[dorlomin]

http://news.bbc.co.uk/1/hi/business/7222336.stm

Alot of high risk customers are being cancelled but also it seems those who do not pay interest on credit by paying cards back before interest comes due.

[dissident]

Greed is what got the banks into the mess and greed is what is going to compound the pain. Clearly it is not enough for the banksters to collect over 2% per transaction from merchants. One has to conclude that credit cards are a debt scam.

[Twilight]

Agreed, they are cutting away their customer base from both ends - defaulters-to-be, unprofitable borrowers and dormant accounts. I think they have an 'ideal' profitable sweet spot in mind, and want to keep the borrowers that fit the profile. Expect more of this.

[Tyler_JC]

$this->bbcode_second_pass_quote('dorlomin', 'h')ttp://news.bbc.co.uk/1/hi/business/7222336.stm

Alot of high risk customers are being cancelled but also it seems those who do not pay interest on credit by paying cards back before interest comes due.

[dorlomin]

It allows you buy things at the part of the month when your finances are getting a bit low. Some people can be rational and well behaved and still play the system to there advantage.

[auscanman]

Tyler, In Canada, and probably a few other places, most bank accounts come with a limited number of transactions per month. If you used a debit card every time you didn't have the cash on hand to pay for an item, you'd easily exceed your monthly transaction limit, and get penalized. Using a credit card and paying off the balance at the end of the month is therefore preferable to using a debit card.

What basis can there possibly be for cutting off credit card customers who pay off their balance at the end of each month? Surely credit rating has to be the primary concern, and with those people presumably having solid credit ratings, I fail to see what basis there can be for cancelling them. If they cancelled me, I'd start a class action.

If we do ever face the cashless society predicted by some credit card executives, then this article reveals just how frighteningly powerful credit card companies will be. Financial irresponsibility could become necessary to get by!

[Twilight]

$this->bbcode_second_pass_quote('auscanman', 'S')urely credit rating has to be the primary concern, and with those people presumably having solid credit ratings, I fail to see what basis there can be for cancelling them. If they cancelled me, I'd start a class action.

[KrellEnergySource]

$this->bbcode_second_pass_quote('Tyler_JC', '[')
And then why are these people using credit cards in the first place?

If you always pay your balance off every month, it seems to me that a debit card might make more sense.

Actually, a debit card almost always makes more sense.

[sylviah]

I pay off my balance every month. I have two credit cards, mainly to build my positive credit history. If you don't have any credit history at all, you can't get approved to rent an apartment (at least where I live), you can't buy a house, you can't rent a car, can't get a cellphone plan... And if you don't have enough "revolving lines of credit" (I seem to remember that you have to have 3 open lines of credit to build positive credit, and that would include any student loans, car loans, mortgages, etc), anytime anyone runs a credit check on you, nothing will turn up.

I've heard of banks cancelling people's credit cards because they pay off their balance every month before. I think it's not that unusual. So every once in a while, I don't pay the full amount, just by a little bit, just to not get put on that list.

Hey, I need a rental car every once in a while, what can I say.

I would be happy if the whole credit check system tanked. It's a pain in the butt, really, even for someone like me. One of the damn credit bureaus doesn't have my SS number on file, for some unfathomable reason, so every once in a while I'll get turned down for a cell phone plan renewal or something, and the store clerk will just give me a funny look and say, hunh, it says here you don't exist....

[PopeGideon]

Some guy doesn't see why a person would use a Credit card rather than a debit card if they never carry a balance?

I'd say that's extremely naive.

I think it's a very bad decision to get a Visa/MC type card that is attached to your checking account.

Let's suppose you lose your debit/credit card and it gets used for 4k worth of purchases.

With the Debit card, the money is out of your account until they decide to put it back in, and then the issue is whether you get to keep your money. If it ever comes down to an issue, you don't have the money and you'll have to sue to get it back.

On the other hand, if it's on a CC, tell em to screw off, you didn't make the purchases, and they can sue you if they don't like it (they won't). Meanwhile, you have the money.


