I usually say just don’t ever use a credit card, but we’re all adults now, and credit scores are important – at least according to my mother.
Welcome back to the Financial Rundown. This week, we’re talking credit cards. Now that Halloween is over, the only thing left to look forward to this year is Christmas – *cue Mariah Carey.* I love the holiday season. It’s all shiny and warm, with pretty decorations, and lots of presents. I believe the best gifts in life are the people around me, which ironically also means that I want to give all my loved ones the best gifts I can. And unfortunately, this also means expensive gifts that I can barely afford and am so tempted to use my credit card on. But that is a big no-no in the laws of the financial responsibility. So I thought I’d write an article to not only share my wisdom but to remind myself of some of the big DO NOT EVER DO THIS’s of credit card using.
1. Spending More Than You Can Pay Off Each Month:
I don’t want to hear about how you can make the minimum payments. Don’t do it! Even if you can pay off the minimum, carrying that balance along to the next month is not only stressful, since you now have to account for that in your next month’s budget, but it can make your annual percentage rate (APR) skyrocket if you’re not careful. Also, credit utilization makes a huge impact on your credit score and even if you don’t know what a credit score is, I know you know that it’s an important thing. Bottom line, if you’re going to be using your credit card, make sure you can also make the purchase with your debit card too.
2. Bringing Your Credit Card With You on a Night Out:
NOPE. Intoxicated you is definitely not responsible you. It’s like driving – just because you’re not technically drunk or you’ll only have one or two drinks, it’s still dangerous to do! There’s no such thing as an emergency tequila shot, so leave that card at home. In fact, my rule is “always only bring cash on a night out.” Cards are hard to keep track off, and it’s way too easy to spend $100 in one night without realizing it until the next morning.
3. Plugging in Your Credit Card Number on Uber:
I’m not saying don’t have the app – I love Uber as much as the next perpetually cold, slightly lazy, gal. I’m just saying to not plug your credit card numbers in. Even if you’re always splitting rides, those $3-5 dollar rides are like coffee, they add up super quickly and they’re incredibly easy to forget about. Some friends of mine have said that they like to put their credit card numbers in just in case they don’t have enough in their debit account. But, to be frank, if your account is that depleted, maybe you shouldn’t be using Uber in the first place.
4. Retail Therapy:
No, you don’t deserve that new dress just because you had a bad day. I’m so guilty of this. Life happens, things go wrong, and some days you just feel plain awful and maybe treating yourself to that pair of shoes you’ve been eyeing forever or that really expensive thing you don’t really need will cheer you up and fix everything. News flash – it won’t. It’ll just be a waste of money you really can’t afford to waste. There’ll be an instant gratification but that’ll be it. And at the end of the day, it’s really not worth it. Treat yourself to a latte, and pride yourself on being financially responsible even through the bad days. It’ll suck – but that’s part of being an adult, and your bank account will thoroughly thank you.
So the next time you pull out the credit card, be sure to ask yourself if you’re breaking one of these golden rules. If you’re not, then happy shopping and congratulations are being a responsible adult.
Images obtained from Favim, Caesars, GovTech,