Home gambling commission Here are the best credit card tips we found on Instagram

Here are the best credit card tips we found on Instagram

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Instagram got this credit card advice right.


Key points

  • Only charge what you can afford to pay in full so you don’t pay interest on your purchases.
  • Make more than the minimum payment. Interest will accumulate quickly and make it difficult to pay off your debts.
  • Credit cards can offer three key benefits: travel protection, rewards, and sign-up bonuses. But they must be used responsibly.

With so many influencers on Instagram, it can be hard to know who to trust when it comes to financial advice. And while there’s plenty of terrible financial advice online, we’ve found some real gems on Instagram that can help you save money, improve your credit score, and make smart financial decisions.

Pay your credit card balance each month

It may seem obvious, but Americans pay about $120 billion a year in credit card interest, or about $1,000 a year for every American household. Credit cards are one of the biggest sources of consumer debt, but it’s important to pay down your balance every month.

It’s one of the best credit card advice there, and that’s something far too many people overlook. Just because you have a high credit limit doesn’t mean you have to max it out every month. If you can’t afford to pay your balance in full, you need to re-evaluate your spending habits. Otherwise, you will find yourself in debt before you know it.

Make more than the minimum payment

If you hit a snag and can’t pay it back every month, try paying more than the minimum. @modernmoneyinc in an article explains how credit cards work and “how the high interest rate associated with most cards can add up if you have an outstanding balance”. The post gives an example of Mark splurging on a trip to Europe and spending $5,000 on his credit card. If Mark can only pay $1,000 on the due date and $500 per month, he will pay a total of $330 in interest assuming an interest rate of 19.99%.

However, if Mark only pays $100 a month, it would take him 67 months (over 5½ years) to fully pay off the debt and he would pay $2,647 in interest. It’s an expensive trip to Europe. Credit card companies want you to pay only the minimum. This is how they make money. @modernmoneyinc says “credit card debt is often the worst kind of debt a young professional can have!”

How to Use Credit Cards Positively

If used correctly, credit cards can offer significant benefits. In an article, @thriftlondoner claims that credit cards offer three benefits: travel protection, rewards and sign-up bonuses. Many credit cards offer purchase protections or travel coverage. They offer fraud protection as well as liability coverage. This means that if someone uses your credit card fraudulently, you are not responsible for any purchases you did not make.

Many credit cards offer rewards like cash back or points that can be redeemed for travel. Do your research to find the credit card that best suits your lifestyle. Some offer additional rewards for catering and restaurants, groceries, gas and travel. If you don’t have a credit card that offers rewards, offers, or cashback, you’re leaving money at the table.

Finally, some credit cards offer excellent sign up bonus. “Many cards will offer a welcome bonus when joining. This can be in the form of cash, points or vouchers.” Many rewards cards offer sign-up bonuses worth hundreds of dollars in cash. Although bonuses can be lucrative, you must earn them by spending money on the card. It’s important not to go into more debt just for the sign-up bonus.

If you’re like most people, you probably have a love-hate relationship with credit cards. On the one hand, they are incredibly practical and can help you earn loyalty points you can use for travel or other shopping. On the other hand, it’s all too easy to get into credit card debt if you’re not careful. Paying off your credit cards each month can help you take advantage of the benefits they offer.

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