Thu 9 Oct: banking and cards

A trip to the bank
With the SSN in hand I went back to First Tech to enable online management on my account. After online is enabled, the mobile apps will work. I'm not sure if this needs to be in sequence, but that's what I did.

Credit card is a slower process. I filled in the application on the spot. At the end of the day I received an email stating that the credit card was approved. Card delivery will take about 2 weeks though. That's slow, comparing to how I got my Citibank card in Singapore in one hour's time - delivered to me via courier at the mall where I signed up.

Credit cards are important
It's almost critical for the working man to hold on to a credit card, and use regularly. This is the basis for establishing credit score. When you want to obtain a loan from a bank, this score will determine your interest rates.

Use the card. Pay on-time. Use it for groceries, gas, shopping. Remember to pay on time else the bank will slap late charges. Pay in full else the bank will slap interest. The card is your friend, but the card can also sink you very quickly.

Card security
Cards are very widely used in the US. You swipe a card to pay for the trolley at the airport. Only cards are accepted for parking at the airport - cash is not accepted. Food trucks accept cards. You can be a merchant by buying a card reader for transaction from Amazon for only USD 10 (http://www.amazon.com/Amazon-Local-Register-Secure-Reader/dp/B009AMF5XG).

Of course by cards I mean both debit and credit cards.

The thing to know about cards is that in some places a transaction can happen with your card without requiring your PIN to confirm. I was at a fancy restaurant where I paid with my debit. All I needed to do was to sign on the receipt with the amount to pay (including the tip). I didn't have to PIN in when I used it to pull out a trolley at the airport.

As a general rule avoid using debit.

Account security

2-factor authentication (2FA) is not a mandatory standard for online and mobile account management. Took me a while to get used to having a token to log in at home. And now without one it does feel...vulnerable.