FACEBOOK Posted July 25, 2012 Share Posted July 25, 2012 I can't agree. There is something wrong with a system that requires a completely financially sound individual to obfuscate their financial prudence by manufacturing a history of debts. There are ways round it without playing this silly game, and perfectly adequate alternatives, for example if you needed a credit card to use abroad you could just go pre-pay. Whether it's right or wrong is irrelevant, the rules are simple and they are set out. Play this very easy game correctly and prosper. Why make life difficult when it doesn't have to be. I must be missing something and would be very interested in the perfectly adequate alternative to property ownership and investment / development without borrowing and the ability to raise finance quickly to take advantage of exciting investment opportunities. After all, that's really the only difference between the rich and the poor, the ability to lend. Link to comment Share on other sites More sharing options...
I1L2T3 Posted July 25, 2012 Share Posted July 25, 2012 IF you pre-paid then it's hardly a credit card is it though? The institution want to know that you are good at running a revolving line of credit for a credit card - it's up to you to demonstrate that. IF you have no credit history that is difficult to do but there are cards out there that will be issued - usually with a low limit and a highish rate of interest. Get one, set up a DD to cover the full amount each month so you never get hit with interest and make some small purchases on it. Six to nine months later and you will be offered much better cards. As you said though, a credit card is not a good idea and I'd only ever recommend them for one thing - buying goods over the internet. Apart from that as you say they are a bit of a mugs game. What a good credit score is needed for though, and why you should cultivate it is a mortgage. Othewise you get really bad rates of interest..:-( Is it correct that you need a credit card to ensure protection while shopping online? I'd urge people to look into the protection generally provided under the Visa umbrella for example, and as far as I know this applies to Visa debit and Visa prepaid cards as well, e.g. for chargebacks for faulty goods, no shows etc... Not financial advice, just a prod to look at the other options before committing to interest rates of between 9% and 29% for something that might not be needed after all. Plenty of sites on the internet to research this. Link to comment Share on other sites More sharing options...
Obelix Posted July 25, 2012 Share Posted July 25, 2012 With credit card you are spending the card issuers money - with a debit card you spend your own. So say you buy something from Plunder and Flee inc, with a debit card and they never ship it. Tough luck. You can't get VISA to charge back if they have emptied their account and fled. If you pay by credit card and it never arrives, the card issuer is jointly and severally liable. So you just tell them you are not paying, it never arrived, and that's the end of it. (with a little paperwork naturally). Someone empties your bank account after cloning your debit card? It's up to you to prove you didn;'t give your pin out. Good luck (incidentally never EVER have a chip and pin card - insist on chip and signature. Tell them you are dyslexic if you have to). Someone runs up a £10000 credit card bill on your card? Your card issuer has to prove it was you, not you prove it wasn't. If the money was pulled from a cash machine in Kuala Lumpa, and you can prove you were at the office at the time then the card issuer stands the loss... Link to comment Share on other sites More sharing options...
I1L2T3 Posted July 25, 2012 Share Posted July 25, 2012 Whether it's right or wrong is irrelevant, the rules are simple and they are set out. Play this very easy game correctly and prosper. Why make life difficult when it doesn't have to be. I must be missing something and would be very interested in the perfectly adequate alternative to property ownership and investment / development without borrowing and the ability to raise finance quickly to take advantage of exciting investment opportunities. After all, that's really the only difference between the rich and the poor, the ability to lend. Where are these simple rules set out? Link to comment Share on other sites More sharing options...
Obelix Posted July 25, 2012 Share Posted July 25, 2012 Where are these simple rules set out? I was thinking the same thing myself... if they were that easy we'd all be sipping Pina Colada on our luxury yacht.... Link to comment Share on other sites More sharing options...
I1L2T3 Posted July 25, 2012 Share Posted July 25, 2012 With credit card you are spending the card issuers money - with a debit card you spend your own. So say you buy something from Plunder and Flee inc, with a debit card and they never ship it. Tough luck. You can't get VISA to charge back if they have emptied their account and fled. If you pay by credit card and it never arrives, the card issuer is jointly and severally liable. So you just tell them you are not paying, it never arrived, and that's the end of it. (with a little paperwork naturally). Someone empties your bank account after cloning your debit card? It's up to you to prove you didn;'t give your pin out. Good luck (incidentally never EVER have a chip and pin card - insist on chip and signature. Tell them you are dyslexic if you have to). Someone runs up a £10000 credit card bill on your card? Your card issuer has to prove it was you, not you prove it wasn't. If the money was pulled from a cash machine in Kuala Lumpa, and you can prove you were at the office at the time then the card issuer stands the loss... I think perhaps you may be a bit paranoid. Banks are generally very good at dealing with the scenarios you describe, and tend not to quibble. I'm not commenting any further because this is straying into financial advice. I urge everybody to do their own research. Link to comment Share on other sites More sharing options...
NorthernStar Posted July 26, 2012 Share Posted July 26, 2012 "A bank is a place that will lend you money if you can prove that you don't need it." "A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain." Link to comment Share on other sites More sharing options...
southcoast Posted July 26, 2012 Author Share Posted July 26, 2012 With credit card you are spending the card issuers money - with a debit card you spend your own. So say you buy something from Plunder and Flee inc, with a debit card and they never ship it. Tough luck. You can't get VISA to charge back if they have emptied their account and fled. If you pay by credit card and it never arrives, the card issuer is jointly and severally liable. So you just tell them you are not paying, it never arrived, and that's the end of it. (with a little paperwork naturally). Someone empties your bank account after cloning your debit card? It's up to you to prove you didn;'t give your pin out. Good luck (incidentally never EVER have a chip and pin card - insist on chip and signature. Tell them you are dyslexic if you have to). Someone runs up a £10000 credit card bill on your card? Your card issuer has to prove it was you, not you prove it wasn't. If the money was pulled from a cash machine in Kuala Lumpa, and you can prove you were at the office at the time then the card issuer stands the loss... Exactly,that is what the bank told me and because I shop on line quite a bit I wanted the protection that a credit card has. Link to comment Share on other sites More sharing options...
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