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What seemed weird when I visited your country
bhtooefr:
Also, you can build credit by paying off cards before the interest charges ever hit, too.
And, credit checks also affect employment opportunities, even.
pwhodges:
--- Quote from: bhtooefr on 18 Dec 2013, 15:10 ---Credit means that it's being processed through Visa or MasterCard's network, you use a signature to verify who you are (above a certain amount), and the retailer pays the transaction fees.
--- End quote ---
We don't use signatures any more unless the machine is broken, but the rest is the same here, except a UK credit card withdraws money from a completely separate account whose balance (usually) only goes negative (a loan account, in effect), and you then repay in part or in whole from the positive balance in your current account.
When you use a credit card for actual extended credit, where does money that come from? - or can't you carry credit over like we can (which would sound like my description of a charge card)?
bhtooefr:
If you use a credit card, that is extended credit, and you either pay for it by the end of the month, or you get charged interest. (And then you have American Express, which was purely a "charge card", where the balance simply had to be paid by the end of the month, but I believe they do have credit options now. And Discover is the fourth major credit/charge card network.)
If you process a debit card as a credit card, that is not extended credit, it just processes through the credit network.
pwhodges:
--- Quote from: bhtooefr on 18 Dec 2013, 16:14 ---If you process a debit card as a credit card, that is not extended credit, it just processes through the credit network.
--- End quote ---
Ah, right. That's different then from some European cards (I believe) which can actually operate multiple accounts.
94ssd:
--- Quote from: bhtooefr on 18 Dec 2013, 15:47 ---Also, you can build credit by paying off cards before the interest charges ever hit, too.
And, credit checks also affect employment opportunities, even.
--- End quote ---
I just got a letter saying that my car insurance premiums were lowered slightly because of a positive credit check that was done on me. Granted, they're also going up significantly because of an accident I had. But the credit thing will definitely help.
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