Agreed. Credit cards just aren't the only way to establish credit. Imo, it's a good way but perhaps the riskiest way (for most people). As for the FICO scoring, mine is great without the use of credit cards. May not have credit cards, but have been consistently paying off some form of debt or another for quite some time now. Ahh, being an American is great.
very true. utility bills, mortgages, car payments all build credit. Even using a credit card you pay off at the end of the month works well.
That is not the justification. The tax is meant to return the assests to the deceased's original basis. Most of what is taxed by the estate tax is capital gaines. Paying the tax re-sets the basis. For example if a guy buys a 100,000 dollar investment in 1979 and when he dies it is worth $1,000,000. The inheritor does not inherit a $100,000 investment they inherit $1,000,000. The estate tax changes the basis for the new owner to 1,000,000. If they were to sell that property with the $100,000 basis they would pay capital gaines on any amount over that. If they sell it with the estate tax they only pay tax on its appreciation after they take ownership. I anticipate the current rules will be extended as they are best for everyone. Another note is that about 95% of people who the estate tax applies to favor it. This is especially true of the super rich.
If this is the justification then an estate which is 100% in cash would not be taxed at all. Is that the case?
That is a fair point, but I think the liklihood of that is really small. As it stands, with the 2006 numbers less than 1% of American estates would pay no inheritance tax at all. With the 2009 rules that number is under .5%.
The Debit Card changed a lot for me. I write a lot fewer checks and I rarely use the credit card. I mainly use the credit card while on vacation, just to spread the expenses over a few months and not impact my normal checking account balance too badly. I also have a high-limit card for emergencies and using it some every year keeps them happy, my credit good, my rate low, and my limit high.
Is there a difference between a bank card that is a debit card/credit card vs. a regular credit card? I always thought I could use my bank card (with the Mastercard logo) the same way I use any other credit card and it just comes from my bank account.
That has actually been my biggest stumbling block. However, I have found that Enterprise will not require it. However, it is still a hassle each time to convince them not to require one. Usually my argument is that my debit card has far more money backing it than most credit cards do.
They know the difference. I am not sure I know how they can tell, but I know for sure they can tell when they see the card.
