Americans getting credit cards so young is so foreign to me. Here you only get a credit card either for business reasons or if you travel internationally where the European standards for debit cards don’t apply
The fraud prevention page for my mastercard debit card is the same page as the credit card page.
However, what I really recommend is you can get travel cards that you load with minimal money and are entirely disposable. You don’t need to only use them overseas. I have used them for online payments and in person payments and they’re disposable. That is I can get two more unique cards with unique numbers at any time. Minimising my personal risk since they can’t be used as ID and I limit the money on the card to just what’s needed. If it’s stolen skimmed or tried to be used fraudulently I might at most lose 50 dollars but I also probably know who within a margin of error skimmed it since I rotate them with new cards every so often.
I’m also in a place where losing 50 Australian dollars won’t financially bankrupt me if it was stolen. Because I’m pretty sure there is lots less fraud protection on those travel cards.
Anyway there’s alternatives for those who can’t or morally object to credit cards. Like me. Mine is I’m bad with money, I morally don’t trust myself since I went into 10k debt at 18.
If there’s fraud on a credit card, the bank fights to get their money back. If it’s fraud on a debit card, you fight for your money. Also if there’s fraud on your debit, that’s money out of your bank account that immediately affects you. With credit, it doesn’t at all. Debit has much weaker liability then credit, and also a time limit where you just lose all money if it’s not reported right away, with no limit to how much you can lose if you don’t get it back in time (usually 60 days). That trust that you won’t go in debt with credit cards is essentially why the credit system exists, to measure that. There’s nothing that has to do with morals, it’s just a payment method.
The bank is fighting for their money because as long as you report it in time they are legally required to refund all but a small amount. The refund for the fraudulent charges has nothing to do with the banks ability to get their money back.
What I was just advocating for, is taking ownership and control of the risk. If it’s your own entire bank account perhaps with a few thousand dollars, that risk is thousands of dollars. By segmenting that you can reduce it to dozens of dollars in which case, no matter the coin flip of bank fraud and money return, you’re never putting your eggs all in one basket.
I don’t think you understood what my comment said. Fraud is prevented with credit cards, and that risk isn’t there. It’s smarter to use credit over debit, any bank will tell you that.
Also like I said witt Debit, if there’s fraud then you’re out of that money until it’s returned. With credit, you will still be able to keep using it instead of potentially overdrafting/denied on a debit card. Or in the case of a prepaid travel card, you’d just run out, which would especially screw you over while traveling if that’s your only method of payment. On top of that, it’s easier to get scammed as a foreigner.
If you’re still interested in learning, search engines are your friend. I am not a financial advisor.
That’s kind of irrelevant when you have modern tech like mobile payments to safeguard you. But yeah, if you’re still using magnetic stripes, you’re kinda fucked.
You put normal monthly expenses on the credit card, then you immediately pay it off. Do this for a while and build your credit score. Use your higher credit score to get approved for loans/mortgages/bigger credit.
All credit is is a way to buy something expensive that you can’t afford right now. Figure out what you want to buy, then build the necessary credit to be approved for the big purchase.
Not having a credit card is giving up free money in cash back and rewards. Just be disciplined and it’s a net positive in every way, including security
I literally can withdrawal it. I can convert my points to cash at a 1:1 ratio, or redeem it for a flight and get 15% off the flight. Pretty tangible to me.
I use mine for cash back. I’ve been watching this finance channel on YouTube and the amount of Americans with thousands and thousands of credit card debt at sometimes over 30% interest is fucking insane.
Americans getting credit cards so young is so foreign to me. Here you only get a credit card either for business reasons or if you travel internationally where the European standards for debit cards don’t apply
Credit cards have much better fraud protection then debit
The fraud prevention page for my mastercard debit card is the same page as the credit card page.
However, what I really recommend is you can get travel cards that you load with minimal money and are entirely disposable. You don’t need to only use them overseas. I have used them for online payments and in person payments and they’re disposable. That is I can get two more unique cards with unique numbers at any time. Minimising my personal risk since they can’t be used as ID and I limit the money on the card to just what’s needed. If it’s stolen skimmed or tried to be used fraudulently I might at most lose 50 dollars but I also probably know who within a margin of error skimmed it since I rotate them with new cards every so often.
