Can using credit be more responsible than using other means of payment?

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shoptalk01
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Can using credit be more responsible than using other means of payment?

Postby shoptalk01 » Thu Nov 01, 2012 3:29 pm

Is there ever a time when using credit would be a more responsible thing to do than using other forms of payment?

As everyone knows I currently have 2 cards, US Bank with $300CL and Capital One with $800CL. These are nothing but high interest annual fee cards for building credit, nothing more. I tried using them when I really needed them last month, but made a large purchase the day before they reported and even though I had them both paid down to $0 by the due date, I was reported with a 98% utilization. So what I've been preached to about over and over again like a broken record was preached to me again, the cards are only good for making one small purchase each every month then put them away until the bill cuts and pay in full by the due date.

This month I've been searching for other methods to make payments as loading up cards with NO rewards then trying to get them paid off before they report would have been all risk with nothing to gain. I've tried paying for purchases in cash, I've also looked into various prepaid and gift cards. The debit card from my bank only gives me $200 per day and my mom said I had to keep an account with that bank but I could have a second e account like Ing Direct or Ally Bank if I could prove that something like that would be a responsible thing to do. To start with I went and go a prepaid Amex, something slammed by everyone I know but no monthly fee and I can transfer money from my checking account just like making a payment to a real credit card only payment is made in advance. Trouble is, I can't seem to make a purchase online with it and living in rural Nebraska, small town merchants don't like it also I can't use it at Sam's Club. So what I tried was getting several kinds of gift cards, but they all charged a fee, even the ones that claim no fee so I guess it takes someone smarter than me to figure it out. I activated several $100 MC giftcards to use at Sam's and they cost me $3.44 each to activate. Some cards aren't clearly defined on the rack so it can be a surprise what you have to pay at the register.

I tried a WalMart prepaid MC for ordering online but once again the card I purchased won't work for that and I have to wait for them to send me a permanent card, then the only way for me to reload it is to pay $3 at the register then pay another monthly fee just to have the card, I finally had to split my online purchase order half on one day and the other half the next day so I could use my bank debit card. I filled with gas 10 minutes before midnight and got zapped with a $35 fee for going over my daily limit.

What I really need to know now, what looks more responsible, making use of the credit cards I have? Paying in cash? or using a prepaid card? What then is my best option for ordering online? I really don't like the prepaid Amex, seems to be kind of useless except you don't carry cash, but I know now I wouldn't want a real Amex.

Anyhow my mom had me talk to her financial adviser who said that I wasn't showing that I am responsible with my finances. He said it's very important that I start to show more responsibility or he's going to have to recommend to my mom that she have me found incompetent to handle my own finances and have someone appointed for partial guardianship over my finances. I just got a job that I should have been able to get except someone pulled some strings and stuck up for me, but if found incompetent, I'll loose the job, so I'm hoping some people here have some good advice.


cashback
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Postby cashback » Thu Nov 01, 2012 4:57 pm

What are you trying to accomplish? I don't understand who you're trying to show that you're responsible? It sounds like your only problem is a debit card with a low daily limit. If the bank wont change your daily limit on YOUR money I'd change banks.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

DavidNY
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Postby DavidNY » Thu Nov 01, 2012 7:04 pm

shoptalk01 wrote:prepaid Amex....I can't seem to make a purchase online with it


As long as it's a permanent card (embossed with your name) with your address on file, it will be accepted like any other Amex card, online or off.

circle_k
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Postby circle_k » Thu Nov 01, 2012 11:39 pm

This is how I look at it, a second bank account with a better debit card is a long term solution and a prepaid card should be used short term only. For instance if you want something to use on a weekend road trip then throw away when you get home, prepaid works great. What I've seen, most major stores will accept Amex it's just the small town merchants and fast food that has a problem with it. I've heard the Amex prepaid is one of the best prepaid out there because there is no monthly fee and you can load money for free from your bank account. There are rumors by using the prepaid card, you may be pre-qualified for an Amex green.

I'm wondering myself what you are trying to prove. If you use your cards with care, don't go over the limit and pay them off each month before the due date, that's all that really matters. You will soon prove to the card issuer that you can properly handle your card and you will get a better card.

I just heard Bank of America has a new online account, no fees and no minimum deposit providing you don't need to physically go to the bank and they should have a decent debit card to go with it. However bad debit cards seem, they are far better than carrying cash around. Just don't try using something like green dot for long term use, that gets really expensive.

shoptalk01
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Postby shoptalk01 » Sat Nov 03, 2012 1:25 am

cashback wrote:What are you trying to accomplish? I don't understand who you're trying to show that you're responsible? It sounds like your only problem is a debit card with a low daily limit. If the bank wont change your daily limit on YOUR money I'd change banks.


My mom watches me like a hawk, gives me exact instructions and expects me to do exactly what she says, Next week she said she's going to a lawyer to have him file a motion for discovery. She said if granted by the court, I would have to turn over all information that could be used against me at a competency hearing. She said they want to know where all my bank accounts are including credit cards and credit reports and the information they need for how to monitor them. She said if I don't want that to happen then I need to show them I'm responsible and I haven't done that yet.

