Posted: 3/24/2011 11:17:33 AM EDT
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Can someone explain the difference?
I know a debit card the funds come out of your checking acct and can be used like a VISA. A secured uses money that you set a side. It seems like both use your money. Does a secured work different that a debit card? I heard a debit card when rent a car that they can hold your money x amount of days and if it was a 1 day rental the pre auth could still be showing so some of your money could still be tied up. Would using a secured card online be better than a debit?I guess the secured would help rebuild your credit though Thanks |
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Quoted:
Can someone explain the difference? I know a debit card the funds come out of your checking acct and can be used like a VISA. A secured uses money that you set a side. It seems like both use your money. Does a secured work different that a debit card? I heard a debit card when rent a car that they can hold your money x amount of days and if it was a 1 day rental the pre auth could still be showing so some of your money could still be tied up. Would using a secured card online be better than a debit?I guess the secured would help rebuild your credit though Thanks Daps, Never use your card as debit. If you do that, and its stolen, then any money that is lost, could be, depending on bank, be your loss. On the other hand, if you use the card as a "Credit Card", then by federal law, you are only responsible for the first $50.00. Never use your pin, which is what you have to do for the debit card. ALWAYS use the card as credit. Learn this lesson right now and repeat after me. I will only use my card as "CREDIT". I'm not that fucking stupid to use it as "Debit" and let my pin get out. |
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Thanks guys that was a BIG DUUUH moment LOL the debit doesn't count towards your report but the secured does..*slapping head* so that's a good point.
Oh yeah I know to use credit and not debit or the pin, If you use CREDIT you get the VISA protection, it just may take a while to get your funds back. |
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If you're trying to rebuild your credit, then a secured credit card is the way to go. Use it to buy things you'd normally be paying cash for, groceries, gas, etc., and pay everything off monthly. There's a limit on how having yet another credit card can help you though, having too many credit cards isn't necessarily a good thing for your credit report  |
That's what I'm planning to do. Divorce and custody battles really don't help the ole credit score but since I got custody of our son it's all good.  I closed all my accounts and got them paid off. hindsight I should have kept one but i was in the pits back then
I'm going to try to get a $500 unsecured or secured credit card through my credit union and manage that and then maybe up the limit. The plan is to buy stuff like gas, food, clothes maybe rent a car for a weekend and then pay it off a couple of days later using online banking, screw writing a check, freaking BOA claiming we didn't get your check in time. riiiiiiiight |
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With the secured card you are saying here's $500, give me a $500 credit line. If you don't pay it, they aren't out anything. You can choose to make the minimum payment or pay it off it full or anywhere in between. You'll most likely be paying interest on any balance left there.
Debit card/Visa Check Card the money comes out in full out of your bank account, just like writing a check. You don't have any payment options. Also the credit reporting thing that was already mentioned. |
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I have no idea why people fuck around with debit cards. Most banks don't give a shit if some one clears out your checking account. Moreover, if you're pulling money from the debit cards, checks, and transfers, the banks will nail you with lots of nice little charges if you slip up. Too many things going on at once with MONEY in one account. Have a savings, a checking, and a credit. Move your savings to the checking to pay off your credit. Use each account type as it was meant to be. Having everything in one spot seems... bad. |
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Get a credit card of some form. One with no annual fee and a grace period. Secured is fine. When my friend was getting his finances back in order his secured card payed a small amount of interest and he made payments, it wasn't like they took his $500 and payed the balance off, it just sat in an account and he payed the card like any other.
