Manage Your Life
Thursday, November 26, 2009
4 things you should never do with your credit cards
partner
- by Redbook, on Mon Oct 26, 2009 9:50am PDT
Susan McCarthy, a financial
adviser in Oklahoma City and author of
The Value of
Money, lists her top four
credit card don'ts:
1. Don't make only the minimum payments. This
stretches out your payment and, thanks to the interest,
significantly increases your overall cost.
2. Don't carry too many cards. Multiple cards
make it easier to
rack up debt because it's
harder to keep track of your spending. Having lots of cards
isn't necessarily bad for your credit, but misusing them is. So
limit your plastic to two national cards (store cards often carry
higher interest rates) that you
manage carefully.
3. Don't miss payment due dates. Not only will
you be hit with a late fee-as high as $39 on some cards-but your
interest rate could also jump. Sign up for online banking or pay
over the phone if you're
up against the deadline. (You may pay a
processing fee, but it will probably be less than the late fee and
the possible interest-rate hike.)
4. Don't take cash advances. These advances
generally come with sky-high interest rates and service fees,
making them a far too expensive way to get cash. Avoid at all
costs.
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Reprinted with permission of Hearst Communications,
Inc.
Related: spending, shopping, financial, finance, debt, credit cards, credit card debt, budget
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Posted by GirlyGirl© Fri Oct 30, 2009 4:45pm PDT
Don't have any! We're not paying that amount of interest...Cash talks.
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Posted by Daneil Sun Nov 1, 2009 3:40am PST
Yes the credit card , if take cash the fee is so high,
but the creid card is famous in china in 2008-2009 year,
so some more need noted
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Posted by Goldwing Sun Nov 1, 2009 11:37am PST
Use credit cards ONLY when you can pay off the entire balance by the end of the month! IF you cannot do that, you do NOT need what you are buying that badly! Using credit cards to buy what you cannot afford is a great way to find yourself in a financial disaster! If you cannot buy with cash, you really do not need what you are buying...do you? There is a big difference between "need" and "want."
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Posted by homecook Sun Nov 1, 2009 11:56am PST
I agree Goldwing 110083 - seems simple, does it not? But plenty of people do not know how to live within their means, living only for the now. It comes back to bite them in the end....
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Posted by Nicole Sun Nov 1, 2009 12:54pm PST
Only trouble that you have when paying off your credit card every month is that it ruins, yes I said ruins, your credit. Credit card companies negatively report you because you aren't showing that you are a good credit risk. The best advice is to pay it off over six months. That way if you want to make a major purchase in the future your credit is built up and you show that you are responsible. Oh and not using your credit cards can also hurt you! Go look it up!
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Posted by Crystal Annlin McClen Sun Nov 1, 2009 3:55pm PST
now if only my mum knew that... (she got me a credit card i DIDNT want, so she makes the payments) because i cant use it (over the limit) and its still growing over the limit and im not even using it and shes making the minimum payments!!!! geez great, and these are the REASONS I DIDNT WANT A CREDIT CARD!!!!
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Posted by Preston Sun Nov 1, 2009 8:26pm PST
11/1/09, The reason we all carry cards is so not to carry cash. The caveat is the mind doesn't process transactions the same as if one uses cash. We all tend to spend more than if the cards were not there.
As far as credit-rating & paying in full, pay in full; trust me.
When it comes to credit "scores", I don't need no stinkin' credit score.
I get anything within my means on just my signature. How's that?
When I bought a new Caddy,8 years ago, I said to the dealer: I'll put up 1/3 of purchase price & finance the rest w/ GMAC; they said OK, take delivery in a week. I'm still driving it. Save thing with my house.
Don't be intimidated by credit scores; it's your name that counts.
E-me @: p.weiters@yahoo.com (comcast.net), FBK,TW. ....Caio!
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Posted by Ms. Riverlady Mon Nov 2, 2009 10:08am PST
Keep it in a safe place and use it only for emergencies.
If you don't have it in your bank account...you can't afford it...and probably don't need it....Go to the park, walk your dog, read a good book..buy yourself a yummy treat.The urge to spend will go away I promise.
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Posted by ronnie goh Mon Nov 2, 2009 11:31pm PST
Ya i greed with two cards and its really more than enough.
As fof make payment without fail when meeting due date,you could post dated before due date, as this will allay your worry forgetting to pay your bill.
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