debit vs credit on banking transactions?
We use our debit card for most purchases since we can follow our expenses more closely in our bank account and also can find to itemize some expenses for taxes.
I understand the fees that are charged to merchants if you use your bank card as a credit vs a debit and banks prefer this. But here is the deal, since a debit is instant, you can go online and see it pending with the amount deducted from your account which my husband does daily to check his balance.
About a month ago, we made about 4 debit purchases on a Tuesday and Wednesday. We saw those amounts on those dates pending and deducted to the balance. My husband mailed a check on Wednesday evening for the mortgage figuring it will get to the loan company on Friday and be posted to our account. He was also expecting a check to be deposited either Thursday or Friday so thought it should be covered. Well, guess what, the check he mailed hit his account on Thursday evening around Midnight instead causing about 4 debits to be NSF. So they take the check and then show all the previous debits that had posted the 2 previous days to be non-sufficient and we got hit with the fees on Friday morning.
Granted my husband was an idiot to not wait till that deposit check hit the account before mailing it, but in all of our years, could not believe that these debits were posted after the check he wrote and then shown as a nsf and previously shown in the pending and deducted.
Could someone explain this to me that makes any sense? My husband will be talking to the bank today and see if they will adjust this or not, since this is the 1st time this has happened to us.
Any insight will be appreciated
Banks process debits in order from large to small. This is ostensibly so your major transactions, like mortgage checks, do not bounce–but it also allows the banks can maximize their NSF fees. Much easier to use a credit card, IMHO. You know when the bill is due, and then you debit your account exactly once, to pay the bill–no worrying about when checks will hit, authorized vs. Posted transactions, available balance vs. Actual balance, etc.
“…these debits were posted after the check he wrote and then shown as a nsf and previously shown in the pending and deducted.”
Were they pending, or had they posted? Given the time frame, it is entirely possible they didn’t post until Friday. There’s no hard and fast rule on when authorized transactions post. Nor can you be sure that your account will be credited on the day a check is deposited…if it is large, they might hold it until it clears.
Has anyone ever heard of a mortgage company withholding your payoff balance for 7-10 business days?
We are in the process of selling our home and recently found a buyer relocating from CA. to KS. with a closing date of Feb 7th. When we called Citi Residential Lending (where our home loan is thru) we were told that we would have to make a request in writing and it would take 7-10 days. The title company faxed a signed request and 3 days later we still can’t get anyone from Citi to verify the request is in process. Based on previous experience of selling a home – I was able to get my payoff balance immediately upon request – not a 7 day waiting period. And don’t even get me started about how rude Citi has been – not only to us but the TITLE company who is sending them the check. We have contacted the Better Business Bureau & the Kansas State Attorney General & the Kansas Banking Commisioner (who Citi falls under) no help! Any suggestions???? or comments would be appreciated!
Usually you get it by fax right away. Apparently they don’t want you to pay it off. There should be an agency in charge of Mortgage Companies. That is who you need to contact.
What are mortgage companies actually looking for when they check 3 months of bank records?
Hi I’m looking to get a VA secured mortgage. I know my credit will not be much of an issue in getting pre-approved, but will it matter that I don’t have any money set aside in savings and checkings? What about having my checking account go in negative, will this have an affect? For the house particular house that I am looking for, seller will pay the maximum of the closing cost allowed, and the remaining balance will be gifted from a relative, so I will probably be able to do this with virtually no money, which is exactly what I have in my bank account. Will my bank account be an issue even if my credit is good and the mortgage is well below my maximum approval?
We just used my husband’s VA loan and they are looking for no negatives, verification of deposit, and we had to have a balance of 1900, plus they will want letters if there are large deposits that werent direcet deposited …we have great credit, and our mortgage was 18,000 below our approval amount
Can I get a mortgage if my only income is a disability check and a small pension?
I own my home free and clear, paid off in 14 years. It’s current market value is about $250k. I own three vehicles, valued at a total of about $25k. My monthly income is about $1650 from disability and a small pension. Not much in savings. Credit score above 755, maybe over 800. No debt except a tax debt balance of $7k remaining from an original $28k obligation being paid off until about December 2012. I want to rent out my home, which could bring income of about $1600. (Zillow estimates $1800), and I want to buy a bank foreclosed house for about $50,000, it’s value being much higher that the asking price. I can put down about 5% to 10%, make this next house my primary residence, and pay it off in 10 years. Given that my handicap affects my ability to earn the kind of livelihood I once used to make, can I still secure a $50,000 mortgage? And if I can get a mortgage, I am thinking of buying in and moving to a state different from where I now live. That being so, should I seek a mortgage in the state where I’m buying, or should I try with my first mortgage lender here at home with whom I do have an excellent track record? Thanks for any suggestions.
Added question: Is buying another house with a Home Equity Loan or Line of Credit a wise option?
Added question: I’m sure I can demonstrate the ability to repay. Now aren’t there clauses in the Americans With Disabilities Act that direct a lender to not cite disability as a reason for loan refusal?
You would have to take a mortgage on your paid off home and use that cash to buy the new house
i lost my atm card, will i get my money back?
i lost my atm card in new york last night and when i check the balance today i found out that someone use it to buy stuff and got overdraft. I reported that my card was lost. Will i/they be able to know who use my card? They use my card at marshall and target. and will i get my money back? that money suppose to go on my mortgage and electricity. I feel so stupid.
If you reported it in good time once the card company confirms the purchases were not made by you, you will get full credit for the amount.
Keep in touch with the card company, push them to get the account straight so you don’t have problems with other payments.
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