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| 5/25 |
| 2000/7/8-9 [Finance/CC] UID:18619 Activity:high |
7/7 Chicken and egg question: I want to apply for a credit card and
never had one before. I apply for one and get rejected because
they said I don't have a credit history. How are you supposed
to have a credit history, required to obtain a credit card, when
you've never had a credit card to develop that history?
\_ This is why you apply for a student card before graduation.
\_ Have a bank account? They will probably grant you a card.
\_ That's how I got a credit card. I opened an account at
Bank Of America, and after a month or so of maintaining
the minimum balance, they offered me a visa card. I
like BofA's visa since you can check its balance and your
checking accounts balance online. ----ranga
\_ Try harder! Apply for a few more. My ex is a foreign
student from a third world dirt poor country, had no money
and was 19 yrs old. Even she was able to get a credit card
after a few tries.
\_ Idiot. if you're smart, you dont WANT a credit card. All
you need is the ability to pay for this electronically,
without costing you money. You get that by getting an
account at almost any bank, that offers a "debit card",
so any place that takes visa, you can pay for stuff.
Do that for a year or three and you will be buried in
offers for credit cards.
\_ Idiot. You can't buy anything bigger than a breadbox
without a good credit rating. You WANT a credit card.
\_ Idiot: ever try and buy a house/car, get a loan for said
if you have no credit history? Any fool who uses a debit
card to buy stuff online is BEGGING to have their money
stolen. At least with a Credit Card they AREN'T STEALING
YOUR MONEY, but some bank's. Provided you have a no annual
fee card and you make all your monthly payments, it costs
you nothing to have and use your card.
\_ I have done transactions with a debit card, and a
credit card. I have experienced fraud with both.
The credit card made me fill out a form, mail it in,
and wait a month. The debit card took my complaint over
the phone, and gave me my money back IMMEDIATELY, no hassle.
\_ i had debit card fraud and it took the bank about 3 weeks
to give me back my money, and I had to fil out forms,
call people back all the time etc. During that time my
bank account was compeltely cleaned out and I couldn't
even pay my rent without borrowing money. It sucked.
\_ I would mostly agree with this, but if someone ever gets
your account number with a debit card, they can clean out
your account which could lead to bounced checks and other
unpleasant things, but if this happens with a credit card,
it should be a little easier to handle.
\_ Just remember that you won't be liable for more than $50
if reported within one day or $500 if reported between
2-60 days. The bank would reverse the fees for you, and
so on. I agree it's more of a pain, but not impossible to
deal with. Also, most debit cards (and credit cards,
too!) have a daily maximum and maximum purchase limit
that the customer is not informed of without asking. --dim
\_ I thought it was $50 max, as long as your reported
it in a reasonable amt of time (30-60 days, or whenever
you get your bill).
\_ http://www.natlconsumersleague.org/debitbro.htm#whatif
\_ With credit cards, you also delay paying your expenditures,
and let your money earn more interest in the bank. Real
Men (tm) have self control over their spending. They don't
need no debit card to assist them. But if you are not a
Real Man (tm), don't pretend to be one, just get a debit
card.
\_ If !Real Man, shouldn't even get a debit card. Let
yer mom handle your money.
\_ Obviously, with the rate of bankruptcy in america,
this is not the home of Real Men.
\_ Geeze. Just use cash then.
\_ Another way to develop credit is to take a small loan
with the bank you use. They can see your worthiness from
your bank statement and job. Then, regularly make payments
on the loan to develop a credit history. NOTE: dont
pay it off too soon because it should take 6-12 months.
\_ Some credit card companies have special "student" cards. My first
two were discover and I think chase. Low credit limits, but just
use them a bunch and pay them back in full. Then you're golden!
\_ One thing you can do is get a "secured credit card". With a
secured card you give the card company X dollars and you get
a credit card with a limit of X dollars. It functions like
a credit card but if you don't pay your bills the company can
just keep your deposit. The advantage of a secured card over
a debit card is that you get the consumer protections of
credit cards. This means that if someone makes fradulent
charges you can get your money back, which is not he case
if you have a debit card. Citibank used to offer a secured
card back when I was a freshman at Berkeley. -emin
\_ Best is to get one of those free low-limit credit cards
when you're still in college. It's easier for college student
to get a cc than someone with a degree. After graduating,
sign up for magazine, respond to junk mail, fill out those
product-warranty cards (and write down a high salary), and then
you'll be swimming in credit card applications (like the
junk mail the other above poster has got). Do not do those
"secured credit cards", unless you already have BAD credit.
\_ Bah. Just get a "secured" card, which you are pretty much
guaranteed to get. Then buy stuff with it and pay it off
immediately. In 6 months, they will be be begging you to
often give you automatical qualification. UCB employees
take their regular card.