The protection from fraud is way better than a debit card. Find one that will auto pay from an account if you can and never get a late fee or finance charge. |
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Quoted:
Thanks guys that was a BIG DUUUH moment LOL the debit doesn't count towards your report but the secured does..*slapping head* so that's a good point. Oh yeah I know to use credit and not debit or the pin, If you use CREDIT you get the VISA protection, it just may take a while to get your funds back. You should never use your debit card, period. Even if you use it as a credit card, the money still comes out of your checking account. If someone steals it and cleans out your account then you have nothing to live on. You will probably get most of it back, but it may be months before you do and in the mean time you won't have anything in your accounts to pay bills. Credit cards don't take from your bank account. If some shmuck maxes it out, you still have the money in your checking/savings accounts to live on. |
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When you have built up your credit again in a few years, you'll be able to get an unsecured credit card, then there's that $500 (plus interest) you have squirreled away in the secured credit card which you then can close and get your money back, instant cash found in a pocket you forgot about |
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Quoted:
Quoted:
Can someone explain the difference? I know a debit card the funds come out of your checking acct and can be used like a VISA. A secured uses money that you set a side. It seems like both use your money. Does a secured work different that a debit card? I heard a debit card when rent a car that they can hold your money x amount of days and if it was a 1 day rental the pre auth could still be showing so some of your money could still be tied up. Would using a secured card online be better than a debit?I guess the secured would help rebuild your credit though Thanks Daps, Never use your card as debit. If you do that, and its stolen, then any money that is lost, could be, depending on bank, be your loss. On the other hand, if you use the card as a "Credit Card", then by federal law, you are only responsible for the first $50.00. Never use your pin, which is what you have to do for the debit card. ALWAYS use the card as credit. Learn this lesson right now and repeat after me. I will only use my card as "CREDIT". I'm not that fucking stupid to use it as "Debit" and let my pin get out. I am exclusive with my use of credit cards. I NEVER use my debit card...even as a credit card. The only people who know my PIN is my bank. I use only their ATMs for cash...and never use the card in any other way. I probably make 2-3 CC payments each month to pay the card down as I use it. |
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Quoted: That's what I'm planning to do. Divorce and custody battles really don't help the ole credit score but since I got custody of our son it's all good. I closed all my accounts and got them paid off. hindsight I should have kept one but i was in the pits back thenI'm going to try to get a $500 unsecured or secured credit card through my credit union and manage that and then maybe up the limit. The plan is to buy stuff like gas, food, clothes maybe rent a car for a weekend and then pay it off a couple of days later using online banking, screw writing a check, freaking BOA claiming we didn't get your check in time. riiiiiiiight Paying online (not billpay) is the best way to ensure that your payment is processed in a timely manner. |
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Quoted:
When you have built up your credit again in a few years, you'll be able to get an unsecured credit card, then there's that $500 (plus interest) you have squirreled away in the secured credit card which you then can close and get your money back, instant cash found in a pocket you forgot about Depending on his debt, he'll be back on his feet a lot sooner. I settled on almost 20K of credit card debt a year ago, have 2 unsecured cards for 9 months now ($500 limit and a $750 limit) and am set to close on my house on the 13th of April. 
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Quoted:
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Can someone explain the difference? I know a debit card the funds come out of your checking acct and can be used like a VISA. A secured uses money that you set a side. It seems like both use your money. Does a secured work different that a debit card? I heard a debit card when rent a car that they can hold your money x amount of days and if it was a 1 day rental the pre auth could still be showing so some of your money could still be tied up. Would using a secured card online be better than a debit?I guess the secured would help rebuild your credit though Thanks Daps, Never use your card as debit. If you do that, and its stolen, then any money that is lost, could be, depending on bank, be your loss. On the other hand, if you use the card as a "Credit Card", then by federal law, you are only responsible for the first $50.00. Never use your pin, which is what you have to do for the debit card. ALWAYS use the card as credit. Learn this lesson right now and repeat after me. I will only use my card as "CREDIT". I'm not that fucking stupid to use it as "Debit" and let my pin get out. Dude's preaching this and can't or won't afford a membership ? yeah , right MF'r doesn't have a clue |
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Quoted: Quoted: Quoted: Can someone explain the difference? I know a debit card the funds come out of your checking acct and can be used like a VISA. A secured uses money that you set a side. It seems like both use your money. Does a secured work different that a debit card? I heard a debit card when rent a car that they can hold your money x amount of days and if it was a 1 day rental the pre auth could still be showing so some of your money could still be tied up. Would using a secured card online be better than a debit?I guess the secured would help rebuild your credit though Thanks Daps, Never use your card as debit. If you do that, and its stolen, then any money that is lost, could be, depending on bank, be your loss. On the other hand, if you use the card as a "Credit Card", then by federal law, you are only responsible for the first $50.00. Never use your pin, which is what you have to do for the debit card. ALWAYS use the card as credit. Learn this lesson right now and repeat after me. I will only use my card as "CREDIT". I'm not that fucking stupid to use it as "Debit" and let my pin get out. Dude's preaching this and can't or won't afford a membership ? yeah , right MF'r doesn't have a clue I thought school was still in...  |
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So on the secured I pay interest or a fee on it every month or is it only when I keep the balance lower than the $500?