My mom kept on my case until I moved my money to that stupid bank, now since it's a small town and they know the family so well, she can walk in there and ask for my statements any time she wants. I signed up for online statements only, but she noticed it didn't come in the mail, went into the bank and got it changed. All she had to do was ask them why I wasn't getting my statements, they looked it up for her and told her I signed up to go paperless, then she told them I must have made a mistake and she wanted it put back, so now when I try to go paperless, it just switches right back.

I've already done things I'm not supposed to do, my mom said I could get one credit card if I qualified. What she doesn't know is that I got 2 secured cards, she's tried to figure out what happened to the money I put up for the security deposits but so far hasn't figured it out. She doesn't know about the prepaid Amex either. So far I have $1,500 that's been unaccounted for and she's very upset about it. What I like about the credit cards, I can order something then transfer the money for my checking account, she'll know money is missing from my account but she can't figure out by looking at my statements what the money was used for.

As for the prepaid Amex, I had all kinds of problems. When I tried to get my permanent card, they couldn't verify my address so they said they couldn't send the card. I then tried to get the card sent to my mom's address because for some reason some places seem to think it's my address, I got an error message. About a week later, to my shock they sent me 2 cards, one to each address. I tried to activate one of the cards and it had a $0 balance, I activated the wrong card and now the system wouldn't let me activate the 2nd card. I had all kinds of problems, had to call in several times, finally a few days later my account showed up correctly online but according to my account I have 2 cards in my name. The user interface I have to deal with looks antique and clunky but I guess it kind of works. When I look at BlueBird, the user interface looks so much sweeter, but I can't get a clear answer on if I can switch or not. I'm not looking for Amex to offer me a real card, my credit score is below the sucks range and in the totally screwed range, plus it's fallen slightly over the last 3 months instead of going up. I have both cards paid off, no missed payments, no over the limit but they haven't done anything to help yet. One of my friends thinks we have at least 3 to 5 years before we see something above 600. Besides I just keep like $200 on the card and spend maybe $100 monthly, not exactly the figures Amex likes to see. Then again, it's only good for storing some spare funds so you don't have to take tons of cash, but since many merchants around here don't take Amex, it's not really that great of a card.

DavidNY
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Postby DavidNY » Sat Nov 03, 2012 9:30 am

You can get an Amex Bluebird account but it is entirely separate from your prepaid Amex account and balances can't be transferred between the two.

cashback
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Postby cashback » Sat Nov 03, 2012 10:47 am

Sounds like you need to get away from your mom.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

kcarter609
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Postby kcarter609 » Sat Nov 03, 2012 1:44 pm

cashback wrote:Sounds like you need to get away from your mom.


+1. Sounds like she's a psycho with a financial advisor who's even more insane. Unless you're hiding the rest of the story from us.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
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shoptalk01
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Postby shoptalk01 » Sat Nov 03, 2012 4:31 pm

This financial guy don't like me, my mom swears by him but I don't trust him, the guy is as crooked as a dog's hind leg, so I pulled all my retirement funds from him and took the hit on my taxes. Since I did that, he's trying to tell my mom I'm not competent to handle my own finances and she needs to do something. They wanted me to go to a head shrinker for an evaluation, but I refused and he told my mom if she found the right lawyer, she could proceed to take it to court and have be found incompetent based on the fact that I refused the evaluation. Since she has tried to get friends to help me, but about all they did is gave bad advise and tattled on me, so I told them to stay out of my stuff. Now it's killing my mom because there's money missing from my account and she can't figure out what it was used for.

You should have seen her eyes light up when the guy told her a lawyer could file a motion for discovery in court and I would have to turn over all information about my finances to be examined. All I'm going to say is it will never happen.

cashback
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Postby cashback » Sat Nov 03, 2012 4:50 pm

shoptalk01 wrote:This financial guy don't like me, my mom swears by him but I don't trust him, the guy is as crooked as a dog's hind leg, so I pulled all my retirement funds from him and took the hit on my taxes. Since I did that, he's trying to tell my mom I'm not competent to handle my own finances and she needs to do something. They wanted me to go to a head shrinker for an evaluation, but I refused and he told my mom if she found the right lawyer, she could proceed to take it to court and have be found incompetent based on the fact that I refused the evaluation. Since she has tried to get friends to help me, but about all they did is gave bad advise and tattled on me, so I told them to stay out of my stuff. Now it's killing my mom because there's money missing from my account and she can't figure out what it was used for.

You should have seen her eyes light up when the guy told her a lawyer could file a motion for discovery in court and I would have to turn over all information about my finances to be examined. All I'm going to say is it will never happen.


Sorry if I'm wrong, but it sounds like your mom is very wealthy and your only source of income is her. If that is so, then you're going to have to deal with it.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781



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