I’m also in a place where losing 50 Australian dollars won’t financially bankrupt me if it was stolen. Because I’m pretty sure there is lots less fraud protection on those travel cards.
Anyway there’s alternatives for those who can’t or morally object to credit cards. Like me. Mine is I’m bad with money, I morally don’t trust myself since I went into 10k debt at 18.
If there’s fraud on a credit card, the bank fights to get their money back. If it’s fraud on a debit card, you fight for your money. Also if there’s fraud on your debit, that’s money out of your bank account that immediately affects you. With credit, it doesn’t at all. Debit has much weaker liability then credit, and also a time limit where you just lose all money if it’s not reported right away, with no limit to how much you can lose if you don’t get it back in time (usually 60 days). That trust that you won’t go in debt with credit cards is essentially why the credit system exists, to measure that. There’s nothing that has to do with morals, it’s just a payment method.
The bank is fighting for their money because as long as you report it in time they are legally required to refund all but a small amount. The refund for the fraudulent charges has nothing to do with the banks ability to get their money back.
What I was just advocating for, is taking ownership and control of the risk. If it’s your own entire bank account perhaps with a few thousand dollars, that risk is thousands of dollars. By segmenting that you can reduce it to dozens of dollars in which case, no matter the coin flip of bank fraud and money return, you’re never putting your eggs all in one basket.
Risk management is more than good insurance.
I don’t think you understood what my comment said. Fraud is prevented with credit cards, and that risk isn’t there. It’s smarter to use credit over debit, any bank will tell you that.
Explain the risk of fraud with a travel card.
Feel free to keep using a travel card
Also like I said witt Debit, if there’s fraud then you’re out of that money until it’s returned. With credit, you will still be able to keep using it instead of potentially overdrafting/denied on a debit card. Or in the case of a prepaid travel card, you’d just run out, which would especially screw you over while traveling if that’s your only method of payment. On top of that, it’s easier to get scammed as a foreigner.
If you’re still interested in learning, search engines are your friend. I am not a financial advisor.
I’m trying to get you to validate your point.
Risk 1: identity theft. Doesn’t apply, travel cards aren’t a form of identity. If stolen they can not be used as identity.
Risk 2: money theft. Largely mitigated to minimal amounts trivial if not returned.
I get it, you don’t like this conversation, you’d rather I do my own research than discuss alternatives any further. I won’t reply after this.
That’s kind of irrelevant when you have modern tech like mobile payments to safeguard you. But yeah, if you’re still using magnetic stripes, you’re kinda fucked.
That’s not how fraud protection works lol, and it doesn’t have to do with the physical card
Yeah, tell me more about it, lol.
Reasons to get a credit card in 2019 -
To hire a car
Reasons to get a credit card in 2023 -
?
Totally alien concept to me
You put normal monthly expenses on the credit card, then you immediately pay it off. Do this for a while and build your credit score. Use your higher credit score to get approved for loans/mortgages/bigger credit.
All credit is is a way to buy something expensive that you can’t afford right now. Figure out what you want to buy, then build the necessary credit to be approved for the big purchase.
Heh, no credit agencies in my country, no credit score.
When you pay with credit card it’s bank’s money. When paying with debit it’s yours.
I pay everything on the internet with credit card. It’s safer.
Not having a credit card is giving up free money in cash back and rewards. Just be disciplined and it’s a net positive in every way, including security
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Of course you can if it is a cash back.
I literally can withdrawal it. I can convert my points to cash at a 1:1 ratio, or redeem it for a flight and get 15% off the flight. Pretty tangible to me.
You can withdraw it. It’s called a cash advance. It’s cash that immediately accrues interest on your credit card balance.
Maertro crowd isn’t so lucky. And rental companies don’t advertise this.
I use mine for cash back. I’ve been watching this finance channel on YouTube and the amount of Americans with thousands and thousands of credit card debt at sometimes over 30% interest is fucking insane.
Juicy cashbacks with AmEx.
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