11 Common Credit Card Mistakes

10 Aug

Common Credit Card Mistakes, black wealth, african american wealth

Kiplinger’s Advises Consumers on Protecting their Credit Rating

New rules put in place by the Credit CARD Act of 2009 and the Dodd-Frank Act of 2010 help with avoiding credit card misinformation, as does the formation of the Consumer Financial Protection Bureau, which monitors the credit-card industry. But, says Kiplinger’s, “ultimately it’s up to you to use credit wisely.”

Considering that one of the major credit-reporting agencies, Equifax, is a member of recently debunked Standard & Poor’s 500 Index, high interest rates, lower credit limits, unwanted fees and dings to a credit score can happen all too easily. Consumers should look out for potential “creative financing” actions that may lower their credit scores. Kiplinger’s lists the following mistakes: Late payment of bills, bungled balance transfers, making minimum payments, using up all available credit, ignoring statements, foreign transaction fees, expensive cash advances, spending just to earn bonuses and reward offers, paying excessive annual fees, chasing “creative financing” teaser interest rates, and neglecting credit scores. Also, check your report often for signs of identity theft.

Kiplinger‘s also reports seven little-known credit card perks, such as enhancements to extended warranties, price-variance refunds, insurance on lost luggage and items stolen from hotel rooms during travel, points that pay for checked bag fees at airports, rewards that cover free admission to museums, concierge services, and even cards that help stranded international travelers get home when flights are cancelled.

The CFPB states “On President Obama’s first day in office, he issued a memorandum directing government agencies to favor disclosure in response to FOIA [Freedom of Information Act] requests ‘in order to renew their commitment to the principles embodied in FOIA, and to usher in a new era of open Government.’” The most important function of the Bureau is to supervise banks, credit unions, and other financial companies, and enforce Federal consumer financial protection laws.

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5 Responses to “11 Common Credit Card Mistakes”

  1. R August 10, 2011 at 10:55 pm #

    CUT UP THOSE CREDIT CARDS AND GET OUT OF DEBT!!!They are like a SLAVE chains around your neck. PAY CASH and if you can’t pay cash save up for it. You can’t afford it if not paying cash. Now I don’t mean for a house/home, but at least pay 10% down and pay extra payments on the principal to cut the interest down to pay off sooner. If your going to purchase a auto DON’T LEAST IT IT’S A SCAM!! Save up half the monies for a new car or buy a bucket. I’m just saying 🙂 Been there done that. Learn a good lesson.

    • Anonymous August 11, 2011 at 6:03 pm #

      Cut up the credit cards, but don’t close them. Let the company do that after your card has been inactivite. It affects your credit in a negative way if you close the card yourself (who knew?)

  2. Prequalified Credit Cards November 27, 2011 at 8:24 pm #

    A great post. Bookmark your page and will keep with me. Can I share your content on my blog with all your links intact. Wont change anything.

Trackbacks/Pingbacks

  1. 11 Common Credit Card Mistakes « Black News in the black community - August 10, 2011

    […] CLICK TO READ […]

  2. 11 Common Credit Card Mistakes « Black Women Today - August 10, 2011

    […] CLICK TO READ […]

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