ext_122771 ([identity profile] lethargic-man.livejournal.com) wrote in [personal profile] lavendersparkle 2007-11-19 05:10 pm (UTC)

I heard that being frugal and always being in credit isn't the best way to get a good credit rating. Apparently, having a credit card that I occasionally buy the shopping with and then pay off immediately will make my credit rating better.

This is anecdotal evidence and so only of limited value, but I had no problems securing a mortgage despite never having owned a credit card.

Apparently credit cards are in some ways 'safer' than debit cards. I'm not sure exactly how. I think it's that if you pay for something but the person you pay turns out to be a fraudster who runs off with the cash, if you pay with a debit card, you lose the money, but if you pay with a credit card, the credit card company lose the money.

Not so. I had a cheque book stolen and £3k taken out of my account, but the bank reimbursed the lot; and I believe that debit cards are treated similarly to cheques. What the difference is is that if you are subjected to fraudulent transactions in whatever form, using a debit card you stand to lose all the money in your account (albeit that the bank will subsequently reimburse you); with a credit card you can only lose up to your credit limit.

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