Credit cards and banks (Warning, rant. Also a question.)

[katie ta achoo]

I just paid my CC bill. It was a little over $1000. I bought a mattress, had to fix my car, but those two my mom cut me a check for and re-imbursed me. The card usually doesn't have this much charged to it. Usually I'm at about $300 a month, this was an anomaly.

I authorized the payment in whole last night electronically.
A few days ago (on this month's NEW billing cycle), I bought a Wii, and it shows up today. "Whatever, I already paid the bill, so I won't be without money for a few days, it's ok."
WRONG.
I tried to buy some iTunes today and my CC kept getting turned down. Finally, I log in to the online credit card site to see what the heck is wrong.
Apparently, I'm $14 under my limit.
The payment I authorized last night hasn't gone through, still. In the past when I've paid, it takes them 12 hours, TOPS to get their money.

So, now I'm effectively without money for the next few days until they take their sweet time finishing up the wire transfer.

It's just the dang credit limit! I have the money in my bank account, VISA is just being dumb. If I need to buy anything, I get to go to an ATM now. I hate carrying cash.. it makes me feel so vulnerable. And it takes up too much physical space! I'd rather have ONE CC than a bundle of bills that take up room. And don't get me started on Change!!

I charged about $20 today and they haven't posted yet. What happens when I'm $6 over my limit? My card wasn't turned down anywhere today. All I got was a sandwich, Icee, and a CD! (Ben Folds Live, not available in whole in iTunes)
*grumble* stupid VISA.

This happen to anyone else ever? How did you deal with it? Are there HUGE fees accompanied with it? I've only had this card for 3 billing cycles, they'll look over a $6 over-charge, right?

*pulls out hair*

 

[WillJS]

Dave Ramsey says CCs are bad and pay in cash.

And I don't have a CC, thought I'm 14, but my parents do. They use theirs mainly when buying large priced things for insurance coverage purposes, online purchases, and the occasional time when they no cash inpocket when getting dinner or gas.

As for "I hate carrying cash.. it makes me feel so vulnerable": I'd rather have a couple of bills mugged from me than a CC. Getting an ungodly amount charged to my CC + the problems getting it straight with the greedt CC companies.. you see?

But seeing I have no CC, and I'm 14, don't take my advice.



EDIT: They pay by mail, and greedy companies like them won't look over a $.25 charge!


And yes, I listen to Dave...

 

[Leareth]

When I am paying my CC's it takes 1-2 days to clear, the CC's and Bank states it can take anywhere between 3-5 business days.
SO everything is right on the ball.

If you need a payment to go through faster call the CC company and tell them the authorization # of the online payment you made form bank.
Payments mailed can take 2 weeks to process. read the fine print that should have come with the CC.

And $6 over balance is $6 over balance, they can charge you a fee. usually $25 again look in fine print.
Since this is a new card I don't think you have overdraft protection on it.

 

[ChrisWB]

As for "I hate carrying cash.. it makes me feel so vulnerable": I'd rather have a couple of bills mugged from me than a CC. Getting an ungodly amount charged to my CC + the problems getting it straight with the greedt CC companies.. you see?

No. Not at all. Both VISA and Mastercard provide a maximum deductible and fraud protection. It is much safer to use a credit card.

Katie,

Two things could have happened:

1. Bill payments should go through immediately, but sometimes credit card companies do not actually credit the amount to your account for a day or two. This gives them a day or two where they have your money and they don't provide you with credit. It's a nice day of guaranteed interest for them. That's my cynical side.

2. You paid your bill ahead of time - which is good. Your billing cycle hasn't ended yet. Just because you paid your statement doesn't mean a new billing cycle has started. Check your statement to see what day of the month they typically start a new cycle.

Neither of these problems is your bank's fault.

 

[WillJS]

No. Not at all. Both VISA and Mastercard provide a maximum deductible and fraud protection. It is much safer to use a credit card.

