Didn't some law just pass that involved changing the fee schedule for merchants who take debit cards? I know I keep hearing a commercial on the radio targeted towards businesses who take the cards that talks about a fee change.
Is that why BoA is doing this? Are they trying to make up for lost revenue due to a law change?
Yes. That is exactly why. Having taken credit cards in the past, I can tell you that it was significantly more expensive, as a merchant, to take a debit card than a credit card. Once the fees got capped, all banks with debit card programs lost a huge revenue stream.
The idea of the law was that merchants will be able to offer lower prices because the fees they have to pay to the merchant services companies will be way lower. It remains to be seen if this would offset the monthly charges for debit card users and those living paycheck to paycheck.
Yes. That is exactly why. Having taken credit cards in the past, I can tell you that it was significantly more expensive, as a merchant, to take a debit card than a credit card. Once the fees got capped, all banks with debit card programs lost a huge revenue stream.
Really? I always thought debit cards were cheaper than credit cards for merchants, provided that you enter your PIN and didn't sign for it.
Yes. That is exactly why. Having taken credit cards in the past, I can tell you that it was significantly more expensive, as a merchant, to take a debit card than a credit card. Once the fees got capped, all banks with debit card programs lost a huge revenue stream.
Really? I always thought debit cards were cheaper than credit cards for merchants, provided that you enter your PIN and didn't sign for it.
Me too. I always thought merchants preferred debit cards because they had a flat per transaction fee while credits cards were x% of the transaction as a fee.
I'm not entirely sure how combined debit/credit cards work, such as my Chase business card. It's technically a debit card, as it ties directly to my account (instead of a line of credit), but there are the same protections and rewards as a credit card (it's VISA, cash back whatevers, replaced if stolen, and Chase calls me like a worried grandma anytime I use it on a trip to make sure I authorised the purchase).
I don't really see the point of getting an actual credit card, except in cases of emergency expenditures or some special offer (e.g. Amazon, JetBlue stuff).
I'm not entirely sure how combined debit/credit cards work, such as my Chase business card. It's technically a debit card, as it ties directly to my account (instead of a line of credit), but there are the same protections and rewards as a credit card (it's VISA, cash back whatevers, replaced if stolen, and Chase calls me like a worried grandma anytime I use it on a trip to make sure I authorised the purchase).
I don't really see the point of getting an actual credit card, except in cases of emergency expenditures or some special offer (e.g. Amazon, JetBlue stuff).
VISA check card or whatever? I have the Mastercard equivalent; same basic deal.
Am I the only one who uses a debit card simply because I prefer to never spend what I don't have regardless of ability to pay back? I just have a problem with borrowing and debt generally; I hate being beholden to anyone, especially financially. In all honesty I plan in my life to never buy a house, always rent and always buy cars for cash.
I just have a problem with borrowing and debt generally;
Then you're fucked in the long run. Your lack of credit history will be a big problem for you. Many employers even run credit checks as part of the hiring process. No credit is seen as being just as bad as bad credit whether you like it or not.
always rent and always buy cars for cash.
never spend what I don't have regardless of ability to pay back?
This isn't a sound stance. You're giving up substantial liquidity, leverage, and opportunity and gaining nothing in return.
There is nothing wrong with having a credit line.
So...you want to always be beholden to a landlord financially?
Also this. Leases are at least a year: you're beholden for that year. You can also be evicted, among other things.
All of my monthly expenses go onto a credit line. At the end of each month, I pay all of the expenses at once. Between the purchases and the settlement, I have the liquid cash available for any contingency/opportunity. I pay no interest, nor any fees for this privilege. Further, in a dire emergency, I have a credit line available to handle said emergency if I am willing to use it. On top of all that, the card has several benefits, including cash back (effectively a 1-2% discount on everything I ever buy), travel insurance (free), extended warranties (free), and the ability to chargeback. I am also liable for ZERO charges if they are fraudulent.
How at any point is this a problem?
Having a credit line gives you MORE independence and freedom, not less. You're LESS beholden to others, as you have more economic leverage at NO COST TO YOU.
(effectively a 1-2% discount on everything I ever buy)
I like to think of it as a small raise, personally. Actually, given current rates, it's kinda like putting all of the money you would spend into a 1-year CD.
Yes, responsible credit card use is actually part of sensible financial management. It lets the consumer take control of their cash flow completely.
