10 Common Mistakes In Holding Credit Cards

fluffysamantha · 03-18-2008, 07:15 AM

1. Overspending
2. Taking out cash
3. Paying only the minimum
4. Being late or missing payment
5. Not shredding credit card receipts
6. Not checking your credit card statement
7. Throwing away expired credit cards
8. Applying for a very large credit
9. Applying to different credit card companies at once
10. Maximizing your credit

More Details on 10 Common Mistakes In Holding Credit Cards

kav122 · 03-18-2008, 07:44 AM

for me it is

1. having one at all

rstlne · 03-18-2008, 08:54 AM

A credit card is just a tool. It can be very useful but in the wrong hands, it can be destructive too. I use mine mostly for online payments and E-ZPass tolls.

hermione · 03-18-2008, 02:58 PM

We use our credit cards to make us money: earn cash back and keep money in the bank longer to earn more interest. And for shopping online and paying bills online to save money.

Credit cards really are a great tool as long as you can manage it and remember that just because you don't see the cash leaving your hands doesn't mean it's not money.

Basic rules:

Don't spend money you don't have (in the bank to pay in full each month)
Spend only what you need.
Just because you have a $12,000 credit limit doesn't mean you are obligated to spend $12,000.
Instead, save the high credit limit for an emergency.

I've written a couple of articles about how you can save/earn money using your credit cards in case anyone is interested.

Credit Cards Really Aren't So Bad
Includes the ways we save and make money by using our credit cards (and not by credit card arbitrage)

Pay Bills Online and Save
We save about $60 a year just by paying our bills online and we're a small household - 2 single girls and 2 dogs. So families with children and more bills and save a lot more.

Banker101 · 03-20-2008, 01:22 PM

Working for a bank I can tell you that you neither help nor hurt your credit by paying off your statement balance in full each month. If your in it for the rewards then paying off your balance in full is the perfect marriage. But If you make payments on your balance, then you are demonstrating that you are a responsible borrower. The only catch is if you make payments your going to have finance charges. So the best thing you can do is wait for a promotion, and transfer the balance into an interest bearing account. Keeping the interest, and using the balance in the interest bearing account to make the payments. Balance transfers are redundant to your credit otherwise. And if you don't use your $15,000 line of credit reduce it to $10,000. But make sure that reducing your credit limit won't cause any effects on your checking account. Some banks give you the best account they have if you have a certain credit line with them. Never max out your card unless you pay it down substantially on the next statement. Oh and remember if your paying finance charges and want to pay off your balance - you need a balance payoff quote in order to zero out your account.

FitandFrugal · 03-27-2008, 08:51 PM

hermione, I think I love you. (not in a creepy, stalker way, don't worry). That's exactly how we use our credit cards, too, so obviously I don't think they're the devil.

kav122 · 03-28-2008, 03:39 AM

just to clarify: I don't think that (for anyone) having a credit card is bad. For ME having a credit card is bad. Everyone knows their limitations. Some people can restrain themselves. Some people can't. I have a feeling that if I had a cc, I would overspend. I think the key is knowing yourself, and not being delusional to how you spend money.

StudentMom · 03-28-2008, 04:34 AM

Quote:

Originally Posted by kav122

just to clarify: I don't think that (for anyone) having a credit card is bad. For ME having a credit card is bad. Everyone knows their limitations. Some people can restrain themselves. Some people can't. I have a feeling that if I had a cc, I would overspend. I think the key is knowing yourself, and not being delusional to how you spend money.

I totally agree with this. CCs are a big no-no for me, it'll take me years to pay off the ones I have now. However, digging myself into this pit has been the best life lesson so far.

fluffysamantha · 03-28-2008, 08:10 AM

well, we have our own opinion guys.. thanks for sharing your thoughts about this..

The Honest Dollar · 03-28-2008, 09:00 AM

I agree with rstlne and hermione - credit cards are tools. They can be used for good, and they can be used for evil.

Some people are debt junkies, and like an alcoholic should avoid drinks, they should avoid credit cards.

But some people are responsible credit users, and having cards help them save money by earning cash back (effectively a discount on spending, assuming that they don't charge more than they would without cash back rewards), by lowering interest rate on debts (when they have good, long credit histories and a high limit-to-debt ratio), and by floating debt so they can earn interest on cash.

I have problems with the anti-CC crowd who think credit cards are absolutely evil and people are dumb for having them. I also have problems with the pro-CC crowd who think those who refuse to use credit cards are idiots for not taking advantage of essentially an interest-free loan (if you pay off your balance with every statement).

Why can't we all just understand that some people have very valid reasons for avoiding credit cards, and other people have very valid reasons for using cards? It's not black and white.

(By the way, I'm not saying anyone on this thread is part of the anti-CC or pro-CC crowd I mentioned above. Y'all have been quite civil.

