PBS Show on Credit Cards

Dargo · Nov 25, 2004

OkeeDon, you may want to make sure that you have the same protection with your debit card as a conventional credit card. My wife opened a debit card a few years ago. As on my statements, I also go over hers with a fine tooth comb. When I came upon a charge that was not valid, I called the bank. Since it was a debit card and the money was taken directly out of her account, there was no recourse for her. She was stuck paying for the bogus charge, they already had her money. We obviously dropped that card as well

With my "conventional" credit cards, I've never had a single problem getting rid of bogus or incorrect charges. I make a call, and they are immediately reversed. You may want to make sure that your debit card works the same way. I'm told that some do, but my wife's didn't. If I cannot deny the charge and get immediate credit for the charge, I won't use the service.

With my business credit card, I basically get double frequent flyer miles. I get the miles with the airline, and I get miles from the credit card company with which I paid for the ticket. Because of the business use, I generally get a few hundred thousand miles a year total. That translates into "free" flights for my family at least a couple times per year. Heck, we did a long weekend in Maui last month on the miles. Some of the miles paid for the flights, and some of the miles paid for the hotel expenses. It's hard to beat 5 days in Maui for a total cost of a couple hundred bucks or so that we spent for food, gifts, and surf lessons. Don't ask on the latter. /forums/images/graemlins/wink.gif If you can ski on it (snow or water), or surf it, I've done it. Not my wife. The lessons were worth the expense just so I could record them! /forums/images/graemlins/laugh.gif

hazmat · Nov 25, 2004

"Deadbeat" and proud of it /forums/images/graemlins/tongue.gif

The credit card company is making money off of every transaction. Something in the neighborhood of 2%.

Both of my credit cards have "rewards". I charge everything, and reap the rewards - free skiing, free movies, new VCR. The better rewards cards give you more than 1% in value.

Bob_Skurka · Nov 25, 2004

Are you related to my little sister too? 

Pete, I had no idea we were related, but it is always nice to meet a "long lost" relative!

Sad story you have to tell, and unfortunately it is all to common. People get caught up in the concept of "keeping up with the Jones" and put themselves into debt.

Let me turn it around a bit and tell how I afforded a big house in the country at the tender age of 35. The lovely Mrs_Bob and I were living in a small house I purchased in a modest suburb. I had a moderately good income, the lovely Mrs_Bob was finishing graduate school & worked part time, but we saved her entire part-time income and lived off of my income (we decided to put of having children for a few years so that made it easier).

We decided we wanted to live in the country so we bought land . . . paid cash because we had been saving her entire income for about 5 years. Then we started looking at house plans, found one, took it to an architect and had it drawn to our specs. We knew it would be several more years before we were ready to move (health issues with my parents, etc), but we wanted the plans so we could work ahead.

After the lovely Mrs_Bob finished graduate school we had a bundle of student loans so when the lovely Mrs_Bob got a "real" job, we lived only on my income and paid off her student loans at double the rate to get them out of our way, we saved the rest of her income for the future house.

With plans in hand, we knew EXACTLY how many light fixtures we needed, we knew EXACTLY how much marble flooring we wanted, and even how many outlets, faucets, etc. So we started buying those things. We filled our garage with toilets, pallets of tile, marble, switch plate covers, appliances and other fixtures. If we could buy it, and pay for it with cash, we bought it and stored it.

When it was time to build, we had the land and all the fixtures, appliances and many other parts already paid for. That left us to finance labor, lumber, drywall, shingles and the foundation! When we built my older brother (who is financially brilliant) was amazed at the size of the foundation hole and as he and his wife were moving into a new house just months before I was, he wrongly assumed my mortgage would be double his. The reality was my home is double the size of his, my mortgage payment was lower than his. At 35 years old, the lovely Mrs_Bob & I moved into a fairly large house and had over 65% EQUITY.

It took a lot of dicipline and planning. And life is pretty easy for us now. Financially I am in a better place than I was, Mrs_Bob left her banking career and took a 70% pay cut to become a high school teacher & mentor . . . but ONE THING DID NOT CHANGE, we still live on ONE INCOME and we still SAVE ONE INCOME. People seem to envy what we have. What they might envy more is what we don't have. We don't have car payments. We don't have debts.

So if the credit card companies want to call me a DEADBEAT then I will wear their name on a big banner! I am proud to be a credit card deadbeat. And that gives me the ability to use up the airline miles as I see fit and not feel guilty about it!

DocHeb · Nov 25, 2004

Another deadbeat here -

I use the credit card for everything. I recently went to buy some pilings for my dock. They need to be ordered and shipped in. The owner said I could pay cash, or use a credit card and be charged an additional 2%. I gladly paid the 2%. I look on that 2% charge as insurance.