Credit, when used wisely, gives you unparalleled flexibility and adaptability. This is why we got away from the gold standard and moved towards fiat currency and a credit-driven economy.
I am slowly moving towards putting everything on a credit card and then just paying that off at the end of the month. I've just gotta learn how long it takes for money to transfer between one bank and another so I don't get hit with any finance charges or anything, simply because I pay a day too late and the calculations fire off.
Also, even though I currently have a mortgage I'm really considering whether or not I'd want to continue down this route. The fact that I'm building equity is great, but I'm unhappy with all of the tertiary expenses ($1000 to cut down some massive trees, $100 for HVAC inspection, $200 for lawnmower, etc...) in that I'm not that certain that the amount of enjoyment I get from my house is worth this sort of expenses.. Dunno, that would be an entirely different thread.
So...you want to always be beholden to a landlord financially?
Also this. Leases are at least a year: you're beholden for that year. You can also be evicted, among other things.
Depends on the lease. I'm a landlord and my leases are 30-day month-to-month leases (which may or may not be legal, depending on where you live, but they are legal up here). Basically, my tenants can break the lease at any time if they give 30 days noticed, but I can also evict them, jack up rents, etc., at any time if I give 30 days notice.
Trust me, though. Speaking as a landlord, you're better off owning if you can afford it, IMHO. Outside of the benefits to your credit history, the tax break you get on mortgage interest (which may or may not stick around depending on what happens with regard to future tax reform, but I digress) also is quite nice. Plus now's a pretty good time to buy as the market's really low as long as you're reasonably smart about it (i.e. plan to live in said house for a while, don't go for anything stupid like an interest-only mortgage, etc.). However, if you're buying purely as an investment, I would not recommend it.
Don't forget that you can own a home without ever being indebted to anyone. It just requires quite a bit more money than most of us have on hand to buy a home in cash.
There's no reason to ever use a debit card. A credit card is superior (for the consumer) in every way. That assumes, of course, you aren't a dumbass and you never carry a balance. I haven't ever carried a balance in almost a decade of credit card usage.
Except for those of us who can neither get a credit card due to nobody wanting to finance someone with no credit history, and really can't afford taking cash out of their paycheck.
Except for those of us who can neither get a credit card due to nobody wanting to finance someone with no credit history, and really can't afford taking cash out of their paycheck.
For those people (like me) debit cards are king.
There are options for people with no credit, as long as you have a steady job of some sort. However, financial responsibility is required which is why I held off on using credit for awhile.
So...you want to always be beholden to a landlord financially?
Also this. Leases are at least a year: you're beholden for that year. You can also be evicted, among other things.
Depends on the lease.
Yep. Been living in the same apartment for 2.5 years. Two of those years has been on 4 six-month leases. The other six months have been month-to-month. And those six were interspersed between the other leases. When my current lease runs out this month, I'll be on month-to-month again next month. It's pretty nice to have that option.
I too like renting only because I'm still not sure where I'd actually like to own property.
That's also a plus to renting. Also if you're not sure you want to stay in the same area for quite some time. The first time homebuyer tax credit really pushed me to buy property sooner rather than later. Plus being able to vote is a nice thing.
Honestly though, the best thing I've found about homebuying is the fact that I don't have to use that second address line anymore.
I too like renting only because I'm still not sure where I'd actually like to own property.
That's also a plus to renting. Also if you're not sure you want to stay in the same area for quite some time. The first time homebuyer tax credit really pushed me to buy property sooner rather than later. Plus being able to vote is a nice thing.
Very true. I didn't buy property until I was pretty sure I was in the area I wanted to settle down in. However, why couldn't you vote before you owned property? Were you just too transient to settle down somewhere and register to vote?
One other tip to make things easier if buying property, though this would mostly help if you are very handy with carpentry, plumbing, electrical, and/or any other household repair stuff is to look into buying a duplex, triple decker (common in New England) or some other multi-family home. Live in one apartment and rent the other/s out. Banks will let you borrow more than your normally would in that case as the other apartment's rent counts towards your income. You can also deduct 50-100% of the household repair expenses (depending on what gets fixed) on your taxes as business expenses.
Of course, then you'd have to deal with the annoyances of being a landlord... Not everyone is cut out for it. My parents were (though they were partnered with my uncle, which helped), but I'm planning on getting out of landlording as soon as the market recovers enough to sell off my rental property and not take a loss.