)

03-18-2008, 07:15 AM	#1
fluffysamantha Junior Member Join Date: Feb 2008 Posts: 16 Reputation: (10)	10 Common Mistakes In Holding Credit Cards 1. Overspending 2. Taking out cash 3. Paying only the minimum 4. Being late or missing payment 5. Not shredding credit card receipts 6. Not checking your credit card statement 7. Throwing away expired credit cards 8. Applying for a very large credit 9. Applying to different credit card companies at once 10. Maximizing your credit More Details on 10 Common Mistakes In Holding Credit Cards __________________ [URL="http://www.buildingcreditforstudents.com"]Credit Cards for Students[/URL] won't hurt if used PROPERLY and RESPONSIBLY it's a good start to build your credit. :cool:

03-18-2008, 02:58 PM	#4
hermione Senior Member Join Date: Jan 2008 Location: California Posts: 235 Reputation: (48)	We use our credit cards to make us money: earn cash back and keep money in the bank longer to earn more interest. And for shopping online and paying bills online to save money. Credit cards really are a great tool as long as you can manage it and remember that just because you don't see the cash leaving your hands doesn't mean it's not money. Basic rules: Don't spend money you don't have (in the bank to pay in full each month) Spend only what you need. Just because you have a $12,000 credit limit doesn't mean you are obligated to spend $12,000. Instead, save the high credit limit for an emergency. I've written a couple of articles about how you can save/earn money using your credit cards in case anyone is interested. Credit Cards Really Aren't So Bad Includes the ways we save and make money by using our credit cards (and not by credit card arbitrage) Pay Bills Online and Save We save about $60 a year just by paying our bills online and we're a small household - 2 single girls and 2 dogs. So families with children and more bills and save a lot more. __________________ [URL="http://ourfourpenceworth.com"]Our Fourpence Worth[/URL] - Tips for personal finance, frugal living, fast & frugal recipes, pet care & home decor.

03-28-2008, 08:10 AM	#9
fluffysamantha Junior Member Join Date: Feb 2008 Posts: 16 Reputation: (10)	well, we have our own opinion guys.. thanks for sharing your thoughts about this.. __________________ [URL="http://www.buildingcreditforstudents.com"]Credit Cards for Students[/URL] won't hurt if used PROPERLY and RESPONSIBLY it's a good start to build your credit. :cool:

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03-18-2008, 07:44 AM	#2
kav122 Senior Member Join Date: Dec 2007 Location: Minneapolis, MN Posts: 362 Reputation: (141)	for me it is 1. having one at all

03-18-2008, 08:54 AM	#3
rstlne Senior Member Join Date: Jan 2008 Location: New Jersey Posts: 338 Reputation: (100)	A credit card is just a tool. It can be very useful but in the wrong hands, it can be destructive too. I use mine mostly for online payments and E-ZPass tolls.

03-20-2008, 01:22 PM	#5
Banker101 Junior Member Join Date: Mar 2008 Posts: 5 Reputation: (16)	Working for a bank I can tell you that you neither help nor hurt your credit by paying off your statement balance in full each month. If your in it for the rewards then paying off your balance in full is the perfect marriage. But If you make payments on your balance, then you are demonstrating that you are a responsible borrower. The only catch is if you make payments your going to have finance charges. So the best thing you can do is wait for a promotion, and transfer the balance into an interest bearing account. Keeping the interest, and using the balance in the interest bearing account to make the payments. Balance transfers are redundant to your credit otherwise. And if you don't use your $15,000 line of credit reduce it to $10,000. But make sure that reducing your credit limit won't cause any effects on your checking account. Some banks give you the best account they have if you have a certain credit line with them. Never max out your card unless you pay it down substantially on the next statement. Oh and remember if your paying finance charges and want to pay off your balance - you need a balance payoff quote in order to zero out your account.

03-27-2008, 08:51 PM	#6
FitandFrugal Junior Member Join Date: Mar 2008 Location: Northern CA Posts: 9 Reputation: (10)	hermione, I think I love you. (not in a creepy, stalker way, don't worry). That's exactly how we use our credit cards, too, so obviously I don't think they're the devil.

03-28-2008, 03:39 AM	#7
kav122 Senior Member Join Date: Dec 2007 Location: Minneapolis, MN Posts: 362 Reputation: (141)	just to clarify: I don't think that (for anyone) having a credit card is bad. For ME having a credit card is bad. Everyone knows their limitations. Some people can restrain themselves. Some people can't. I have a feeling that if I had a cc, I would overspend. I think the key is knowing yourself, and not being delusional to how you spend money.

03-28-2008, 09:00 AM	#10
The Honest Dollar Member Join Date: Dec 2007 Location: New York Posts: 90 Reputation: (63)	I agree with rstlne and hermione - credit cards are tools. They can be used for good, and they can be used for evil. Some people are debt junkies, and like an alcoholic should avoid drinks, they should avoid credit cards. But some people are responsible credit users, and having cards help them save money by earning cash back (effectively a discount on spending, assuming that they don't charge more than they would without cash back rewards), by lowering interest rate on debts (when they have good, long credit histories and a high limit-to-debt ratio), and by floating debt so they can earn interest on cash. I have problems with the anti-CC crowd who think credit cards are absolutely evil and people are dumb for having them. I also have problems with the pro-CC crowd who think those who refuse to use credit cards are idiots for not taking advantage of essentially an interest-free loan (if you pay off your balance with every statement). Why can't we all just understand that some people have very valid reasons for avoiding credit cards, and other people have very valid reasons for using cards? It's not black and white. (By the way, I'm not saying anyone on this thread is part of the anti-CC or pro-CC crowd I mentioned above. Y'all have been quite civil. )