Should I attach a credit card to my checking account?
I'm planning to get a credit card from the bank I have my checking account with but not sure if I should authorise them to withdraw from my account whenever the payment is due. They are saying that this arrangement would free me from the hassle of paying bills everytime.
Has anyone used this service before? Can they debit my account for wrong reasons too?
I personally wouldn't have linked my checking account with the c
I personally wouldn't have linked my checking account with the credit card.
Let's see what the other members have to say in this regard.
It has its pros and cons, depending how "responsible" (for lack
It has its pros and cons, depending how "responsible" (for lack of a better word) you are with your finances.
Pros are that you won't have to "remember" to make the payment, and thus you won't have to worry about late fees or the APR increasing because of late payments, etc.
Some of the cons are that: 1) If you don't have funds available on the payment due date, they may cause NSF/Overdraft fees, or else you have to make special provisions to "stop" those automatic payments; 2) The credit card agreement probably has a "credits in possession" or "offset" clause that will allow them seize your entire bank account (up to the balance on the credit card) if they ever deem you to be in default.
[QUOTE="CCNovice"]Can they debit my account for wrong reasons too?[/QUOTE]
To expand on my #2 above, yes (if the agreement spells it out). Here's my example: Suppose you charge $1000 on the card and your payments are $20/month that they take automatically...... Now suppose you become delinquent on other credit cards/car note/mortgage, etc.... If the bank does an "account review" and sees that you are delinquent elsewhere, then they may close your credit card. At that point, the entire balance ($1000) becomes due, and they may go into your bank account to take that full balance.
[QUOTE="CCNovice"]Has anyone used this service before?[/QUOTE]I have a similar arrangement with my car note; I keep my checking account at the same bank, and they automatically take my car payment every month. I mainly did it because they gave me $100 for opening the checking account. I've never had problems with the arrangement, and it's convenient for me because I tend to forget when my car payment is due.
