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For me, credit cards are a tool that gives me a 1% discount on purchases, and protects me from fraud. I've made over $1,000 in cash back rewards and was refund

by Claudus 14y ago

For me, credit cards are a tool that gives me a 1% discount on purchases, and protects me from fraud. I've made over $1,000 in cash back rewards and was refunded $250 in charges from 2 different purchases that turned out to be fraudulent. I always pay my balance down to $0 at least once a month.

lostlogin 14y ago
Yeah, it's a great tool like that. And my banks IOS app lets me adjust my limit - so I put it down way low unless there is some big purchase about to happen. After 10ish years I got caught recently and had to pay interest, something like 19 cents. Used carefully and they can be a great way to get cheap banking.
dangrossman 14y ago
Your credit card didn't protect you from fraud, it exposed you to it. It's only because you paid for something by giving away a number that gives anyone arbitrary access to your bank that you had money stolen, had to watch your statements to notice it, and had to file a chargeback to get the money back. Hackers on the web can never reach into your wallet and take $250 -- this is a drawback of your credit card, not "protection" offered to you.
- coin 14y ago
  Not true. When making a purchase using a credit card, you are not giving "arbitrary access to your bank", rather you are giving access to your line of credit. There's a difference. In the case of fraud, the credit card company still has to collect from you. You can always not pay and dispute the charge. This is why I prefer credit cards over debit cards. In the case of a fraudulent debit transaction, my money is gone, and the burden to recover it is on me. In the card of a fraudulent credit card transaction, the bank is out the money, and the burden is on them to recover. Furthermore, federal law gives credit card holders protection to dispute charges over $50.
jjhooper 14y ago
Have you ever wondered where the money comes from to pay you the cash back? It's from charging higher merchant fees for rewards cards - so it's just a shell game really. If merchants can charge a higher excess for rewards cards, that will help level the playing field. It's a shame AmEx isn't included in the deal.

by Claudus 14y ago

lostlogin 14y ago

Yeah, it's a great tool like that. And my banks IOS app lets me adjust my limit - so I put it down way low unless there is some big purchase about to happen. After 10ish years I got caught recently and had to pay interest, something like 19 cents. Used carefully and they can be a great way to get cheap banking.

dangrossman 14y ago

Your credit card didn't protect you from fraud, it exposed you to it. It's only because you paid for something by giving away a number that gives anyone arbitrary access to your bank that you had money stolen, had to watch your statements to notice it, and had to file a chargeback to get the money back. Hackers on the web can never reach into your wallet and take $250 -- this is a drawback of your credit card, not "protection" offered to you.

coin 14y ago
Not true. When making a purchase using a credit card, you are not giving "arbitrary access to your bank", rather you are giving access to your line of credit. There's a difference. In the case of fraud, the credit card company still has to collect from you. You can always not pay and dispute the charge. This is why I prefer credit cards over debit cards. In the case of a fraudulent debit transaction, my money is gone, and the burden to recover it is on me. In the card of a fraudulent credit card transaction, the bank is out the money, and the burden is on them to recover. Furthermore, federal law gives credit card holders protection to dispute charges over $50.

jjhooper 14y ago

Have you ever wondered where the money comes from to pay you the cash back? It's from charging higher merchant fees for rewards cards - so it's just a shell game really. If merchants can charge a higher excess for rewards cards, that will help level the playing field. It's a shame AmEx isn't included in the deal.