Well is it east to get them to deduct it? I'm probably confusing idenity theft and this. (I'm thinking it isn't exactly pie though)

 

[katie ta achoo]

No. Not at all. Both VISA and Mastercard provide a maximum deductible and fraud protection. It is much safer to use a credit card.

Yeah.. if I get cash stolen from me, there's no way I'm getting it back. If someone gets my card, it may be a PITA, but I'll get the money back somehow.

1. Bill payments should go through immediately, but sometimes credit card companies do not actually credit the amount to your account for a day or two. This gives them a day or two where they have your money and they don't provide you with credit. It's a nice day of guaranteed interest for them. That's my cynical side.

2. You paid your bill ahead of time - which is good. Your billing cycle hasn't ended yet. Just because you paid your statement doesn't mean a new billing cycle has started. Check your statement to see what day of the month they typically start a new cycle.

Neither of these problems is your bank's fault.

1- My card has some thing that lets me post it on a specific day. If it's posted on the 18th (like it was), it's shown as paid on the 18th (which it should be).
2- the Cycle ended on the 13th and I paid it electronically on the 17th. I know I'm just being entirely impatient, but arrrrrrggghhhhhh, this is frustrating. I'm just glad I wasn't stranded in the middle of nowhere at a gas station with no ATM and no gas in my car today.

I realize everyone has problem with Credit card at one point or the other. And just like how everyone has relationship problems, I figured that I could get a bit of venting out and some questions answered.

 

[adk]

Well is it east to get them to deduct it? I'm probably confusing idenity theft and this. (I'm thinking it isn't exactly pie though)

If one gets mugged, so long as he is intelligent enough to call his credit card company within a few minutes (I have all my card companies progammed into my cell phone) and report it stolen realistically the thief can't spend too much on it, so long as you aren't mugged outside an electronics store.

Personally, I love using credit. I have to pay one bill a month (albeit sometimes whopping), it greatly reduces the amount of change lost to couch cushions, and the "points" I earn, while not much, earn me a $50 gas gift card every few months.

 

[iJon]

Ask for a credit limit increase. They love giving increases especially to young people. I asked for a raise on all my credit cards and was approved for each one. Not that I needed the extra money, I just wanted to see if they would approve it.

jon

 

[Abstract]

I like cash.

 

[katie ta achoo]

Ask for a credit limit increase. They love giving increases especially to young people. I asked for a raise on all my credit cards and was approved for each one. Not that I needed the extra money, I just wanted to see if they would approve it.

jon

I accidentally clicked on that button today.
I have to be a cardmember for at least 6 months, but I wouldn't do it anyway-- I don't need that much unsecured credit in my name.

 

[yojitani]

Hi Katie -

i'm guessing it's because you don't normally pay in such large denominations. It may actually take a week for them to clear this. Juniper did this with me when I decided to pay it off (1,500 all at once). They said they wouldn't credit it to my account for 7 days "for security reasons." CC companies are the biggest crooks ordinary consumers have to deal with unfortunately.

 

[ChrisWB]

Well is it east to get them to deduct it? I'm probably confusing idenity theft and this. (I'm thinking it isn't exactly pie though)

Yes. Typically they don't approve the charges and the merchant has to eat the fees. Sad, but true. The merchant should have checked an ID & or signature.

With debit cards, you're only liable for $50. Federal law.


PS: Katie,

Blueberry or bran?

 

[puckhead193]

And don't get me started on Change!!

You should see my desk! I must have at least $15 in change (if not more)

 

[johnee]

get an american express card. But not the version that lets you carry a balance. It has no credit limit and you won't pay interest fees. True there is an annual fee of ~$100, but that's far less than any over-your-credit-limit fees or accumulated (and compounded) interest fees. An amex card is as close to cash without actually using cash as you can get.

I've only had a few instances where amex wasn't used, so that's not really an issue.

 

[katie ta achoo]

Yes. Typically they don't approve the charges and the merchant has to eat the fees. Sad, but true. The merchant should have checked an ID & or signature.

With debit cards, you're only liable for $50. Federal law.