\_ Well, suit yourself, but it just seems weird on some
level to be giving someone money ahead of time for
a credit card. I agree with the other poster who said
get it thru your bank. Also, use Credit Unions as they
often give you automatic qualification. UCB employees
doing you a "favor" by giving it back to, along
and most high-tech and defense-contractor companies
offer CU memberships. Check it out. They often give
better interest rates too. A place that still pays
you for the use of your money. Screw BofA and WF --
they hold your money and then act like they are
doing you a "favor" by giving it back to you, along
with charging you monthly fees and atm fees as
they continue to also make interest off your money.
\_ Just get a student card and be done with it. I did it in
my senior year and have fantastic credit now. My first
two cards had shitty limits but they had no annual fees
and I only wanted a credit rating anyway. |
| 5/25 |
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| www.natlconsumersleague.org/debitbro.htm#whatif Shopping ATM transactions Getting cash Immediate banking By the year 2000, two-thirds of American households will have a debit card. Debit cards are expected to rival cash and checks as a form of payment. With the debit card, you are using your own money, not the issuer's money. Debit cards look like credit cards or ATM (automated teller machine) cards, but operate like cash or a personal check. Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. You can use your card anywhere merchants display your card's brand name or logo. They offer an alternative to carrying a checkbook or cash. Many banks are replacing their standard ATM cards with upgraded ATM cards with a debit feature. You may also receive in the mail what looks like a credit card when in fact it is a debit card. What is the difference between a debit card and a credit card? Debit cards allow you to spend only what is in your bank account. It is a quick transaction between the merchant and your personal bank account. Credit is money made available to you by a bank or other financial institution, like a loan. The amount the issuer allows you to use is determined by your credit history, income, debts, and ability to pay. You may use the credit with the understanding that you will repay the amount, plus interest if you do not pay in full each month. You will receive a monthly statement detailing your charges and payment requirements. What you should know about debit cards: * Obtaining a debit card is often easier than obtaining a credit card. But, as with credit cards, you may dispute unauthorized charges or other mistakes within 60 days. You should contact the card issuer if a problem cannot be resolved with the merchant. Two types of debit cards "On-line" debit cards: These cards usually are enhanced ATM (automated teller machine) cards which work the same as they would in an ATM transaction. It is an immediate electronic transfer of money from your bank account to the merchant's bank account. To access your account at a store terminal, you must punch in your personal identification number (PIN), as you would at an ATM. The system checks your account to see if it has enough money available to cover the transaction. The merchant's terminal reads your card, identifies it as a debit rather than a credit card, and creates a debit against your bank account. However, instead of debiting your account immediately, it stores the debit for processing later -- usually within 2-3 days. Most, but not all, transactions are verified to see if there are adequate funds. Instead, of using a PIN number, the customer must sign a receipt, as he or she would with a credit card. The "on-line" and "off-line" distinction may not matter to you unless: * your financial institution charges transaction or monthly fees. Seven tips for responsible use of debit cards * If your card is lost or stolen, report the loss immediately to your financial institution. A thief may get your name and debit card number from a receipt and order goods by mail or over the telephone. Your card does not have to be missing in order for it to be misused. Also, don't choose a PIN number that a smart thief could figure out, such as your phone number or birthday. Don't forget that your debit card may allow you to access money that you have set aside to cover a check which has not cleared your bank yet. While some issuers give customers separate cards for ATM and on-line transactions and another for off-line uses, others combine the two on one card. If your card handles both off-line and on-line debits and the store accepts both, you will choose the function when you use the card. If you choose "debit" on the merchant's terminal and "swipe" your card through, the transaction will be done on-line and you will be asked for your PIN. If you choose "credit" on the terminal and swipe your debit card through, the payment will be off-line and you will be asked to sign the sales slip. Just as your money may be stolen and your credit cards may be lost or fraudulently used, a debit card may be lost, stolen, or used without your knowledge. As a cardholder, you need to know the extent of your protection. Government regulations require debit card issuers to set a maximum liability of $50 if the debit card is reported lost or stolen within two days of discovery. Liability increases to $500 if the lost or stolen debit card is reported within 60 days. Neglect to notify the bank of the theft within 60 days after a bank statement is sent, and you could lose everything in your checking and overdraft accounts. Check with your financial institution about your liability. Many issuers offer consumers better protection than what is required in government regulations. One type of check card offers consumers "zero liability" in cases of fraud, theft, or other unauthorized card usage if reported by the cardholder within two business days after discovery. After the two-day period, the cardholder could be liable for a maximum of $50. Some other cards limit consumers' liability for fraudulent use of stolen debit cards to $50. Click here for information on 11 handling debit problems 12 ORDER DEBIT CARDS: BEYOND CASH & CHECKS For more information, to schedule an interview with NCL staff, or to contact NCL's Communications Department on this or any other release, call director of communications Holly Anderson at (202) 835-3323. |