INTERNET NOT SURE WHAT JOKES ARE UNLESS COLORED GREEN :-p
Reminds me of when I went to the Consitituion center in Philly and they have these computers set up around each time period asking you a list of questions to see if you could vote. I could vote at all times during the history of the US of A it's good to be a white, Male, Landowner over the age of 18.
Oh speaking of banks I just refinanced my mortgage for the fee of 600 dollars from a 30 year 5.25 to a 15 year 4.0 and it only raised my monthly payments bill about 150 dollars.
I'll be renting for the next 6 years (until my daughter graduates high school.) I almost bought a place last year because prices and rates were low but I'm glad I didn't.
After she is done with school I'll have 25 years with the same company and planning on my eventual retirement property.
School deadlines overstimulate my sense of priority due to their frequent external reminders and short term nature, to the point that I forget most everything else. I've held back from using a credit card; I'd have to pay rent on time, consistently and easily, before I trusted myself with that. Or you know, remember to eat. I recall things being easier to regulate when I had a 9-5.
Remember though, if you own a place, you lose everything you invested in it when the government comes to put you in reeducation camps. If you invest all your capital directly into precious metals, ammunition, non-perishable foods and an invisible bunker in the middle of nowhere, your money is protected for as long as you can hold a rifle.
Comments
The idea of the law was that merchants will be able to offer lower prices because the fees they have to pay to the merchant services companies will be way lower. It remains to be seen if this would offset the monthly charges for debit card users and those living paycheck to paycheck.
I don't really see the point of getting an actual credit card, except in cases of emergency expenditures or some special offer (e.g. Amazon, JetBlue stuff).
I mean, you would eventually own a house.
There is nothing wrong with having a credit line. Also this. Leases are at least a year: you're beholden for that year. You can also be evicted, among other things.
All of my monthly expenses go onto a credit line. At the end of each month, I pay all of the expenses at once. Between the purchases and the settlement, I have the liquid cash available for any contingency/opportunity. I pay no interest, nor any fees for this privilege. Further, in a dire emergency, I have a credit line available to handle said emergency if I am willing to use it. On top of all that, the card has several benefits, including cash back (effectively a 1-2% discount on everything I ever buy), travel insurance (free), extended warranties (free), and the ability to chargeback. I am also liable for ZERO charges if they are fraudulent.
How at any point is this a problem?
Having a credit line gives you MORE independence and freedom, not less. You're LESS beholden to others, as you have more economic leverage at NO COST TO YOU.
Yes, responsible credit card use is actually part of sensible financial management. It lets the consumer take control of their cash flow completely.
Credit, when used wisely, gives you unparalleled flexibility and adaptability. This is why we got away from the gold standard and moved towards fiat currency and a credit-driven economy.
Trust me, though. Speaking as a landlord, you're better off owning if you can afford it, IMHO. Outside of the benefits to your credit history, the tax break you get on mortgage interest (which may or may not stick around depending on what happens with regard to future tax reform, but I digress) also is quite nice. Plus now's a pretty good time to buy as the market's really low as long as you're reasonably smart about it (i.e. plan to live in said house for a while, don't go for anything stupid like an interest-only mortgage, etc.). However, if you're buying purely as an investment, I would not recommend it.
For those people (like me) debit cards are king.
Honestly though, the best thing I've found about homebuying is the fact that I don't have to use that second address line anymore.
One other tip to make things easier if buying property, though this would mostly help if you are very handy with carpentry, plumbing, electrical, and/or any other household repair stuff is to look into buying a duplex, triple decker (common in New England) or some other multi-family home. Live in one apartment and rent the other/s out. Banks will let you borrow more than your normally would in that case as the other apartment's rent counts towards your income. You can also deduct 50-100% of the household repair expenses (depending on what gets fixed) on your taxes as business expenses.
Of course, then you'd have to deal with the annoyances of being a landlord... Not everyone is cut out for it. My parents were (though they were partnered with my uncle, which helped), but I'm planning on getting out of landlording as soon as the market recovers enough to sell off my rental property and not take a loss.
Reminds me of when I went to the Consitituion center in Philly and they have these computers set up around each time period asking you a list of questions to see if you could vote. I could vote at all times during the history of the US of A it's good to be a white, Male, Landowner over the age of 18.
After she is done with school I'll have 25 years with the same company and planning on my eventual retirement property.