PS: Katie,

Blueberry or bran?

I'm really worried about the checking of ID. When I'm at work, ringing people up, I ask for ID, but most people roll their eyes at me and hand over their ID. When I'm out shopping, no one EVER asks me for ID. EVER. Even if I'm charging $350 in a single transaction, they didn't ask me for ID. Kinda scares me.

and muffins: Eventually-- I'm working my way through a recipe book.

get an american express card. But not the version that lets you carry a balance. It has no credit limit and you won't pay interest fees. True there is an annual fee of ~$100, but that's far less than any over-your-credit-limit fees or accumulated (and compounded) interest fees. An amex card is as close to cash without actually using cash as you can get.

I've only had a few instances where amex wasn't used, so that's not really an issue.

I don't have $100 annually. I know it's like $8 a month, but I'm in college and every cent is a cent I want to keep.
This is an isolated incident and won't happen again (as I said, I usually spend like $300 a month on this card). I'm happy with the card, but needed a little vent.

And I looked about the website and couldn't find ANY reference to an overdraft fee. I may call them tomorrow and ask.

 

[Bill Gates]

Dave Ramsey says CCs are bad and pay in cash.

And I don't have a CC, thought I'm 14, but my parents do. They use theirs mainly when buying large priced things for insurance coverage purposes, online purchases, and the occasional time when they no cash inpocket when getting dinner or gas.

As for "I hate carrying cash.. it makes me feel so vulnerable": I'd rather have a couple of bills mugged from me than a CC. Getting an ungodly amount charged to my CC + the problems getting it straight with the greedt CC companies.. you see?

But seeing I have no CC, and I'm 14, don't take my advice.



EDIT: They pay by mail, and greedy companies like them won't look over a $.25 charge!


And yes, I listen to Dave...

Once you're a bit older and actually have a credit card you'll go back over your words. You're much better off buying items with a CC than using cash. Not only do you not have to carry a wad of cash, you also get purchase protection and fraud protection. For example, if someone steals your credit card, you aren't liable for purchases made on it. There is a timeframe to report the fraudulent activity, but it's typically a generous amount. Additionally, if you purchase something and it's defective, or otherwise problematic, you can dispute the charge with the CC company; effectively the CC provides a sort of warranty on your purchase between the time you buy it and when you see the bill. It's also easier to make product returns when you use a CC, as there is a written record. Also, most credit cards have no annual fees, and many offer incentives to use them. For example, Discover offers cash back, and AMEX has various rewards options that a holder can choose from. I could go on and on, but in the end, all my statements will reach the same conclusion that 99% of the time, CC's are way better than cash.

 

[shecky]

CC's are way better than cash.

except that credit cards make it MUCH easier to live beyond your means (for those who are undisciplined, and that is most credit card users.)

personally, i keep around $100 worth of cash on me at all times and i use a debit card that ties to my bank account for half of my transactions on a day to day basis. credit card only for managing cashflow, emergencies, and a few selected large purchases which i always pay off within one or two billing cycles. my normal monthly credit card purchases are $0.00

 

[Bill Gates]

except that credit cards make it MUCH easier to live beyond your means (for those who are undisciplined, and that is most credit card users.)

personally, i keep around $100 worth of cash on me at all times and i use a debit card that ties to my bank account for half of my transactions on a day to day basis. credit card only for managing cashflow, emergencies, and a few selected large purchases which i always pay off within one or two billing cycles.

Easier perhaps, but all it takes is a bit of discipline. It's always good to have a bit of cash on your person at all times for those situations where a retailer doesn't take CC's or in an emergency. However, otherwise, it's best to use a CC. As long as you are able to manage your finances, and pay the bill in full every month, there's no reason not to use a CC. If the temptation to excessively spend is too overwhelming, most debit cards offer similar protections to those offered by credit cards. I occasionally make use of my Visa Check Card, and have no overdraft protection. Thus, it is impossible for me to overspend. With my credit cards, I simple ensure that I know how much I'm spending in a given month, and I've never overspent. Not once.

