Here are the Bad Credit Card Tips We Saw on Instagram | Tech Reddy

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Think twice before following credit card advice on Instagram.

Key issues

• Balance transfers are tempting, but the costs outweigh the benefits.
• Do your research before dealing with credit repair services.
• Don’t blindly apply for credit cards.

We all know that we should be careful when taking financial advice. But in the age of social media, it’s easy to forget that not everyone on the internet is an expert. In fact, some of the people who give advice on Instagram are really bad. Here are some of the worst credit card tips we’ve seen on Instagram.

Transfer balance and repeat

There’s nothing wrong with taking advantage of a 0% rate, especially if your current interest rate is high. One Instagram user suggests that you continue to transfer your credit card number to the 0% APR balance transfer promotion and repeat the process.

The problem comes when you think you can do it indefinitely. If not done correctly, the costs can outweigh the benefits. If you struggle to pay your debt on time, you have bad credit, and you can’t pay off your debt quickly, then all you have to do is kick the can down the road. If your credit score isn’t close to high, the 0% APR is only for a few months, and there’s a chance that the card’s interest rate will be higher than you paid in advance.

What credit card companies offer this? They expect you to send them your credit, they charge a fee (usually a percentage of the balance transfer), and they expect you to spend more money on the new card. If credit cards tempt you to spend more, balance transfers are not a good idea.

We promise to improve your credit score

While scrolling through Instagram posts on credit cards, I couldn’t help but notice a number of credit repair and credit service companies that promised to boost your credit score and negotiating with creditors to reduce your debt. The credit repair industry, in fact, is full of scams. They target customers with high credit card debt and require a cash advance, from $100 to $300.

What they do, you can do yourself. If there are false negative items on your credit report, you can contact the credit bureaus directly to have them review it. If you have more credit issues, go to a credit counseling agency. Unlike credit repair services, they are free to use. These organizations review your credit, debt and credit reports and work with you to help you manage your credit and finances. Avoid a company that promises to do things too good to be true, and do your research before working with a credit repair organization.

Use these credit cards

Another type of Instagram ad is users claiming credit cards for others. All of these tips should be taken with a grain of salt. Some offer good advice, while others actually direct you to your credit card’s affiliate link. This is how they make money. You click on the link and get the card, then you get a commission on the purchase.

Some credit card companies charge higher commissions, thus paying users to push and recommend certain cards over others. Before you start clicking on links and opening credit cards, be sure to compare credit cards to find the right one for you. Also remember that every time you open a credit card your credit score will suffer.

When it comes to financial advice, it’s important to be selective about who you listen to – especially on social media. Remember, just because someone has a big following doesn’t mean they know what they’re talking about when it comes to money. So before you take credit card advice from Instagram followers, be sure to do your research to see if it’s valid. And if it sounds too good to be true? Maybe it is.