Useful info for some Credit Card users.

[Specineff]

Hi guys.

I'm working for Macy's credit card department, and besides the idiotic customers who don't want to pay because they were too wasted to remember the charges, I'm enjoying it.

So I would like to pass some useful info for those of you who have or are thinking of getting a credit card, based on what I have seen there.

First, be aware of cards that promise you a really low APR. Some of them use bait and switch tactics, and not even by calling their CSR department you may get the full scoop. Capital One is particularly guilty of this, since only after you ask for the third or fourth time, will they tell you that their low rate is only valid for a short while.

Second. Read the goddamned fine print. You may not know you'll be getting hit with fees over fees over fees for withdrawing cash with your card from an ATM. If you don't understand it, call their CSRs and ask. (Politely. Keep in mind them guys and girls are subject under a lot of stress from fuckwads who give them crap for silly stuff. Be nice to them, and they'll be nice to you.)

Third. This is really important. Many banks right now keep your cash withdrawals as a "special" balance inside of your total balance, and no payment will apply to that balance you owe to the bank until you pay off all what you have added up as purchases. Meaning, you have a 2000 dollar limit, and put 1000 bucks worth of merchandise, and withdraw 500 worht of cash. You'd think that any partial payment that you apply to the 1500 you owe your bank will reduce the finance charges, right? Wrong. The bank will apply any payment to the 1000 bucks of merchandise first, and until you pay that off, no payments will make the 500 worth of witdrawals go down. And get this: those 500 will keep on generating interest, and that interest will be added to the 500, and treated as that. (Not all banks do this, but make sure you ask)

Fourth. Cash withdrawals have a fee per withdrawal. So if you make five $10 withdrawals, you will be hit with five fees which will be more than if you had made a single 50 dollar withdrawal.

Fifth. To cheat the bank on ATM withdrawals, go to a drugstore or grocery store, make a purchase and ask for cash back. It should be treated as a purchase totalling the cash plus the merchandise. Unless the store indicates the bank that it was a cash withdrawal but I doubt any does as of now.

Sixth. Your bank may reissue you a new card with newer security features, or after you reported yours lost, stolen, or unreadable. The card cannot be used right out of the envelope. You must call to activate it. Some banks will simply ask you to enter a code, others will have you talk to a live person to run a verification process. When you do, call from the number you gave to the bank as your primary one. Their caller ID will make it easier for you and them to verify your ID. Unless someone has you at gun point, there is no way anybody who's trying to steal your info and your account would call from your primary phone. Some banks will ask you to answer a few questions about your background. For example, if you have lived at some place or owned property in a certain city. Do not panic. These are public records, and it's not like anyone can do anything with them. Think clearly, and try to answer their questions as accurately as possible. If you fail the verification process, they may block your new card, and you will need to wait until they contact you to perform further verification. Remember that all this is done to protect you from ID theft and fraud, and will save you many headaches in the future.


Seventh. No reputable established company, under any circumstances, will ever call you to request sensitive information. Just as there are phishing emails, some people have been trying to pass as collections/credit/CSR agents and sucker valuable info out of you. If such a thing happens (someone once called me looking for my name in order to collect a debt from a place I never lived at. He requested my SSN so he could make sure I was who I said I was. That raised a flag. Specially since I hadn't received a work permit nor an SSN yet by that time.), ask for a name, department, and extension number. Don't hand out any info, and if you hold an account with the company they say they represent, call their 800 number and then deal with them. And if there's no person working there by the info they gave you, report them. The most a reputable company will ask you to furnish when ever you call them, should be the last 4 of your social.

Eighth. When you call a company like these, have your account or card number at hand. It will save you, and the rep, some valuable time that can better be used to solve the problem at hand, if any.

Ninth. If there's a problem with your account, try to stay calm at the rep. Remember, he/she hasn't done anything to you or your account, and may be the only person willing to believe you and help you. If you feel angry and upset, let them know you are not satisfied and not feeling happy, but let them know you are not angry at him or her. Also, avoid using the expression "You guys did this" or, "because of you guys." This makes the rep get defensive, and kills any good disposition he might have had to help you.

Tenth. Remember to say "thank you" like you mean it, especially if you have had a big problem solved. How would you feel if someone you just helped get out of a burning car said simply "Ok. Good. See you. Bye.", when you risked getting burnt and disfigured yourself? (Ok, tracking a lost payment and a burning car are not the same thing, but you get the idea.) Just a few words of encouragement can make his day better. And many reps put positive comments on the incident's details, which make both you and the rep look good in the eyes of the company.

Eleventh. If you think insulting the company or their employees will get you anywhere, try grabbing your card or statement, and scream the worst obscenities at it at the top of your lungs until your problem gets fixed. Not likely, huh?

Twelfth. Keep your damned receipts! Should there ever be a charge that needs to be disputed, a return that was not applied to your account, or similar, you may need to provide those as proof. Also, remember that when the bank asks you to fax some documents, they need them to prove to the merchant that things happened the way YOU say they happened, not because they have an arrangement with the companies that make fax machines and paper.

Thirteenth. Don't think that just because you haven't received a statement it means you don't have anything to worry about. Sure. Some banks or stores will not send you anything if there's no activity on the account. But even though some companies will make an exception if there was a problem with them sending them to the wrong address, you are still responsible for paying off that jewel-studded toilet you bought at Nordstrom's. You can always call or inquire online, if possible.