I have a checking & savings. I've paid off the credit cards, and two car payments a few dr bill, one got sent to collections but it got paid off a while ago. Maybe I'll get lucky and give me a $500 unsecured. My plan is to use the acct I have there to pay on the credit card I'm going to talk to the lady more in a few days when I get my IRA rollover check from the part job I worked to get debt free. I'm going to park the money at the credit union in an IRA |
You don't pay interest unless you have a balance, otherwise, as I recall, you are paid interest for the amount of money you deposited for the secured credit card. You may need to pay an annual fee to open the account and keep it, hell some unsecured credit card want to charge for the dubious privilege of using their cards  ETA: since I wasn't sure, I looked it up http://credit.about.com/od/creditcardbasics/a/proconsecured.htm 5. You can earn interest on your deposit. Some secured credit cards place your deposit into an interest-bearing savings account. Depending on the interest rate, you might be able to earn a few bucks. |
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hmmmm sounds like secured is the way to go since I only want a small amount. I may just drop $500 on it and call it a day. That should cover a weekend get away of a hotel and car rental Cash to pay for food and entertainment(I'm moving to the cash is king thing)Get back and few days later just put money in the acct to cover what I spent & if they pay me interest then it seems almost a no brainer.
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Thanks guys that was a BIG DUUUH moment LOL the debit doesn't count towards your report but the secured does..*slapping head* so that's a good point. Oh yeah I know to use credit and not debit or the pin, If you use CREDIT you get the VISA protection, it just may take a while to get your funds back. You should never use your debit card, period. Even if you use it as a credit card, the money still comes out of your checking account. If someone steals it and cleans out your account then you have nothing to live on. You will probably get most of it back, but it may be months before you do and in the mean time you won't have anything in your accounts to pay bills. Credit cards don't take from your bank account. If some shmuck maxes it out, you still have the money in your checking/savings accounts to live on. My bank replaces any money fraudently charged to your debit card within 24hrs. My card # was used once for over $1600...had full credit/refund to my account within 24hrs. If you have to wait months for a refund..your bank sucks. |
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Wait for the offers to start rolling in the mailbox if you want an unsecured. They will show up left and right no matter how bad you are jacked up. I was getting offers while other cards were 120+ days past due.
Also, if it says pre-approved, it doesn't hurt your credit to see if they will actually approve you. They will, maybe like $300 or something. Try Orchard Bank, they were the first to take me. Capital One was next. You'll pay a yearly fee that can't be more than a certain % of your limit (newer law). I think they want to give you more credit to get the rate up. Also, 24.9% interest, but on a $300 limit that's really nothing and worth every penny to get your credit back together. I use TrueCredit.com $15 a month credit monitoring and it shows you what's on your report AND your score for all 3 companies. A lot of them don't show you your score. It's worth every penny to me to watch my score go up and know where I stand. It'll also let you know if anyone is chasing you or checking your credit (debt collection agencies will do this on occasion.) |