 

[WildCowboy]

With my credit cards, I simple ensure that I know how much I'm spending in a given month, and I've never overspent. Not once.

That's because you have $56 billion...

 

[Bill Gates]

That's because you have $56 billion...

Not IRL.

 

[pseudobrit]

It's just the dang credit limit! I have the money in my bank account, VISA is just being dumb...

This happen to anyone else ever? How did you deal with it?

Yes. I got an American Express Card and it's never happened since.

Neither have ******** games with them sitting on my cheque for three or four days so they can hit me with a late fee and squeeze out a little interest from me (Capital One loved doing me for this because I paid in full each month), nor have they ever done the double-whammy of hitting me with that "late-fee-that-just-so-happens-to-also-push-you-over-the-limit-for-which-there's-also-a-fee-which-means-you're-paying-us-$100-this-month-for-nothing" fee (Chase, the rotten bastards. My heart burns with fiery rage for their arrogance).

Membership renewal fees are $55 yearly and I've gotten excellent service from American Express on the few disputed charges I've had. They always default to protecting you it seems.

Sorry if I sound like a commercial, but I've been overly satisfied with the way AmEx has treated me over the years, and on a few occasions they've even warmed my heart, which is an unexpected surprise from a financial institution. I mean, my credit union is the better value for sure, because they pay me 5% to store my cash in their money market account. But they've never covered my ass in a pinch like AmEx has.

 

[katie ta achoo]

except that credit cards make it MUCH easier to live beyond your means (for those who are undisciplined, and that is most credit card users.)

personally, i keep around $100 worth of cash on me at all times and i use a debit card that ties to my bank account for half of my transactions on a day to day basis. credit card only for managing cashflow, emergencies, and a few selected large purchases which i always pay off within one or two billing cycles. my normal monthly credit card purchases are $0.00

Hey, I'm not living on truffles and vegetarian-yet-just-as-expensive lobster here. I'm a cheapo. I just happened to have to get a mattress and a car repair on the same billing cycle. I definitely pay my bill within a week of it it coming up. I try to pay for it on the day it posts.

As for the issue of keeping cash on me at all times: I go to Uni Houston. It's not in a very safe part of town. I'm worried about carrying my PowerBook to and from campus so I can take notes in class. I'd develop an ulcer if I carried cash anywhere in the city.

 

[shecky]

Hey, I'm not living on truffles and vegetarian-yet-just-as-expensive lobster here. I'm a cheapo. I just happened to have to get a mattress and a car repair on the same billing cycle. I definitely pay my bill within a week of it it coming up. I try to pay for it on the day it posts.

i should clarify that i was in no way even remotely referring to you with that comment.

 

[Rodimus Prime]

A lot of depends on the bank and if the credit card is though another bank it takes several days for a wire transfer to be check to make sure it is legit. Now if it is though the same bank the processing time is oh about 24 hours at most. My credit card is though my bank and if I transfer money from my account to it. With in 24 hours it has been credited ot the card and my available balances goes up that much.

As for other stuff I recommend you get a check card. On me in the form of plastic I carry a CC, Check card, and a debit card. Which card I used really depends on what I am getting and if I need to get some cash. Advantage of the check card is if my credit card is maxed I still have access to my money. And yes I do max out my CC at the beginning of every semester but my check card is still good.

As a rule I like to have on me at $20-40 in cash because for those cheap less than 5 buck purchases it honestly just easier to pay cash plus there are times where a cc is just not a valid option. $40 buck really is not a lot of money. I also try to keep at least 1 book of checks in my car at all times for those rare times where I do need to cut a check.

 

[apfhex]

As for other stuff I recommend you get a check card.

I was wondering when someone would mention this! I probably pay for about half my stuff with my ATM/debit/check card, including all my bills. I generally use it in place of cash (like at the supermarket), except for restaurants where I nearly always pay cash. Also it's VISA, so it works wherever credit cards will.

I usually put big and/or important purchases on my CC for the security. I lived for years with just my debit card though.