Fourteenth. Make your goddamn payments on time. This will result on the bank increasing your line if possible, and treating you like a VIP due to the time and volume of your business. Do you think a bank will risk losing a 10 year or older with pay history account due to a silly problem? If you cannot make the payment on time due to some sort of emergency, try and call and leave a message and see if some arrangements can be made. It's better for the bank to eat up a few dollars worth of interest for one month than having your account go to collections.

Fifteenth and final. If you see an unathorized charge, dispute it ASAP. When you call their fraud department, their reps are required to go through every single transaction to see which charges are legit and which not. Be patient, and try and see if any of the charges that will be quoted to you refresh your memory. While you won't be held responsible for anything you didn't purchase, guess who will have to pay for all the trouble of finding out what happened if it was you charging your card while wasted?

Hope this had been any help.

Spec.

[Zhon]

Thanks, Spec, for the scoop. It's always more clear from the other side.

[CMoon]

Wow, you can make it even simpler.

1. Charge as LITTLE as possible.

2. Pay your FULL BALANCE every month. PERIOD.

This is the only way to not get fucked by credit cards. The terrible thing of course is that you need a credit card (or loans) to build credit.

[landshark]

Alot of insurance companies offer credit fraud protection and/or identity theft protection for a very small fee as well. (~$30 a year)

[Minzoku]

Wow, you can make it even simpler.

1. Charge as LITTLE as possible.

2. Pay your FULL BALANCE every month. PERIOD.

Haha, my ex never learned that [wonder why he's my ex?]... It astonishes me how many of my friends are in such debt and never seem to be able to get out of it when they spend beyond their means all the time

I think the only times I never paid in full was when I was in college with no income--kind of hard to make payments without money but I did it so I could buy things without my folks necessarily having to know about them... kept getting the inquisition every time I charged something and they couldn't tell what it was.

Ah, college... stupid times.

[FatCobra]

I TOLD myself that my credit card is not a magical goodies getter, and what do I do? I use it to buy an Import Sega Saturn.

Oh well, it's nothing I can't pay off at the end of the month. I just wanted to play Strikers 1945 BAD. That is some pretty good advice Minzoku, I hid mine after paying for the Saturn.

[SheSaidDutch]

Debit Card only for me.

My parents dont have a credit card either

My brother does and he's in debt because of his ex, not a good situation to be in

[Ghegs]

A lot of what Specineff said could be applied to other things as well - I work in customer service for a magazine publisher and it would take only a few edits into Spec's text for it to work perfectly in this environment.

You'd be surprised (I know I am) how many of them are willing and eager to give out their SSN, though. It's insane, apparently some people think there's no other possible way to find their subscriptions from our database...

EDIT:

I explained that a bit poorly. We don't ask for SSN (as we have no need for it), the customers themselves offer it. Normally we ask for the subscription number, if they don't have it available we find their info by name and address. But some customers instantly say "I don't have it, but here's my SSN..."

[neorichieb1971]

I am a Mastercard employee and I can tell you some surprising things too.


1) Mastercard and Visa are just the money movers, they have absolutely nothing to do with your billing, interest, credit or anything like that. Just think of MC and Visa as the brains behind the technology which operates the global network.

2) Mastercard's transaction fee's are less than miniscule (cannot reveal but its just a few cents).

3) Most Americans do not know their card supplier (the bank) because its such a big country where banks have certain territory. In order to get custom from the other side of the country they issue credit cards through the mail based on your credit report.

4) In a small country, its mostly your own bank who issue credit cards, so its a much more user friendly experience. 99% of British people know their credit card suppliers. (IE, Barclaycard = Barclays).

5) Credit cards are a way for Banks to offer pre approved loans. That is all they are.

6) Banks make 5% of every transaction passed through the CC network. This is taken from the store/online vendor that sold you the goods. So in fact a $100 item sold is only netting the vendor $95. The only exception is places like Gas stations which make usually take less of a hit. It is also the reason why Gas stations will only accept cash for Lottery tickets. Because gas stations will not pay the difference of 5% to the lottery company to compensate the lost funds.

7) The 5% that the bank takes from the transaction is used to offer 1% incentives to use the card. Like air miles, cash back, gift cards etc. Leaving a remaining 4% of pure profit. So for every $100 spent, you get 100 points = $1 cash value.

The average American is $29,000 in debt.

9) There are things that money cannot buy, but for everything else there is Mastercard

[Vexorg]

As long as we have some credit card people here, what would you say about establishing credit if you have none at all (I checked all three credit report companies, and have no credit history anywhere, it seems.) I have no significant debt, and a decent amount in savings, and need to do something to establish credit since I will be looking at a car loan sometime in the semi-near future.

[neorichieb1971]

Well my CC company is citicard. www.citicard.com

You could always try to apply for a Credit card.


Usually no credit at all is not a good thing, its best to have your name on the sheet somewhere because if you need credit in the future its likely to burn you later on especially if you end up being middle aged with no credit at all.

I use CC's to pay for everything and then pay it off in one lump sum about 5 days before the end of the monthly cycle. This way I get all the benefits of having a CC and no interest payments. You have to be very responsible though. I mean buying a cab and a few Cave kits can really burn your ass.

In your case its probably just wiser to get a bank loan for a car. The bank you have checking with will trust you more than a alien bank especially if no credit report is in your name. If you can get a car with 0% from the dealer, thats even better.