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Yes, you can use a debit card that is linked to your checking account. Never max your credit card or exceed the limit because once you do you will be slapped with the OL (Over Limit) fees. If you have a debit card and have the enough funds to cover your purchase, then I would recommend that instead of using the credit card, and best part is that since the amount is deducted from your checking account, its paid for. No bills, no hassles.
NOOOOOOOOO. Don't ever use your debit card to pay for anything. Here is what could happen:
1. You hand your debit card and the person enters the wrong amount. You notice and tell them. They then issue a credit in that amount. Then they charge the correct amount. So there are 2 charges and 1 credit. The 2 charges post on day 1 and the credit the next day. During that time you can have checks bounce. Then there would really be a hassle.
2. You card number get stolen and charges added. Well while you straighten all that out you are out your money. Hopefully you get it back and don't have any checks bounce.
Better use your credit card and set it up so that the balance is paid off automatically from your checking account on the due date. That way you can dispute any charges before they are paid.
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Originally Posted by Nor'Eastah
And what is so wrong with paying from your already-accumulated cash? Why is there so much emphasis on building up "credit" (which is really "debt", not "credit") and worrying about FICO scores? At 19, you should be looking forward to a life filled with education, sports, enjoyable work, meeting girls, and having fun. NOT being saddled with debt!
My best advice to a young man: if you can pay off what little (I hope it's "little") debt you have accumulated so far in your young life, do so. Cut up the stupid credit cards. Don't go near a bank for anything but checking (there are better ways for saving). Don't get mixed up in this business. You are still in your teens. Those sharks will eat you alive; the name of their game is to get you on a debt and payment treadmill for life. Hop off now, while you still can, and thumb your nose at the banksters. They are nothing but crud and scum.
Probably nobody else will tell you this. This is the voice of experience.
I get cash back from my credit card. I never pay them any interest or late fees. I do not have to look for ATMs or worry how much money I have in my pocket. To me credit cards are great.
off topic. i also transferred from allstate to statefarm car insurance. all state gave me an outstanding bill of $29.20. i called them and told them i dont understand it. they told me their manager will call me to explain further. no calls. and now.. i received a collection notice from them for the same amount. will this affect my good credit history coz i dont plan to pay $29.20. i believe i dont owe them anything. i was in autopay payment with allstate.
Take care of it or it will cost you. We had an issue with our best buy card over a $29 fee which they inflated to $240. We still believe we are right. Well after we moved we got a higher car insurance rate because of it. It didn't hurt us to buy a home because is such a small amount. Basically we have paid for it more that it was ever worth.
There two ways to take care of it.
1) Call allstate and try to convince them you don't owe it.
2) Call collection agency and negotiate a payoff. I used to work for a collection agency and they will always negotiate with you. Putting it on your credit is part of the negotiation. Read the letter they send you it probably says "if you don't pay we will put it on your record". You say to them I'll pay but don't put in my record.
To the OP don't worry so much about scores. Just make sure you are not paying money for nothing (i.e. interest on purchases or late fees). To buy a house what matters is that you can pay for it and have a history of being responsible with money. Part of the big mess we are in now is the heavy reliance on scores in the lending industry. Things have changed an a good down payment is more important.
Well, I believe that it is a waste of money by buying my first box of checks and not using it unless I just look at them for fun!
It will be a bigger waste of money to pay for stamps to use them. What is it now 42 cents? Occasionally you will come to a situation that requires you to use checks, save them for then. I pay for yard maintenance with a check.
NOOOOOOOOO. Don't ever use your debit card to pay for anything. Here is what could happen:
1. You hand your debit card and the person enters the wrong amount. You notice and tell them. They then issue a credit in that amount. Then they charge the correct amount. So there are 2 charges and 1 credit. The 2 charges post on day 1 and the credit the next day. During that time you can have checks bounce. Then there would really be a hassle.
2. You card number get stolen and charges added. Well while you straighten all that out you are out your money. Hopefully you get it back and don't have any checks bounce.
Better use your credit card and set it up so that the balance is paid off automatically from your checking account on the due date. That way you can dispute any charges before they are paid.
I've never had a problem with my debit card or known anyone else who has. I use it for everything and keep a close watch on my account.
I got my credit card at 19 because I was told that I needed to "build credit" So I racked up bills to build the credit, and ended up 5,500 dollars in debt. Fortunately I'll have it paid off by October. But all that money could have gone to other better things, and I would have saved myself a lot of anxiety if I never got the card in the first place.
If someone tells you you should get a credit card, run for the hills!!! There are other ways to build credit without getting into debt, you just have to look into alternatives. I only know of one person who has a credit card and can handle it.
I recommend you look into Dave Ramsey. he's written several books and has his own show. And he has excellent advice.
Because of the potential issues with both debit and credit cards (either mispostings, delayed credits, identity theft, etc) I do have one credit card with a low balance that I use ONLY for internet and phone transactions. That way if there is an issue with identity theft or comprimise from a card-not-present situation then its limited to that one card and doesn't directly impact my primary card or checking account. I also monitor that one credit card extra closely for any unauthorized transactions.
I've never had a problem with my debit card or known anyone else who has. I use it for everything and keep a close watch on my account.
I got my credit card at 19 because I was told that I needed to "build credit" So I racked up bills to build the credit, and ended up 5,500 dollars in debt. Fortunately I'll have it paid off by October. But all that money could have gone to other better things, and I would have saved myself a lot of anxiety if I never got the card in the first place.
If someone tells you you should get a credit card, run for the hills!!! There are other ways to build credit without getting into debt, you just have to look into alternatives. I only know of one person who has a credit card and can handle it.
I recommend you look into Dave Ramsey. he's written several books and has his own show. And he has excellent advice.
Debt is financial slavery. It's not worth it
Yeah anyone that can't handle a credit card shouldn't have one. Credit card does not equal debt. I have them and the only debt I have is mortgage and car payment.
Why can't someone learn to handle credit cards?. Why is it so difficult?. People don't write checks for money the don't have why do they charge things they can't pay?. I just don't get it.
Some people can't handle credit card just based on the ideology of buy now and pay later! So, there are people who just use a credit card to get whatever they want because they want it now and it is convenience for them! People would think oh well, I can worry about paying off my balance later!
Here is an update:Well, I found out that somehow my credit card limit went back to what it used to which was $500.00 USD! I guess that someone working at the bank mistakenly increase my credit card limit! I am $7.75 USD in debt (in theory) because it hasn't show up as my credit card balance online yet!
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