Risky Credit Card Choices That Seem Smart at First
Hoarding cash back
Saving your cash back for a rainy day may seem like a wise choice, but inflation can erode its value over time. Consider depositing it into a high-yield savings account or 'earn and burn' by applying it as a statement credit immediately.
Manufactured spending
Credit card users sometimes engage in manufactured spending to earn rewards, but this practice can be risky and may lead to unexpected fees or policy changes by credit card issuers.
Using your card's installment plan
Credit card installment plans can help you avoid interest but may come with monthly fees that could impact your credit score. Evaluate the total cost against other options before opting for this method.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.