by Jada B.
Oh no! You're out shopping with your friends and suddenly your credit card gets declined! You quickly call your bank provider and soon learn that you have maxed out your credit line (the amount you can spend) and you have a missing a credit payment. Suddenly you are charged with a penalty interest rate and fees which not only cost more, but lowers your credit score if you are not following through with your payments. Here I am going to help you avoid these problems that some may experience when owning a credit card.
If you are trying to avoid debt or get out of it, making debt elimination a priority is something that can benefit you financially. According to ZenHabits.Net, If you save your paychecks in your checking account for a month and only use your credit card for emergencies then you could set a budget lower than your monthly pay which will not only help you pay off your debt on time, but will also help you save your money. Building your credit score can allow you to take out loans later for emergencies, and allow you more money and time to pay it back. If you don't already, setting an overall budget with your credit card can benefit your credit score and help avoid credit card problems
Many people make impulsive purchases so they can get an item right away. Making sacrifices and buying with only cash can really benefit your credit line and the amount that you need to pay off. For example, if you are shopping and want to buy a pair of shoes that cost $50.00, it is totally possible to save up $50 in cash to buy the shoes later rather than charging your credit card right away. Saving up for an item that isn't necessary in cash can really help you limit the overall amount of impulsive purchases and can provide more balance on your credit card. This will allow you to not have to pay off as much by the end of the month.
Avoiding a credit card cash advance at all cost will really help you stay out of credit card debt. According to TheBalance.com, all Americans in total carry around $4.2 trillion in credit card debt. A lot of this debt is caused by card cash advantages, which is basically like taking out your own loan at an ATM. Doing this will require you to pay a “cash advance fee” which is more expensive than a regular ATM fee because credit cards are most likely to be priced differently. Overall, cash advantages are one of the most expensive types of credit card transactions and is something you should try hard to avoid.
6 Habits to Overall avoid credit card problems:
- Read the fine print of your credit card and understand your limits.
- Stick with having only 1 credit card. You don’t need to pay off more than you already have to.
- Don't miss any monthly payments
- Keep track of your credit card purchases
- Stay on top of the budget that you should create for yourself.
- Think before buying. “Is this something I really need?”
Works Cited
Irby, LaToya. “Why You Should Never Get a Credit Card Cash Advance.” The Balance, 30 July 2020, www.thebalance.com/why-you-should-avoid-a-credit-card-cash-advance-960036.
Little, Kendall. “7 Reasons Credit Cards Are Declined.” Bankrate, www.bankrate.com/finance/credit-cards/reasons-credit-card-declined/.
Staff, FindLaw. “Avoiding Debt.” Findlaw, 16 Apr. 2021, www.findlaw.com/bankruptcy/debt-relief/avoiding-debt-credit-card-do-s-and-don-ts.html.
I thought your post was very informational, and I never really thought about getting my credit card declined. Many people don't realize that there is a limit on credit cards, and with making too many impulse buys they can reach that limit. Your facts, and steps to take to avoid this were really good and I am definitely going to make sure I use the 6 habits you listed to avoid credit card problems. Well done!
ReplyDeleteThis blog was really helpful to know about the different way people get into credit card debt and how there are simple steps that anyone can take to not have credit card debt. The 6 “habits” that were listed were easy to understand and literally anyone can do those and save lots of money. I like how you were able to fit a lot of information into the blog and still have a good understanding of the problems and solutions.
ReplyDeleteThis is incredibly helpful. Some of these problems I didn't even know about. But going out and not having money on your credit card is one of some peoples biggest fears. I also know a lot of people who use their credit cards exclusively and barely ever have cash on them. If they knew that using cash would help their credit and savings so much, maybe they would save up more.
ReplyDeleteAs a shopper myself, I found these tips very useful and some of them I had never really thought of. For example, I liked how one of your tips was to just pay for an item in cash and possibly save some money when going shopping to avoid any detriment to your credit score. I think following that rule could make a very positive impact on my credit score when I shop. In addition, I thought it was smart to list out specific tips and the end of your blog to wrap it up. It personally helped me take something away after reading. Overall, you did a great job!
