Bad credit, why?

All these products *are* seperate.

Debit Cards are most like cheques, except a vendor can potentially "keep writing himself cheques" (by making debit card transactions) for as long as he likes after your initial consent.

Credit cards have an agreed credit limit which you can spend upto. Within 56 days (2x28) after the first transaction, you must either clear the balance or pay a minimum amount and pay interest (at very high rates) on the rest. If you don't pay even the minimum amount on time, you'll be hit with an extra fee and your credit record will deteriorate.

Overdrafts are attached to current accounts and may be accessed by withdrawing cash (from a machine, or the counter) or by cheque or debit card.

HTH, Alex.

"Henning Makholm" wrote

There are always two sides to every financial relationship. Let's call them the "bank" and the "customer".

If there was no benefit to the customer from the relationship, then the customer would not seek out the bank to obtain the relationship!

In other words, the service is *both* to the bank *and* to the consumer. Without the credit reference agencies, someone with a good credit record would likely find it much harder to obtain credit - as they would be "lumped-together" with all those with bad credit records in the eyes of the banks.

"Henning Makholm" wrote

What is "Kafkan"?

Scripsit Alex Butcher

And that pretty much makes it a no-starter, at least with me.

Is there any logical connection between the fact that the money is drawn directly from a positive account and the fact that the customer has no control over how much he authorizes to be paid?

What I have is a mixture of both, then. When I authorize a vendor to draw money, that authorization is good for only one transaction. And there is agreed limit that I can spend upto, namely whatever the balance on my account happens to be on any given time (plus an overdraft limit which I have arranged separately).

"Alex Butcher" wrote

Would you like to clarify this?

If you pay for something by debit card at a shop, are you trying to say that the shop-keeper (vendor) can legally extract as much money as he likes from your account - even though you only consented to the one-off original amount??

Scripsit "Tim"

You have been implying that the bank is missing "positive" information from the credit reference agencies. If the credit reference agencies were prohibited from recording other information than negative one, the bank could simply ask *me* for the relevant positive information. Since I have no reason to omit positive information about myself, that would give the bank the same amount of data. The need for a credit reference agency would disappear (except for those few who do default), and neither my bank nor me would be less happy about the situtation.

Pertaining to, or reminescent of, German-Czech writer Franz Kafka (1883-1924) - in particular his most famous novel _Der Prozeß_, in which the protagonist is prosecuted and (IIRC) eventually executed, without ever being allowed to know what the charges against him are. He is, however, invited to defend himself in court.

We tend to say "Kafka-esque" rather than Kafkan here in Blighty.

Not to say that Kafkan is wrong of course.

Martin.

"Henning Makholm" wrote

How would that work then? Imagine a fraudster going to the bank :-

Bank: "What good info do you have?"

Fraudster: "Well, I'm the best credit risk ever. I've borrowed absolutely lots of money, paid it all back, and always paid it back well before it was due. I've got lots and lots of very valuable & secure assets that you can sue me for if I default ..." [All lies of course!]

Bank: "Hmmmmm. How can I believe you?"

Fraudster: "Oh er, err - we need a credit reference agency to hold all the good stuff, but we don't have one. Never mind - will you believe me??"

"Henning Makholm" wrote

... but every reason to "add" some extra positive info which isn't true!

Scripsit "Tim"

That would be credit fraud!

Scripsit "Tim"

Bank: I asked about *good* info. If you regularly need to borrow lots of money, it implies that your economoy must be a wreck. Here, I'll give you the address of a very excellent pawn shop. Good-bye. Number 238, please!

Bank: Could I just borrow your account statements to take a photocopy of?

Bank: Fine, if you'll just let me borrow your documentation for a moment.

Which they are not.

But you may well have a reason to make it up.

Just go back to the bank and ask for a debit card - however I know that credit checks are done for debit cards also sometimes, as they can be missused.

As it is here - unless the vendor is breaking the law.

Which would be a debit card.

Not without breaking the law they cant.

No - if you regularly borrow and always pay back it increases your credit rating.

Scripsit "Zoe Brown"

If I made up information *and* documention, I would be a criminal. In that case, I might as well try to bribe the bankman into looking away from the credit check. Or point a gun at his face and demand cash.

Scripsit "Zoe Brown"

The question is whether one can tell the bank that this-and-this transaction has not been authorized, and thereby having it reversed.

"Henning Makholm" wrote

Wouldn't it be so much easier for you if you didn't need to give them all that, because they can get it from a CRA ??

Have you never had "Delayed Charges" added to your CC bill by an Hotel?

That's why it's important to find out why they turned you down. Human error happens too often, but if you persist, you can get it corrected

John

As an aside, I rent out a property in London. Every tenant we have had until now has been a non-UK citizen and has been credit checked by a letting agency. I used to see these and wince as they basically said that the people had no record here, and were therefore considered good. I recently took it over myself and did proper credit checks, these are much more helpful.

Just shows you how some minds think, you didn't hurt someone here, you must be ok!!

John