Here are the Best Credit Card Tips We’ve Found on Instagram | Tech Reddy

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Instagram was perfect for these credit card tips.

Key issues

• Pay only what you can afford in full so you don’t end up paying interest on your purchases.
• Get more than just a bargain. When interest rates add up quickly, getting out of debt can be difficult.
• Credit cards can offer three main benefits: travel protection, rewards, and sign-up rewards. But it must be used properly.

With so many followers on Instagram, it can be hard to know who to trust when it comes to financial advice. And while there’s a lot of bad financial advice floating around the internet, we’ve found some great things on Instagram to help you save money, improve your credit score, and make decisions. financial decisions.

Pay off your credit card balance every month

This 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 off your balance each month.

This is some of the best credit card advice out there, and it’s something that most people ignore. Just because you have a high credit limit doesn’t mean you have to increase it every month. If you can’t pay off your balance in full, you should reevaluate your spending habits. Otherwise, you’ll be buried in debt before you know it.

Get more than just a bargain

If you get into a bind and can’t make a monthly payment, try to pay more than the minimum. @modernmoneyinc in a post breaks down how credit cards work and “how the high interest rate increases that apply to most cards if you have a steady balance.” Mark is an example of his trip to Europe and spending $5,000 on his credit card. If Mark can only pay $1,000 on the due date and $500 a month, then he will pay $330 in interest assuming a rate of 19.99%.

However, if Mark pays $100 a month, it will take him 67 months (more than 5 1/2 years) to pay off the loan in full, and he will pay $2,647 in interest. That would be an expensive trip to Europe. Credit card companies require you to pay the minimum. This is how they make money. @modernmoneyinc says “Credit card debt is the worst type of debt a young professional can carry!”

How to use credit cards wisely

If used correctly, credit cards can provide some great benefits. In the post, @thriftlondoner says credit cards offer three benefits: travel protection, rewards, and signature points. Many credit cards offer purchase protection and travel coverage. They offer fraud protection and liability coverage. This means that if someone fraudulently uses your credit card, you are not responsible for any purchases you did not make.

Many credit cards offer rewards such as cash back and points that can be used to pay for travel. Do your research to find the credit card that best fits your lifestyle. Some offer additional fees for meals and restaurants, groceries, air, and tours. If a credit card doesn’t offer rewards, offers, or cash back, you’re leaving money on the table.

Finally, some credit cards offer great rewards. “Many cards offer a welcome bonus upon entry. It can be in the form of cash, rewards or cash.” Many credit cards offer sign-up bonuses worth hundreds of dollars in cash back. Although the bonuses are good, you have to earn them by spending money on the card. It’s important not to go to the credit just for the signup bonus.

If you’re like most people, you have a love-hate relationship with credit cards. On the one hand, it’s very convenient and helps you collect rewards points that you can use for travel and other purchases. On the other hand, it is very easy to get into debt with credit cards if you are not careful. Paying off credit cards every month will help you take advantage of the benefits they offer.