Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Paying off a credit card: disadvantages?

Options
  • 13-12-2012 12:21pm
    #1
    Seanchai
    Closed Accounts Posts: 1,401 ✭✭✭


    Quick question. If I pay off my credit card in full now leaving a balance of zero, and if it is stolen and used afterwards am I more liable for any losses as a result?

    I heard once that as long as you owe something on it you have some sort of insurance. Is there any truth to this?


Comments

  • Options
    #2
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    You are always covered for fraud regardless of the balance.


  • Options
    #3
    Doodah7
    Registered Users Posts: 3,753 ✭✭✭Doodah7


    There are no disadvantages to paying off your credit card. In fact you should always pay it off every month. Madness otherwise...


  • Options
    #4
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    unclebill98 wrote: »
    You are always covered for fraud regardless of the balance.

    Unless you have a credit balance!

    But for op - the whole purpose of a credit card is that you pay it off in full every month. The ability to leave the debt outstanding (or clock up a debt you can't fully pay off by next month's pay day) is purely for emergency cash flow situations and not for everyday usage.


  • Options
    #5
    Seanchai
    Closed Accounts Posts: 1,401 ✭✭✭Seanchai


    dotsman wrote: »
    Unless you have a credit balance!

    But for op - the whole purpose of a credit card is that you pay it off in full every month. The ability to leave the debt outstanding (or clock up a debt you can't fully pay off by next month's pay day) is purely for emergency cash flow situations and not for everyday usage.

    Ah, now that's alluding to what I had heard. Thank you. Does this mean that even if I pay €1 more into my credit card than I owe, and if the card gets stolen any debts on it will not be covered?

    What is the justification for taking away insurance cover if the credit card has money on it?


  • Options
    #6
    wench
    Registered Users Posts: 1,644 ✭✭✭wench


    Seanchai wrote: »
    Ah, now that's alluding to what I had heard. Thank you. Does this mean that even if I pay €1 more into my credit card than I owe, and if the card gets stolen any debts on it will not be covered?

    No, just for the amount you are in credit.
    It is mainly a problem for people who load up money on the card to withdraw as cash abroad.


  • Advertisement
Advertisement