5 credit card mistakes to avoid
Unwise or irresponsible use of a credit card can wreak havoc on your finances, especially if you commit these potentially costly errors.
VIDEO ON MSN MONEY
If you dont have the money already in your pocket to spend, then don't use the card. If you're going to be stupid and charge money you don't have and can't pay off the bill then you basically screw yourself.
Interest rates don't mean anything as long as you do the smart thing and don't carry a balance.
I'm 23 and have had two credit cards for over two years and never had a bad experience.
Sophomoric article - parents should have told their kids this stuff at 15. There is so much information about how to use credit to your benefit that most people don't know and this article doesn't touch on any of it. 1. Don't close accounts. 2. Use credit cards. 3. Pay them off every month or more often. 4. Get your credit reports yearly or pay to get them monthly. Understand credit limit in terms of credit score.
Transam is right,people who say not to use cards or only have one or the banks rip you off are dumb. They probably shldn't have any cause they don't know the basics of low financing.
So far this year I.ve redeemed over $750 in perks and lots more with rebates & such. I have way more then 10 cards, have maxed out several, never pd late, don't pay any more then 3% interest on any(cept 09 car loan that the cheapest rate was 4.9 at time) of my loans or cards. have excellent credit (13 new car loan1.9%) and still get appl for new cards every week. Credit is great. Banks are out there to make money and as long as there are stupid people who break their agreements with banks by paying late, over drawing, bouncing checks and whatever, that makes it much more possuble for banks to reward the people who know how to usr credit.
Remember, banks don't really care if you pay off every month, what they want is for you to use it cause they make 1-2% profit every time its used, no matter whether you pay off or not(of couse they love it if you carry a balance).
OPinion1, you would be a fool not to save 15%,especially if it was a lot of money. You fall to these bozos who write these kinds of articles. Consider this, a while ago they wrote articales about how you shld close inactive cards, it looks like you have an opp to spend to much, this hurts your credit; later new articles come out saying don't close accts cause that incr your % owed to balance, that'll hurt your credit; then later they give new reasons why you shld close accts,and so on and so forth. These writes are like appliance & furniture makers. You're passe if you have avacado colored appl or clothe sokas. You gotta get with it and get stainless appl and leather couches, but now you must change to black appliances, dark colored kitchens and suede sofas. Then it'll be back to avacado(I hope not) appl and clothe sofas.
What really matters is how you manage your cards/loans/bank accts and not really how many'. Follow your instincts and you'll make money with these, and won't get into trouble
Credit cards are good for three things as far as I can tell. Getting airline tickets and renting cars. Building a credit score. Dealing with SHORT TERM cash flow problems. (Maybe that's four things.)
I've read a lot of good comments here. For me it boils down to this. Credit is like fire. It's very useful and can improve your life if used properly. Use it improperly, and it will burn your house down.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
RECENT ARTICLES ON CREDIT CARDS
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'