RE: FN-FORUM credit cards

date posted 18th April 2001 17:37

Why not just use a debit card against your bank account? It has the
same protection against fraud as a credit card

The advice I have seen is that debit cards offer much less protection than
credit cards in terms of security in the UK. They are not covered by all the
consumer credit legislation, for example. I think the banks will usually
offer the same sort of protection against fraud as for cheques, but this may
be at their discretion. The computer press always seems to advise using
credit cards for all mail order purchases, even though this may attract a
surcharge. This is mainly because a debit card offers no protection if the
trader fails to deliver.

I think the usual way to get an acceptable credit rating for credit cards in
the UK is to open a bank account, make a monthly deposit, and keep it in the
black for 6 months. The same bank should then approve your application -
other banks may take a little longer.

A VISA debit card should be accepted wherever a VISA credit card is
accepted, because payments are processed through the same system, but at a
much lower cost to the trader. Your first bank will normally give you a
debit card within 3 months I think - some may issue one much sooner.

If you are thinking of moving abroad, you may have to build a credit rating
from scratch on arrival. This can be a nightmare when trying to rent a flat
for example.

David Nye
http://dnye.co.uk
Business Systems, Database & Internet Applications Design & Development.
Microsoft SQL Server, Access, ASP & VB Programming.