Comments on: 5 Credit Card Tips I Wish I Learnt Sooner

By: Alex F

Alex F — Tue, 15 Sep 2009 08:42:26 +0000

Thanks for sharing such good post, according to me last tip of cc and debit card is the perfect one.

By: Mike

Mike — Thu, 10 Sep 2009 21:38:33 +0000

Actually, considering your credit score is based in part on your % of credit utilization, a wiser move would be to double your credit limit and curtail your spending as if you had cut in half.

By: athensguy

athensguy — Tue, 08 Sep 2009 13:48:25 +0000

I am from the US, so that’s where my perspective is.

I pay my credit cards in full every month so number 1 is not true for me.

Number 2 is bad advice for the US at least because of the credit scoring system used by many banks. Even if you pay in full each month, if you allow a balance to show on your statement that is what your utilization is calculated from, and if your credit limits are lower, your score may be lower. If you are trying to maximize your score, you want to show less than 10% of your credit limit being utilized.

Number 3 is true if you don’t have the money to actually pay the balances, but it can be worthwhile if you are playing credit card arbitrage (though with today’s interest rates, that game is hurting unless you do the high rate gimmick checking game). Number 4 also relates to this same point.

Number 5 is not true the in the US. Debit cards are inferior to credit cards because credit cards provide more protection by law. Other advantages of credit cards include not risking your own money if fraud occurs and float time.

By: Zeb

Zeb — Mon, 07 Sep 2009 01:14:09 +0000

This is a great post but the part about the debit cards needs to be fixed. Debit cards *are* different than credit cards. Aside from only using money that is in your account, many merchants will place a hold on your debit card until the transaction goes through. This can be anywhere from the price of the product to sometimes twice the price of the product or service.

I work at a hotel. When a debit card comes through, the system we use automatically calls the bank for an approval of the entire amount of the room and tax plus $50 per day of the guests stay for incidental charges. This protects the sale on our end and ensures that the money is secure.

However we only send out an approval for around $1 for credit cards — to ensure the account is valid.

The hold is cleared and we take only what the customer owes us at checkout, but banks sometimes won’t clear the hold for 24-72 hours.

It is a good idea to first find out if a company will place a hold on your account until the transaction goes through before you decide to use a debit card. It can be better to use a credit card and just pay it off afterward in those instances.

By: Alex

Alex — Sun, 06 Sep 2009 02:28:08 +0000

That is indeed a great tip, if it is possible; paying off your credit card each month in full is the number 1 option that will benefit you but not as easy for some.

By: C N

C N — Sat, 05 Sep 2009 11:26:22 +0000

Number 1 tip that seems to be missing is: pay off your balance, in full, every month. Never, ever, ever, carry a balance for longer than the interest free period.

Also, you mention switching to a debit card. Well, not all places (at least here in the UK) accept certain types of debit card, whilst credit cards are mostly universal. Again, if you pay off your balance each month, it’s not a problem.

I use credit cards mainly as a convenience, never as a way of spending money I don’t have. For me that seems to be the only acceptable way of using them, but evidently many people seem to disagree.

By: Martin

Martin — Fri, 04 Sep 2009 19:17:19 +0000

I would think the first thing to learn would be not to carry a balance on your credit card in the first place. And if you succeeded in that you could then actually use credit cards with point systems to earn while using them.

Personally, I never spend more then I will have in my bank account so I’m sure I can pay off my credit card at the end of the month.