Other issues include - any accidental overcharges come out of your checking account - search on line and you'll find horror stories about folks being overdrawn because of crap like that. Then there's all sorts of hidden fees. If you overdraw using your debit card, then any fees for bounced checks and stuff are your responsibility, even if it was no mistake on your part.

Finally, a little common sense financing 101.

Option A - directly pay with your own money at the time of purchase.

Option B - pay with somebody else's money at the time of purchase, and then pay them back at the end of the month with no interest because your neighbors, the suckers, are paying 18% on the stuff they are rolling over.

The intelligent question is, "how unsophisticated do you have to be to even consider using a debit card when you can use a credit card for free?"

Anybody want to list even a single advantage to using a debit card?

[PopeGideon]

$this->bbcode_second_pass_quote('', 'I') pay off my balance every month. I have two credit cards, mainly to build my positive credit history.

[Ferretlover]

You've forgotten that insurance companies use your credit rating as part or all of the indicators that determine your insurance.
Another scam...

[thor]

$this->bbcode_second_pass_quote('PopeGideon', ' ') Let's suppose you lose your debit/credit card and it gets used for 4k worth of purchases.

[ki11ercane]

$this->bbcode_second_pass_quote('Tyler_JC', '')$this->bbcode_second_pass_quote('dorlomin', 'h')ttp://news.bbc.co.uk/1/hi/business/7222336.stm

Alot of high risk customers are being cancelled but also it seems those who do not pay interest on credit by paying cards back before interest comes due.

[Twilight]

Why use a credit card? Because it's a shield.

I bought some train tickets once. They didn't arrive on time. One letter to the credit card company later, and it's their problem.

I got charged a hotel bill once by mistake. No fraud, it was a billing error. Again, a call to the credit card company, and it's their problem.

Problems involving debit cards involve a lot more legwork, and the damage can be greater. I keep a credit card with a tiny limit. Any big screwup, and it is flagged and stopped as unusual.

[cube]

$this->bbcode_second_pass_quote('Twilight', 'W')hy use a credit card? Because it's a shield.

I bought some train tickets once. They didn't arrive on time. One letter to the credit card company later, and it's their problem.

I got charged a hotel bill once by mistake. No fraud, it was a billing error. Again, a call to the credit card company, and it's their problem.

[steam_cannon]

$this->bbcode_second_pass_quote('auscanman', 'I')f we do ever face the cashless society predicted by some credit card executives, then this article reveals just how frighteningly powerful credit card companies will be. Financial irresponsibility could become necessary to get by!

[cube]

$this->bbcode_second_pass_quote('steam_cannon', '')$this->bbcode_second_pass_quote('auscanman', 'I')f we do ever face the cashless society predicted by some credit card executives, then this article reveals just how frighteningly powerful credit card companies will be. Financial irresponsibility could become necessary to get by!

[katkinkate]

$this->bbcode_second_pass_quote('auscanman', 'T')yler, In Canada, and probably a few other places, most bank accounts come with a limited number of transactions per month. If you used a debit card every time you didn't have the cash on hand to pay for an item, you'd easily exceed your monthly transaction limit, and get penalized. Using a credit card and paying off the balance at the end of the month is therefore preferable to using a debit card.

......

If we do ever face the cashless society predicted by some credit card executives, then this article reveals just how frighteningly powerful credit card companies will be. Financial irresponsibility could become necessary to get by!

[PopeGideon]

Twighlight - excellent point about the dispute. I hadn't even thought about that.

I fought two transactions last year. No problem either one.

Try charging 2k to your debit card and then contesting the purchase.

With a CC, you get a 2k credit to your account until it's resolved. And even then, you don't have to pay it if you want to fight your CC company.

What happens with a debit card when you want to fight the 2k charge?

Does the 2k get put right into your account for your use immediately?

Can you drain the account to zero and close it and tell the bank, "if I lose on this contest, I'll send you the money?"

Not to be rude, but I can't help it, I always equated debit cards with suckers who were either too stupid or too un-credit worthy to use credit cards.

With regard to the insurance, I can't imagine that an insurance company wouldn't give you a good rate if you paid up front.

When I recently opened a checking account, I had to pay an extra fee to get an ATM-only card. The guy kept repeating, "but the debit card is free."

What a game for suckers.