Comments on: How to Avoid the Credit Trap http://www.mint.com/blog/goals/how-to-avoid-the-credit-trap/ The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Sun, 12 Feb 2012 05:07:51 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: cee grenier http://www.mint.com/blog/goals/how-to-avoid-the-credit-trap/comment-page-1/#comment-34921 cee grenier Fri, 14 Aug 2009 17:32:43 +0000 http://www.mint.com/blog/?p=1363#comment-34921 I am alarmed to hear that closing credit card accounts after you pay them off can hurt your credit score. I have closed a half-dozen accounts over the past 20 years; should I have left them open? I am alarmed to hear that closing credit card accounts after you pay them off can hurt your credit score. I have closed a half-dozen accounts over the past 20 years; should I have left them open? ]]> By: VP http://www.mint.com/blog/goals/how-to-avoid-the-credit-trap/comment-page-1/#comment-31039 VP Wed, 06 May 2009 19:23:58 +0000 http://www.mint.com/blog/?p=1363#comment-31039 Some of this advice is also useful for small businesses. But your cautions are well-taken. Our company runs background checks; and you'd be surprised how a bad credit report can affect a job offer... negatively, of course. VP www.verifyprotectblog.com Some of this advice is also useful for small businesses. But your cautions are well-taken. Our company runs background checks; and you’d be surprised how a bad credit report can affect a job offer… negatively, of course.

VP
http://www.verifyprotectblog.com

]]> By: Luke "kip" Owen http://www.mint.com/blog/goals/how-to-avoid-the-credit-trap/comment-page-1/#comment-30995 Luke "kip" Owen Mon, 04 May 2009 19:27:03 +0000 http://www.mint.com/blog/?p=1363#comment-30995 Careful with your point in number one about transferring debt from card to card. You should leave the one card open, transfer most of the balance to another card that gives you the no interest for a year (leave maybe $5 on the old card). Pay off this remaining $5 down the road leaving a balance of zero But keep it open. Pretty sure this helps out your credit score. As for transferring your debt around like this, I would check to see how this effects your score but I'm almost positive it doesn't help it. It may hurt it but it also may not be that drastic therefor the money you save from having no interest for a year offsets the small decline in your score. Careful with your point in number one about transferring debt from card to card. You should leave the one card open, transfer most of the balance to another card that gives you the no interest for a year (leave maybe $5 on the old card). Pay off this remaining $5 down the road leaving a balance of zero But keep it open. Pretty sure this helps out your credit score.

As for transferring your debt around like this, I would check to see how this effects your score but I’m almost positive it doesn’t help it. It may hurt it but it also may not be that drastic therefor the money you save from having no interest for a year offsets the small decline in your score.

]]> By: Ian http://www.mint.com/blog/goals/how-to-avoid-the-credit-trap/comment-page-1/#comment-30802 Ian Wed, 29 Apr 2009 16:28:27 +0000 http://www.mint.com/blog/?p=1363#comment-30802 Sorry but no one ever got rich from credit card rewards points and is an extremely biased article in favor of credit cards (part of why the US is where it is at). They pay you back usually 1 cent on the dollar as you spend more to get "rewards". Try using cash, cutting your cards up except for a debit/ATM card. The risk is far less as there's also liability protection and there's no interest or finance charges and now most places refund ATM fees - so long as you don't overdraw. A card is a big temptation for most and would be better off not using it (since the average person spends 12-20% more with one than without) so it doesn't "save" you anything. Sorry but no one ever got rich from credit card rewards points and is an extremely biased article in favor of credit cards (part of why the US is where it is at). They pay you back usually 1 cent on the dollar as you spend more to get “rewards”.

Try using cash, cutting your cards up except for a debit/ATM card. The risk is far less as there’s also liability protection and there’s no interest or finance charges and now most places refund ATM fees – so long as you don’t overdraw. A card is a big temptation for most and would be better off not using it (since the average person spends 12-20% more with one than without) so it doesn’t “save” you anything.

]]> By: Alex Herder http://www.mint.com/blog/goals/how-to-avoid-the-credit-trap/comment-page-1/#comment-30799 Alex Herder Wed, 29 Apr 2009 14:54:51 +0000 http://www.mint.com/blog/?p=1363#comment-30799 Thank you so much for pointing out the BENEFITS of credit card use. I'm a big financial geek and read a lot of personal finance blog but I'm annoyed that the only thing most experts seem to say about credit cards is "use sparingly, and only under duress." I've never carried a balance and as a result I have great credit and get 3% cash back on most things. That wouldn't be possible without the wonder of credit cards. Thank you so much for pointing out the BENEFITS of credit card use. I’m a big financial geek and read a lot of personal finance blog but I’m annoyed that the only thing most experts seem to say about credit cards is “use sparingly, and only under duress.” I’ve never carried a balance and as a result I have great credit and get 3% cash back on most things. That wouldn’t be possible without the wonder of credit cards. ]]> By: Mkcoy http://www.mint.com/blog/goals/how-to-avoid-the-credit-trap/comment-page-1/#comment-30780 Mkcoy Wed, 29 Apr 2009 04:19:58 +0000 http://www.mint.com/blog/?p=1363#comment-30780 I have to say. People should definitely use this as a primer to save money. Cashback credit cards would appear to be an option eeryone should regard when looking to save money in todays climate. Thanks for pointing out about paying off the cards bill in full each month. On doing so we can actually turn the table on cashback card companies and have them make us money for a change and not vice-a-versa. I have to say. People should definitely use this as a primer to save money. Cashback credit cards would appear to be an option eeryone should regard when looking to save money in todays climate. Thanks for pointing out about paying off the cards bill in full each month. On doing so we can actually turn the table on cashback card companies and have them make us money for a change and not vice-a-versa. ]]> By: Mindy Kang http://www.mint.com/blog/goals/how-to-avoid-the-credit-trap/comment-page-1/#comment-30777 Mindy Kang Wed, 29 Apr 2009 03:51:59 +0000 http://www.mint.com/blog/?p=1363#comment-30777 Such an informative article and put in the simplest, easiest way. Thank you! Such an informative article and put in the simplest, easiest way. Thank you! ]]>