ReplyDeleteI really find this blog usefull. We have learned about these strategies throughout our class and everywhere you look they give you these strategies. I feel like if you were to do these things you would run into no trouble. I am confused why people don't do these simple tasks and keep getting in credit trouble when most people know of these strategies. One thing I disagree with is only using your credit card for emergency purposes only when in debt. You gave good reasoning with impulsive buying but if you have alot of debt that takes years to pay off like student loans you will have to pay way more interest if you can't get your credit score up. Overall you gave some very good strategies people should follow.
ReplyDeleteI really liked your post as it gave me insight on what it would be to own a credit card. These cards can get declined, and seeing how important it is to regularly pay off your payments on your card, it only goes to show how important a credit card is. I have never had a credit card, but plan on having one in the next couple of years, this blog have me some before pointers that will possibly save me in the future!
ReplyDeleteA credit card is called a credit card for a reason, it helps you build your credit by paying it off over time, and many people abuse a credit card and aren't realizing the effects. Im glad you made a blog about this because many people are oblivious to this type of thing. Overall the blog was great!
ReplyDeleteThis topic is coincidentally what I was just the other night discussing with my father about. Opening credit is something everyone should at least have the knowledge about, because later on in your life it can significantly impact many assets in which you will attempt to gain. Your tips and suggestions are very appealing/easy to carry out, and I feel it will assist me in the near future.
ReplyDeleteThis is definitely a really big struggle for a lot of people our age, as most of us tend to be impulsive shoppers/spenders. As we all approach the stage of our lives where we start obtaining credit cards, I think it’s super important to remember some of these rules/guides. As simple as these rules/guides sound, they can have dramatic consequences for your credit score. Overall, I think that these are great tips for starting out using a credit card, as you progress further in life you may have to alter the guidelines being used slightly, as things like having a few more credit cards would be really helpful to your credit score. I enjoyed reading this blog a lot, great job!
ReplyDeleteThought this was a well thought out informative piece. I've never really thought about being in the situation when my credit card gets declined, and I don't really want to be in that situation. Exactly the reason why I thought this blog was good as it's good to take notice of any reasons why your credit card would get declined. It's important to know what the problem that is occurring and figure out a solution as fast as possible to ensure no damage to your credit score or going into debt. Overall, good job!
ReplyDeleteThis is so helpful especially to us senior who are applying for a loan and such services. Crazy to think there are so many factors to your credit and how one little mistake can put you in such a hole that may take years to get out of. The first picture really helps your writing and gives a good summary. With that being the case maybe, talk a bit more on those reasons to help the reader understand more within your writing. That way, not only they get a good summary right off the bat, but also an in depth explanation.
ReplyDeleteGreat job! Impulse buying is a big worldwide problem now today, when people see something they like, the only thing that they think about it how they really want to buy it in the moment therefore not thinking about their money situation. So if you do indeed use cash, you have less of a credit card bill to pay and less to keep track so overall I think that is a fantastic idea for the sake of avoiding credit card problems. Also I thought debt elimination can really help you from not going into debt. You should not be just buying things that you want outrageously on your credit card, it should be used for things you actually really need and mostly for emergencies!
ReplyDeleteThis blog was very informational. It's good to show new buyers how it benefits you to build credit score. It's insane to think a few bad financial decisions can put you in such a slump. Impulse buying is a problem nowadays, and the steps you gave are very helpful.
ReplyDeleteThis was such a helpful blog! Anyone who hopes to one day apply for a loan would be better off reading your blog beforehand. You gave great information and it’s stuff people in all age brackets can really use, but is super important to learn early. Nobody wants to get their credit card declined at the register, and with your tips, they won't have to. I specifically loved your warning about impulse buying because it is such a huge problem in our generation especially. Overall great job!
ReplyDeleteThis was both informative and super fun to read! You made it catching with the first paragraph which I appreciated! It really shows how credit score can seep into so many facets of life. I'll definitely be remembering these as I head off to college and most likely get my first credit card!
ReplyDeleteThis was very helpful. Especially since some people see a credit card as free money not realizing that they will have to pay that money back at the end of the month. Many times people are very careless with their credit card and and max it out very time.
ReplyDeleteThis blog gave me even more knowledge about credit cards/scores and connected greatly with our previous unit. You included great graphics of how credit cards can really destroy your life if you’re not paying attention to your finances and go overboard. It’s good that you included the fine print and see what kind of penalties you could get from not paying your payments on time. This is a great blog to read for those who are thinking about getting their own credit card and how they could eliminate some of these consequences. Great job, Jada!
