7 worst things to do with your credit card

It takes years to establish good credit, but mistakes like these can destroy it quickly.

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VIDEO ON MSN MONEY

143Comments
Jun 12, 2014 10:12PM
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I use credit cards to check if my scissors is dull.
Jun 13, 2014 9:52AM
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I actually don't feel bad about using someone else's money by charging on my credit card each month.  That's about the only "pleasure" I get out of this world, instead of having people/companies using me as their "cash cows".  I pay the bill in full each month, so no problem. 
Jun 16, 2014 10:48AM
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The mere fact articles like this appear indicates to me that there should be a required high school class called, "Credit 101.  How, When, and Whether to Use Credit".  You don't get to graduate until you pass this class.
Jun 12, 2014 8:54PM
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Wow, this is a banner day.  Finally an article with suggestions that actually make sense.  Good job.  Now do one on people who think that as long as they have blank checks left in their check book, they have money in their checking account.
Jun 12, 2014 11:14PM
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Watch carefully to what the credit card companies are mailing to you. Those easily spent checks with no interest and 0-4% up front fees. Chase and Citi are running a 2% transfer fee and 18 months to pay off balance at 0%. Todays mail brought a black, stainless steel Visa card with horrid perks for $495.00 fee per year. Credit card business is way down and they are trying to entice folks to get back to the old spending ways. Caution, caution and more caution.
Jun 13, 2014 8:55AM
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There are only two purposes for credit cards, the first is as a convenience so you don't have to carry a lot of cash or a check book with you. When the bill comes, it's paid in full each month. The other is to use credit cards as an unsecured line of credit, when used in this manner your going to pay rates that cover the risks involved in lending you unsecured money. Millions of idiots just don't get it living far beyond their means buried in credit card unsecured borrowed debt ( the more you owe,  the greater the nonpayment risk) then they complain about sky high card rates.
Jul 11, 2014 7:15PM
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I've scraped frost from the windshield with it a few times.
Jun 13, 2014 1:02PM
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It's nice to have in an emergency, that's about it.
Jun 13, 2014 9:29AM
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The people who pull these stunts are the same

that:

 Facebook "I'm going on vacation!!!" "How'd my house get robbed?" 

and

    Text or e-mail unsavory  comments about someone & then hit the global-send.


Jul 11, 2014 6:15PM
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If you use it as a cash flow paying it all at the end of the month, nothing wrong with that scenario.  We did that for 50 years of married life.  If we did not have the money to pay at the end of the month we did not buy it.  NEVER NEVER NEVER paid one single cent in interest.


Jun 13, 2014 9:29AM
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In the hands of the X-to-be, during a divorce.
Jun 13, 2014 1:38PM
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Even hookers take payment with credit cards these days. MasterCard is the most accepted but they charged me, I mean, they'll charge you a slightly higher rate and an extra 1% for the processing fee. I had to, I mean, you have to ask them ahead of time if they accept it though because they usually expect cash and may even offer a discount if you pay before being serviced. Make sure to get a receipt if you do pay by MasterCard, else the hooker can claim the payment didnt' go through and will charge you a late fee, interest and penalties. She may even turn your account over to the collection agency and your credit score may take a hit and the collection agency will then hassle you. Then I had a, I mean, you'll have a hard time explaining to your wife why you had to pay the outragous fees, interest, and penalties and you'll have to call the credit card company to sort it out. Even when I, I mean, if you call the hooker back, the most she'll do is give you a buy one get the second of equal or lesser value free. I had no choice, I mean, you'll have no choice but to agree to her then. I guess she was pretty smart to get my repeat business, I mean, your business.  This is the last time I'm EVER going to her... this week (well, after my apt with her this evening  and tomorrow evening anyways). Not speaking from experiece though...

Jul 11, 2014 7:26PM
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When I opened my first credit card (early 90's) my mom's advice was "never, ever pay for life's basics with your credit card.  No groceries, gas, rent, etc."  Her point was that I needed to cover the basics with my income.  And the day that I could no longer afford the basics and needed to charge....then that was a red flag. 

Today, I charge almost everything in my life because I'm racking up some serious AMEX points doing so!  LOL.  But, I'm still heeding mom's advice....well, the intent of her advice.  Which was discipline.  Basically, my husband and I agree on our approach to paying off charges - ex: ongoing expenses paid off each month, vacations are budgeted and paid off before we actually travel, and furniture or other large items are also budgeted with a regular payment we commit to making each month (that is much higher than the minimum).

Again - the moral of the story is discipline.  If you don't have it, don't use credit.  Instead you should hoard cash and spend with your ATM/debit card.

Jun 13, 2014 10:35AM
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Don't forget cash. They typically charge you more interest if you take out cash than charge a product.
Jun 12, 2014 9:07PM
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Kind of already knew most of these. There is one I don't always agree with like sometimes a balance transfer is a good idea especially if it's a store card to a introductory interest free offer on a new card.
Jul 11, 2014 8:10PM
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When you use cash and I don't mean a debt card, you are faced with a choice at the time of purchasing. Do I value the merchandise in my left hand more than $100 bill in my right hand ?

There is more pain in parting with the $100 bill, than swiping the plastic. People would spend less and run up less debt if they had to part with something they valued at the time of purchase. 

Jun 13, 2014 3:23AM
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Pay them off in full and you won't ever be in trouble.

 

As for buying a business with them, it depends on the business of course.  It's not so easy as the article states to just go down and "get a business loan at a bank instead."   Banks are not lending like they did 10 years ago.

 

Many businesses have been funded by credit card cash advances, it's the ones that are shaky and with owners who don't have fiscal discipline that get in serious trouble.  If you partially finance a solid franchise with some of them for certain costs with the plan of paying them right back, it can be the only way for a lot of start ups.

Jul 11, 2014 6:51PM
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Excuses I have heard over the years for over using credit cards:

1. I didn't have any overtime last year and couldn't ask my kids to do without - it wasn't their fault!

2. I was laid off and it was a perfect time to take the kids to Disney World.

3. I lost my health insurance and couldn't afford therapy, but shopping made me feel better.

4. I have to keep up the imagine or people will know that I am struggling.

5. I needed a make over and new wardrobe before I went job hunting.

Jun 16, 2014 11:41AM
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Common sense advice. Personally, I don't live my life sweating some arbitrary number assigned me by the "Big Three". My wife had her ID ripped off one time, and we had nothing but months of grief trying to get it straightened out by the run around customer service of those agencies. They are horrible to deal with. I paid a lawyer to kiss them off, and don't even use a credit card. If I cant afford it, I don't need it. Keep your number.
Jun 13, 2014 10:17AM
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"Using too much credit"...

Either having "too much credit" actually and truly IS a good thing and MSN just got it wrong, or, I need to forward this one to Congress and Mr. President.
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