Is it possible that using your credit card in seemingly “regular” ways can get you in trouble?
Marcia Frellick, writing on Yahoo Finance (15 Times When You Shouldn’t Use Your Credit Card), points out 15 times that you should not use your little plastic friend. I will highlight 3 of the times that I find most interesting here with my take:
1. At a flea market – yes we all know that some sketchy people hang out in these types of places, but we all also know that some incredible deals can be found in flea markets. If you find that deal, use cash ok? You don’t want a vagrant merchant running around with your credit card number AND security code!
2.When you use it for the Rewards Points – come on folks, this is like the dingleberries who tell self employed people to buy something because they can “write it off,” or people who want to have a mortgage for the tax deduction. Just like it doesn’t make sense for most people to spend a dollar to get 30 cents back on interest, it doesn’t make sense to buy something on a credit card just so you can get the 1-2% of rewards credit. If you have regular purchases that you can switch to your credit card, like your phone bill, utility bills etc, then consider that because you are spending money anyway, but please people c’mon! No dumb mental calculations here ok?
3. If you are building a BALANCE to develop credit history – paying cards off builds a good credit history, as does long term paying and eventual paying off of a fixed loan such as a car or mortgage. But keeping chronic balances shows a creditor that it’s likely you’re broke!
If you want to see more reasons, some which focus on the psychology of purchasing items, go to the full story HERE.
For more of my thoughts on credit cards, read some of my *classic* articles including:
79% Credit Card – May Be a Good Idea
No More Credit for the Lower Classes
Credit’s Getting Tighter at Chase
Watch Credit Card Due Dates After Your First Purchase
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