Introduction: Credit Card Dirty Secrets
Hello and welcome. So you want to some credit card dirty secrets? Well, buckle up because this may be a rough ride. For the credit card companies, that is! Here I go again, shooting myself in the foot to bring you quality facts. My list of the top 10 secrets involving credit cards will be discussed. Bookmark our page for more dirty secrets of the credit industry to be released at a later date!
Credit Card dirty secrets #1: Credit Score vs Interest Rates
First, many of you already know an important fact. The better your credit score, the lower your credit card interest rate. So only apply for credit cards when your score is at peak. The same basic file can get 25% interest rate or a 0%, 14% interest rate! It all depends on credit score at the time of application. At our home, we throw out many pre-approved credit card offers. Because many of the interest rates are too high. If you watch your pre-approved offers closely you will know when to take an offer.
Credit Card Dirty Secrets #2: Hidden Fees
Secondly, many credit cards have hidden fees. You may easily miss these when taking a card offer. This is intentionally set up this way. You have to look deeply through your offers to find them. One section to check is annual fees. I have never taken, and will not take, a credit card with an annual fee. The entire premise is just wrong. Because I do not care if it is a platinum card or in any other fancy packaging. If it charges me every year it is not worth the plastic it’s printed on! Other hidden fees to watch for are high-interest rates, high balance transfer fees, and never take cash out! Watch those interest rates!
Credit Card Dirty Secrets #3: (Obsolete) Credit Blitz
Thirdly, as I was building my credit file I was trying to discover credit hacks. So, I set out to acquire as much credit as quickly as I possibly could. I found many credit card applications online. Filled them out but did not submit them. Literally had 20 applications at once all in different tabs! I thought there was no way this method would actually work. I ended up getting 12 credit cards from this spree! Later I repeated the same process and got another 10 cards! However, this credit hack has now been patched. At last check, each credit inquiry now registers in milliseconds, not seconds. So I am sorry to say you can not use this hack anymore, but it worked for me!
Credit Card Dirty Secrets #4: Inactive Accounts
Fourth, another dirty secret we need to discuss is inactive accounts. Since I have many credit card accounts I do not use them all. Many accounts sit collecting cobwebs. This is not a major problem but you should use each card for a small purchase and pay off every year. I had always heard that but never applied it. So I got one of my cards a $800 gas station card closed! Really liked having an extra $800 fuel card for emergencies. Well, learn from my mistake there and keep your accounts active!
Credit Card Dirty Secrets #5: Authorized Users
So you will want to be authorized user on any credit card anyone else has. Ask around, do not be shy. These authorized user accounts can greatly boost your file! Find friends and family with aged credit cards. This means any card with a longer positive history. The more of these accounts you can be on the better. Do not accept any of the actual cards, you only want the credit file boost from them.
Credit Card Dirty Secrets #6: Hard Inquiries
Most credit cards do a hard inquiry on your credit file when you apply. However, if you look carefully there are pre-approved credit card offers. Even if you do not get them by mail. Look online for pre-approved soft inquiry credit cards. Several leading sites offer to check to see if you qualify without harming your credit. I will no longer do any hard inquiry without knowing if I am approved first. Hard inquiries stay on your file for two years. Also, they tend to damage your credit score about 5 points each!
Credit Card Dirty Secrets #7: Minimum Payments
Do not ever make only the minimum payment. But do not take my word alone. Look at your statement. Hopefully, you can see the reason why now. Mine says if I make only the minimum payment it will take 15 years to pay off! Compare that to $100 over minimum payment and under two years! So I can save 13 years of payments if I pay a little more now? Sign me up! Be sure to keep your payments as high as possible. Debt is not a good thing by any means. You want as little as possible at all times, so pay it down fast!
Credit Card Dirty Secrets #8: Easy to overspend
So many people who get a credit card do not use it correctly. It is not a means of keeping up with others. Neither having a credit card nor using it will make you rich. These things actually make you poor. Because credit is really debt hiding under a fancy name. Because when you just swipe your money away it is easier. Try to spend in cash. Because that is a great way to be far more conservative!
Credit Card Dirty Secrets #9: Chargebacks
I cannot recommend doing many chargebacks. However, sometimes they are necessary to keep your money. If you buy goods or services with credit and they are bad this can be an excellent defense. Say you accidently give money to a scam. Or, that awesome expensive present you buy your child turns out to be a lemon. Your credit card can catch your back in these situations. My credit card returned the money I was scammed. Also, once more when we bought a defective expensive model remote control car. They can be difficult to do, be sure you have lots of evidence supporting your claims. However, I have won my money back against two scammers that both stated they do not give refunds. I love Synchrony Bank credit cards for catching my back! Finally, never do more than one chargeback per card in a year.
Credit Card Dirty Secrets #10: The 0% Interest Offer
While not paying interest is an attractive option, it is dangerous. First, the main danger is when you know you have no interest due some get lazy making only minimum payments. Another main problem I noticed is when people know there is no interest they overspend. This is a trap that catches many. Even some with great credit as well. Here is how the scam goes down: You get a 0% interest credit card. So you feel rich, you spend out too much money. Then the bill comes due and you make the minimum payments not fearing the interest. Before long there is a very high minimum payment including interest. Also, if you miss even one payment the 0% interest can quickly turn into 35% interest! Beware of these scams!
Credit Card Dirty Secrets- A Conclusion
To conclude, there are many credit card dirty secrets. I hope you have found my list informative. Do you know of any more? Please share them with everyone below! Because the more pitfalls we show the less fall into their traps. Wishing you the best credit and life possible! Be sure to bookmark my site to stay up to date! For more great reading check out my awesome blogging Buddy Crystal’s Blog, my Evolution article, my motivation quotes pt2, and Be Your Own Light Blog. Thanks for reading!