Improper Credit Card Usage and How It Affects You
June 21, 2009 · Print This Article
At what point do credit cards go from being an asset to a liability? Everyone knows about the advantages that a credit card can offer. They can provide a buffer in the case of an emergency where you find yourself with no cash. They can be safer to carry around than cash.
They can function as a high-interest “loan” to yourself that you pay off over time. They can even be used to make investments, such as starting a business. Most people nowadays have at least one card and take advantage of these things; it’s practically a requirement for participating in today’s economy.
That said, however, there are just as many people who no longer see their credit card as a tool of freedom, but rather as an oppressive yoke cast about their necks that they’re forced to labor under against their will, regretting that they ever got involved with one in the first place.
If you’re starting to identify more with the second camp than with the first, what can you do to get back on track and find yourself in a place where your credit cards are working for you and not the other way around?
There are many ways to improperly use credit cards that can allow the situation to spiral out of control very quickly. One of the main things to keep in mind is just how many cards you have.
Having one credit card is an excellent idea; if you use it properly, it can confer all the advantages enumerated above, while also allowing you to bolster your credit by making on-time monthly payments. However, recent studies show that the majority of individuals currently have as many as five or six credit card accounts open at any one time.
How does this happen?
People will come up with an amazing number of ways to justify the matter to themselves, but whatever the excuse, this is hardly ever a good idea. Limiting your credit cards to one also limits the amount of trouble you can get into.
Late payments are another thing that you should definitely be keeping in mind as you use your credit cards. It can be very tempting sometimes to let a payment slide “just once”, especially if, like many people, you’re currently hurting for money thanks to the dwindling economy. If the choice comes down to buying medicine or paying your credit card bill, most people aren’t going to think twice.
But perhaps they should. In the long term, missing credit card payment can become an all too easy habit, because, generally speaking, credit card companies don’t really give you too hard a time about it… at first. Miss one payment, and you may only get a friendly reminder.
This is because they’re waiting for you to fall further and further behind, when they can begin to really rack up the profits on fees and interest, at which point you can be sure they’ll come after you.
Avoid situations like this with responsible credit card usage at all times. Remember – your cards exist to make your life easier, so why put yourself in a situation where they’re going to do just the opposite?
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Have you ever wondered why our school systems suck? People will watch shows like American Idol but can’t get up to make a complaint or question the government system. I woke the hell up it’s time you all do the same!
That's a good question! You have to wonder why some people would want to carry a balance on a credit card and pay finance charges when they have the cash to stay out of debt. Could just be habit, not caring about finance charges, stupidity….. any number of reasons.
On the other hand, a credit card is safer and more secure than giving out your debit card number. A debit card is tied directly into your bank account and a determined thief could wipe it out.
If you pay off your balance on a credit card every month, you won't have any finance charges. I suspect a percentage of the people you refer to actually do this. It also gives them a convenient statement of their monthly charges which could include business expenses.
“We accept credit cards” is a declaration that you must have come across multiple instances at numerous stores, grocery shops and other merchant outlets. This statement is usually escorted by a couple of stickers (Visa/Master card etc). Credit cards have transformed the companies and our lives to a great extent. A few years ago there were just a small number of stores that would acknowledge credit cards but today you’ll discover that most of the shops accept credit cards. Actually, some shops (like those belonging to a big retail chain) not only acknowledge credit cards but also supply credit cards. These credit cards entitle you for discounts whenever you use them at any from the stores of that retail chain.
they ask for ID everywhere… I think
I fear any place offering free IPhone is going to have some catch that is a definate downside –Iphone is not free, as Apple is still limiting who carrys the device. (allowing them to keep a higher price on it –that's not to say that it's not worth it's price –but, if they limit distribution on it, they do not have to give it away)
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from the interest rates you pay on loans and credit cards to the size … come to dominate the marketplace for credit scoring, for many. consumers a FICO score has …
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take it easy. mister skimmer. with a nickname like that. you are going to be in trial for treason, not robbery.
If you have no credit at all, you need to establish a good credit record. … try to get approved for retail credit cards (department stores) …
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New blog post: The Credit Cards Vs. Smart Phone Battle. Will Be A New Payment System? .
I have found that paying more than the minimum balance on your credit card and pay on time your fico score will rise dramatically in six months. missing a payment or not paying more than the minimum payment will destroy your fico score. I would not have more than two cards. paying more than the minimum balance is the key.
New rules went into effect Sunday that aim to give credit card users the chance to pay off cards without incurring massive fees for going over the spending limit.
Using a credit card to run your Adwords or Yahoo advertising accounts is a great way to cash-in off your business expenses! I've been doing the same thing for the past year or so – and since I do alot of advertising – I've already earned enough to take several trips – for FREE!
I use an American Express Gold Rewards Card. It's not a "credit card" since you pay the bill in full each month – but it's a great way to earn travel rewards without having to pay interest. Of course, if you think you might need to carry a balance every once in a while – or you'd prefer cash rewards – go for a credit card. Here's a great place to compare a wide range of business credit cards (including the AMEX Gold card I mentioned above):
I just wish I would have started using a reward card for my business expenses 3 or 4 years ago (when I first started advertising online). I could have probably seen half the world by now! Guess late is better than never!
Stop where you are. You don't need another credit card unless you're looking to go further into debt.
[Blog] can i use my debit card on xbox live as a credit card to get gold membersh…: there is only a credit option, but i heard that u can
75$ for a pair of new pants. How panhandlers use prepaid credit cards
connect that to a smart phone you bastard
you can use a gift card, there's no reason it wont work, and you dont need a credit card.
instructions: http://usitunes.blogspot.com
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Why not apply for a catalogue, like Kays or littlewoods. What they look for when looking at your credit history is not being up to your limit (meaning that you dont abuse your credit) and not missing a payment.
Therefore, buy something from a catalogue (or something on the credit card) and pay off the balance once the statement comes in.