Never use your debit/check card except to withdraw cash. when I was growing up and all through college, all of my financial advise from my parents was always given to me after the fact. If I didn't pay a bill on time I would get "of course you have to pay bills on time!", if I spent all my money to impress a girl I got "Never try to impress a girl with your money, they will be impressed without it and if they aren't then you saved yourself a life of headaches"... So I am saying this to everyone before they get screwed. Check cards are direct links into your bank account. If anyone gets the number, they have a hose connected to the faucet and can turn it on and empty it out at any time. Instead, use a credit card for all purchases and pay it off at the end of each month. Its work, but its worth it. This way if someone gets your CC number, they can only run up your credit, but your money will always be safe. I just got emptied. :wtc: And I know that I can get the money back, but I am totally broke for the week its going to take to sort it out, and thats the rub. If it had been a credit card, it would have been no big deal, just a maxed out credit card - whoopiededoo.
Yep, that's the reason I refuse to use a debit card in such a way... had it happen many years ago and I switched to using CCs exclusively. It gets really ugly to sort out too, as you're finding out. Unfortunately a lot of people are conditioned to believe credit card == evil (thanks to Dave Ramsey and the likes) so they get trapped in this stuff.
I agree with you completely. I exclusively use credit cards. But I use them like debit cards. I never charge more than I can pay off every month. I switched before I had any bad experience. Now to add some advice to this: If you are sending a check out in the mail, always drop it off at the post office. I did get burned last year. Someone broke into my apartment complex's outgoing mailbox and got my check. Then they made false checks and charged a decent amount of money at target. Everything was sorted out by my bank but not without inconvenience. I had to close my account and start a new one. This meant new checks and updating my account info wherever it was needed. Since I noticed the fraud on a Friday, the new account would be opened earliest by Monday. Hence I had to drop everything and run to an ATM and get enough cash to last me through the weekend.
That's just Unamerican, dude. OK, I'll add some advice that might help save somebody a buck. You do _not_ have to carry a balance on a credit card to 'build credit'. That is one of the most oft-reported myths about CCs, and I can't imagine how many dollars have been thrown away based on people following it. You also don't have to 'take out a small loan' or get a car loan or anything to get sufficient credit... just use a CC or two and pay them off in full every month.
Good advice in this thread. I use my debit card pretty exclusively but since I make tips at work I've normally got cash for most smaller purchases. I really need to get a credit card now that I'm older and need to start building credit. Moose, if you've had a steady balance in a checking account for a while, does that serve to build positive credit?
Nope, unfortunately not. Neither checking accounts nor most/all utilities bills affect your credit report in the least UNLESS you are late enough that it goes to collections... (FWIW, checking accounts are reported via Chex Systems which is used by banks to figure out whether you've bounced stuff or left accounts negative in the past, amongst other things.) Best way to build credit is to get a decent CC and just charge regular purchases while paying it off in full. Simple as that.
here's an easy way to get decent credit with a CC. buy a tank of gas or soemthing each month, doesnt have to be a lot or anythign major. that can run you anywhere between 20-40 bucks roughly. pay it off at the end of the month and that will help.
And make sure it's a rewards card! I get 5% on gas, 5% on drugstore stuff, often 5% on education, 5% on groceries, and 1% or more everywhere else... why not?