easily stolen and forged.

 

Moreso than a credit card? How?

[BJS]

There was a thread going on the Europe board about someone who became victims of the Debit/Credit Card plan (scam). Within about 3 days $2500 was depleted from their account fraudulantly. The theif didn't need their pin # since he used it as a credit card. They were advising to get an ATM card without a Visa logo because of this. If they had used a credit card and someone used their card they would have had a record of the transaction that could have been traced.

[DEERINH2O]

I always use our debit card for every thing. We used it on our last cruise on RCCL. We had no problems, we stayed at the Sheratin for two days before and used it on the cruise. I make sure there is plenty of money for our trip and then go with no worries. I don't owe anything when I get home and start saving for the next trip.

Personally I like the debit card and will continue to use it.

 

Kathy

[LARGIN]

If you can successfully manage your money, it doesn't matter if you use a debt or a credit card.. I am sure there are good reasons out there to use one over the other but since I do not have a debit card I cannot make any comparisions.. Since I pay the balance off each month and cannot remember the last time I paid any interest, I feel that a credit card is better for me than a debit card.. I get 30 days using their money..

[Target]

One last "confession." Another reason I use my debit card instead of my credit card: My checking account does not have a large balance...the poor fool that puts the effort into stealing it and trying to use it will probably buy a pair of socks and run out of money. My credit card has a limit of $7500. If that is stolen, then they have some money to use....then I have to prove it wasn't me. I can get reimbursed if my debit card is fraudulently used just like my credit card. In my case, the thief wouldn't get far on my debit card, whereas, my credit card would take him on a nice trip!

 

BTW, our debit card shows our transactions just like a credit card, so it is very easy to see our trip's activities when we arrive home. We can see just as easily where our money was spent during the trip.

 

There has been a great exchange of info on this thread! Thank you for the great input.

 

Also, I am extremely jealous of the person who pays cash for their condo and cars....where do you work and are there openings? Or better yet, can you adopt me?;)

Laura

[debidls]

For those of us, a debit card is the only choice. Do to divorce/credit problems

I can't get a credit card, so my debit card works best. Yes, there are

down falls. The money comes out 2 days after I use the card. Somebody

even got a hold of the number. They used it on the internet. I check my

account almost everyday because of this. I did get all the money back.

I used my debit card for my final payment & will be using it for 8/28

cp cruise. As long as I monitor my account frequently I should be ok.

Someday I will get a credit card or maybe not.

[1cruiselvr]

The answer is simple - those that choose debit over a credit card do so because: 1)they can't get a CC or have maxed theirs out

2) can't budget themselves when they own a CC and end up in trouble.

So for them it's the only way to buy without using cash and stay financially sound. As many have pointed out in previous posts, it's not the easiest way to make purchases when travelling, but it seems to be the best way for some people.

Happy Sailing!

[PeabodyNVL]

There was a thread going on the Europe board about someone who became victims of the Debit/Credit Card plan (scam). Within about 3 days $2500 was depleted from their account fraudulantly. The theif didn't need their pin # since he used it as a credit card. They were advising to get an ATM card without a Visa logo because of this. If they had used a credit card and someone used their card they would have had a record of the transaction that could have been traced.

With my bank, if this happens with your debit card, the money stolen will be replaced the next business day.

[Target]

With my bank, if this happens with your debit card, the money stolen will be replaced the next business day.

On a good news/bad news thought....good news is, after paying bills, I don't have $2500 in my checking account for my debit card to be abused. Bad news is, after paying bills, I don't have $2500 in my checking account for my debit card to be abused....:(

[imsulin]

I have to agree with CruisingIsLife, Chris. I, too, try to budget my expenses and allocate enough funds in my account to cover them when I travel. It helps me to be more "level-headed" when I travel, and I use AMEX travellers' checks to cover my purchases. I have an AMEX and MC credit cards, which I try to use monthly, just to keep them "active", and preserve the line of credit. I've had several experiences of clients trying to pay the balance of their cruise/tour with a CC that had a high balance...that didn't go through, because the check they wrote to the CC company had not yet been credited. There are different types of debit cards, too, and you need to know specifically what type you have. I don't like getting bills when I get home from vacation, and don't want to have to worry about paying for them. I was recently in Oregon, and tried to rent a car with my bank card, which they wouldn't take, so I had to use my CC, and also paid the anticipated amount up

front in cash. They also charged my CC this amount, but it was credited two days after I returned the car. I've never had this problem in AL, GA, or FL, so I think it depends on the state and the car rental company. You really have to know what you're doing with all of this. I like having my CCs with a very low or zero balance in case of emergencies.