Once my wife was offered a similiar discount (and took the discount) to order $2500 worth of furniture with a check rather than a card. A week later there was a large "CLOSED" sign up as the place went out of business. Of course our check had already cleared. The furniture store owner knew he was closing, yet still took our cash. With a card, we could have reversed the charges and wouldn't have been scammed.

Dargo · Nov 25, 2004

bird, part of what I do is to train finance managers at auto dealerships how to get people with less than perfect credit financed. Honestly, there some who are good people who have come upon bad times. Some are just bad credit risks, or what are known in the business as credit criminals.

It is a comlicated and closely guarded secret as to exactly how the credit score is derived. I have a few of the formulas. Some factors that can lower your credit score are somewhat not what you'd expect. For example, if you are buying a new car and you shop around for the best rate with several banks; you lower your credit score. Too many inquiries within a 12 month period. If you have 3 or more inquiries within a 12 month period, it reduces your score.

You really have to watch this at some dealerships. They use what they call a 5 liner. It goes like this; you are told that you must fill out a particular form and give them a copy of your drivers license to take a test drive. Sounds reasonable enough. However, on some of the forms, there is language that gives them the authority to do a credit check on you. That way, they know if they have a "buyer" or not by the time you return from the test drive. In most states this is illegal because they also use this information to decide how to structure their deal. Example; if you have a low credit score, you will not get as good of a price. They figure that you will likely take whatever you can if they can get you financed. If you have a high score, you are more likely to walk away if you do not get a good price. If you ever have someone ask you to fill out a form before you can test drive a car or a tractor and it includes the provision for them to do a credit check, don't sign it. Leave.

It doesn't count against your score if you request a copy for yourself, that inquiry is not shown as a "request for credit", which lowers your score. Having a low debt to net helps. That is a low debt load compared to your available net income. Obviously missing payments or being late on payments lowers your score. Also, not having applied for any credit within a 7 year period lowers your score. Go figure! I'm constantly surprised when people are shocked because they cannot get a loan because they just file bankruptcy. It is not uncommon for a bankruptcy attorney to tell someone that they can get credit right away after filing bankruptcy. Afterall, that attorney is trying to "sell" you bankruptcy so he can collect his fee.

Anyway, I'm with you. I've been training in this business for 20 years, and a "deadbeat" has always been someone who has bad credit. I guess the credit card industry has their own terminology. /forums/images/graemlins/confused.gif

RobertN · Nov 25, 2004

The CC companies do not like it when you pay them off monthly. It is bad for thier profits.

They make a small amount by a fee on each charge. That charge usually goes to the store. That's why some places have minimum purchase amounts for a Charge. They get charge 50 cents or a dollar to when they swipe your card.

The CC companies make thier big bucks on the interest charged on revolving debt. If you pay it off every month, they do not make interest money off your account.

Bird · Nov 25, 2004

One of our relatives and his wife both retired this year. They had both had high paying jobs and now have what I'd consider to be monstrous pensions. So they built a big new home this year on 2 acres, and she mentioned recently that when they went to finance the new home, they ran into a problem; too many credit cards with high credit limits; even though they owed nothing on those credit cards, mortgage companies said that since that credit was available, it would be possible to get into trouble, so they counted the credit limit on those cards as being potential debt which hurt their credit rating.

ronjhall · Nov 25, 2004

"Deadbeat" and proud of it /forums/images/graemlins/tongue.gif
Ditto:
I use a charge card for almost everything. Unless I am offered a discount for not using my charge card. There was a time when I would not use my card for something less than $10. Now I use it for stuff even less that $5. If a merchant says they will not take my card because the charge is to small it is the last time I use that merchant. It's nice to live in a area where there are choices.

Henro · Nov 25, 2004

I hate to do it, but I will give the credit card company we deal with (or did in the past...)a little credit... /forums/images/graemlins/blush.gif

Once or twice over the last 20 years we got the payment there late. It was either because we forgot or the statement got lost in the mail. Regardless, I called and said we NEVER are late on payments, check the records and so on, and I don't like paying late fees, or any fees for that matter.

Both times they took the late fee or interest charge, or whatever they called it off the bill...I guess they could have just as easily said tough, pay up.

Like everyone else I use them as a convenience and don't mind getting a little cash back either. It does add up. Would make no sense though if we paid any interest at those high rates though, which don't and won't ever...the cards would be cancelled first...

btolle · Nov 25, 2004

( ------------<SNIPPED>---------------
when they went to finance the new home, they ran into a problem; too many credit cards with high credit limits; even though they owed nothing on those credit cards, mortgage ------------<SNIPPED>---------------
)

I closed several accounts a few years ago. If you want to close an account you have to send them a letter and tell them to close it. Just cutting up the card does not close the account, it will show up as open for years and the available credit will count against you.

That reminds me, I have a couple of accounts I haven't used in a couple of years I need to close.......

Bill Tolle