When NOT to use your credit card

What’s the strangest thing that you’ve ever put on your credit card? I learned when to never ever pull out your credit card. Here are a few times from Yahoo Finance:

  • After midnight – Tends to be when people let it all hang out — even financially.
  • When you’re near your credit limit – You don’t want to be even within a couple hundred of your limit or your credit score will go down.
  • If you think you’re building your credit history – While your credit score goes up if you pay off the purchases you make, putting items on a credit card without paying them off will have the opposite effect on your score.
  • If you can’t pay for half of the purchase with cash on hand – Say you need new tires, if you don’t have half the money right now to pay for the repairs, wait until you do.
  • When it’s all about the rewards points – Rewards points should be nowhere in the equation for making that decision or not making it.
  • When you think prices may drop – For many things in our society, we’re starting to see deflation. If you think it’s going to cost less in three months, why start paying interest on it today?
  • To buy something from a website with an obscure foreign extension – Don’t charge online if you don’t know who you are dealing with. Study the website — watch for suspicious wording — to make sure it is legitimate.

By the way, why not shop local? If it needs to be ordered, our awesome local vendors can hook you up! I know cause I’ve used them for that service. Have a financially stable and secure weekend. – Justin

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Posted in Mark Grauer and tagged , , , .

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