ReplyDeleteGreat blog very informational. A lot of people find themselves not really caring how much they spend or even if it is being declined they will just keep going and not solve the issue. Thank you for sharing.!!
ReplyDeleteI really liked the scenario you brought up in the beginning. I know that credit card debt is a never ending process of losing more and more money as time goes on and you did a great job showing ways in which we can help credit card debt as well as avoiding it entirely. I do not have a credit card right now but I will get one as soon as I can so I will make sure that I take into account the 6 habits to get into to avoid credit card debt entirely. You stated that Americans hold 4.2 trillion dollars in credit card debt… do you think it’s a good idea for people to use debit cards instead of credit cards if they’re struggling so much?
ReplyDeleteJada, I appreciate the hypothetical situation at the beginning. It really helped understand these everyday problems people with credit cards go through. Along with the list at the end all the points you made were very valid. I think compulsive people should stay away from credit cards altogether. Good job.
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ReplyDeleteThe set-up for your blog was super well done! The hypothetical at the beginning caught my attention and got me engaged. I loved the summary points at the end that gave me tips, reminded me what I learned, and provided me with key take-aways. Well done, Jada!
It's scary that even if you've maxed out your balance (because you probably don't have the money to pay it back), that you can just keeping racking up fees and other charges. I think it is actually better to put smaller purchases on your credit card, so that you are able to pay them back in a timely manner and build up your credit score, but obviously if you don't or won't have the money to pay it back, then simply don't charge your card.
ReplyDeleteThis post was very informational. I really enjoyed how the introduction captures the reader's attention and it made it more enjoyable to read. I also really like the format and numbered list of tips to avoid your card from declining. I do not own a credit card at the moment but I will in the future so this was very helpful.
ReplyDeleteI liked your post because I thought it was relatable since most of us are turning 18 and will start to look into getting a credit card around the same time. I liked that you added a hypothetical situation at the start of your blog to grab our attention as well as the tip about waiting and buying things in cash rather than putting it on your credit card. The ending with a recap of all the tips you talked about was also a really good way to end the piece.
ReplyDeleteThe situation in the beginning was really effective at hooking me in as a reader. There are a lot of fees with credit cards, and I think it is important that we build credit score early rather than later. I don't have a credit card currently, but I have looked into it somewhat. When I get one I will make sure I preform the 6 overall habits.
ReplyDeleteI feel like a lot of these tips are useful even outside of credit card debt: budgeting your money, don't impulsively buy, pay your bills on time. That being said, these are still very good tips to keep in mind. I like that you summarized your blog post in a bullet point list at the end, this way the audience can hopefully retain the information better, and it wraps up your message really well. I wonder, why do so many people choose to have a credit card if it costs so more than an ATM?
ReplyDeleteCredit cards are something that I've always been concerned about, because when I was a kid my dad would tell me about how credit cards can be really bad, but as I got older and found out more about credit cards, having a credit card can get bad only if you're not managing it correctly. This post further clarified that for me, which made it very beneficial to read. You wrote about how you should think about if you need the thing you're going to purchase with a credit card, and I was wondering how would determine a want purchase, and a need purchase when using a credit card?
ReplyDeleteI really liked the 6 habits you put at the end, if found those to be helpful not only with credit cards but with other finances as well.
ReplyDeleteCredit and credit scores have almost been something on my radar for the future to help purchases but I've always been concerned about the debt I could fall into, so this piece helped me build confidence for future. I loved how you summed your piece up with the 6 habits you put at the end.
ReplyDeleteMy credit score and my credit cards are extremely important to me! I keep track of all of my credit cards and pay them off in full every month to keep a healthy credit score I really suggest anyone and everyone to start maintaining healthy credit as it will pay off tremendously later in life.
ReplyDeleteThis was very helpful. Especially since some people see a credit card as free money not realizing that they will have to pay that money back at the end of the month. Many times people are very careless with their credit card and and max it out very time.
ReplyDeleteYeah I never thought the reason for instate tuition was because of taxes. i thought it was just and incentive to stay instate for collage. I wounder how much of the tuition cost could be reduced to try and reduce student debt. posture trainer
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