[nho9504]

One last "confession." Another reason I use my debit card instead of my credit card: My checking account does not have a large balance...the poor fool that puts the effort into stealing it and trying to use it will probably buy a pair of socks and run out of money. My credit card has a limit of $7500. If that is stolen, then they have some money to use....then I have to prove it wasn't me. I can get reimbursed if my debit card is fraudulently used just like my credit card. In my case, the thief wouldn't get far on my debit card, whereas, my credit card would take him on a nice trip!

 

BTW, our debit card shows our transactions just like a credit card, so it is very easy to see our trip's activities when we arrive home. We can see just as easily where our money was spent during the trip.

 

There has been a great exchange of info on this thread! Thank you for the great input.

 

Also, I am extremely jealous of the person who pays cash for their condo and cars....where do you work and are there openings? Or better yet, can you adopt me?;)

Laura

 

Target,

 

credit card holder is protected by law on fraudulently use. debit card is not, but many banks for good business purpose, protect debit card as well. They are not required by law to do so. While credit card companies are requried by law to do so. One important thing is, when you have a dispute with a merchant, be it a service provider or a vendor, if you paid by credit card, you can dispute the charge with credit card company. They will start an investigation. In most situations if you have good reasons to dispute, eventually you get the charges reverted even if the bad merchants do not give you refund. A debit card would not have this "privilege".

 

The little secret to pay off your car by cash is not to max out your credit card and never incur financial charges. ;-)

 

Seriously, know how to budget one's spending and try not to spend all one can afford, in other words, always live UNDER one's means, is the key to start build up one's financial reserve. So you can have far more choices in life to do things the way you want it.

[nho9504]

If you can successfully manage your money, it doesn't matter if you use a debt or a credit card.. I am sure there are good reasons out there to use one over the other but since I do not have a debit card I cannot make any comparisions.. Since I pay the balance off each month and cannot remember the last time I paid any interest, I feel that a credit card is better for me than a debit card.. I get 30 days using their money..

 

Yup. Not only you get 30 days using their money, you may get cash rebate to boot if you use dividend cards. The CC market is so competitive, virtually anyone and everyone is offering some kind of rebate - whether it is a straight cash, or rebates applied to a new car, or rebates applied to insurance premiums. State Farm keeps sending me their version of Visa card, the rebate is applied to insurance premium.

 

Me, I prefer a straight cash rebate that I can use it for whatever I like.

 

I strongly advise people with a family to use a dividend card from Citi. The 5% rebate on grocery stores, drug stores, and gasoline purchases cannot be ignore. See how much you spend each month in those areas, and see thru no efforts of your own, you get 5% back from the money you have to spend anyway. I see no reason why not to take advantage of it. 5% of $1000 is $50. I am sure if there is a $50 bill on the ground, no one would ignore it not to pick it up. It is the same with the dividend card.

 

There is another dividend card from Fidelity Investment. You can choose the rebate to go in either your IRA, or your children's education IRA (529 Plan ?).

 

Lots of incentives out there to compete for your business, folks.

[aebalc]

I would certainly think twice before using a debit card, especfially if you have a LOC on your account.

 

 

LOC? Anyone know this abbreviation? I hate all those abbreviations half the time they take me longer to figure out than it would have taken posters to type out.

 

some guesses lots of credit ** lack of cash** Language of Canada** licorice on crackers?

[West Coast]

LOC? Anyone know this abbreviation?

LOC = Line of Credit

[can786]

Another work of caution is that it is a good idea to carry two different credit cards if possible. On my Viking River Cruise in May a fellow passenger had her wallet (containing her credit card) stolen out of her backpack on the second day of the cruise. They were able to cancel the card, but since she and her husband had a joint account they were without a credit card for the rest of the trip. And just two weeks ago while on vacation in New York our credit card was declined when we tried to use it to pay for dinner. We knew we were nowhere near the credit limit, and both my husband and I had our cards with us, so they weren't lost. Luckily I have another credit card I've been using to accrue miles, so I was able to pay for dinner. When we called the credit card issuer we found that they had put a fraud alert on our account and frozen it because someone had fraudulently charged almost $8500 to our card over the internet. They had tried calling us but got our answering machine since we were on vacation. I was very glad to have that second card so we didn't have to worry about running low on cash before we got home. I would recommend one traveler carry one card and the spouse/travelling companion have another card on a different account.