13 Credit Card Mistakes to AVOID
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- Опубликовано: 16 июл 2024
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Credit card mistakes to avoid and best practices.
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Timeline
0:00 Start Here
0:26 Ignoring Credit
2:52 Understanding Dates
4:37 Not Paying Cards
5:10 Interest
6:09 Overspending
6:56 Credit Benefits
7:49 Using Cash
8:36 Using the Wrong Cards
10:17 Flex Cards
10:49 Understanding the Meta
11:12 Rushing
11:59 Closing vs Downgrading
12:22 Not Reapplying
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🍾 the biggest mistake I see is people just being too afraid of it. I think society has conditioned us (at least in the US) to be fearful of credit cards and not to explore how it can be a win win scenario. The amount of people who gasp or are surprised when I say have 12 credit cards is wild. And here I am planning the next 3 or 4 😂
Agree! I have some friends who are still debating getting the CSR after 4 years and still haven't applied. 😅
I used to be one of those people. I didn’t apply for my first credit card until February 2021. Now I have several premium credit cards and i love them 🤪
🍾 Rushing the credit card game is definitely a big mistake. It's easy to only ever think of the next card in front of you, but if you don't take into consideration your lifetime in the credit card game, you could really get yourself in trouble with application rules like the 5/24 rule or Amex pop-up jail. Great stuff Sebby!
I'd like a video on how to use Chase Insurances because I have a claim out and they keep asking for unnecessary documents over and over...not that customer-friendly.
It’s a nightmare!! I booked a hotel through the Chase portal and due to an illness had to cancel in less than a 48hr window (which was the hotel’s policy) so incurred a cancellation charge but filed a claim with Chase. The issue here is Chase books through Expedia who books with the hotel etc. so getting this resolved involved one group telling me I needed to get info from another. It was my first experience booking through the portal and while things won’t alway come up like this, when they do it’s not an easy process.
I second that video. Still in the middle of a claim from June for hotel, Ubers, and food from a missed flight connection. I would love to see Sebby’s tips!
Me too!I keep calling them and they say it's fine but then keep requesting docs
YMMV. I disputed a charge and the process was relatively seamless. I did have a bunch of docs and when request I already had them scanned and ready for review.
@TeeNastie see, I did that too knowing they would ask for the world. I've had two different people request for more even after being told they had all they needed...
🍾 Deciding on my next card and your channel always helps me get my thoughts straight!
Sebby knocked it out of the park again with this video, such a great clear communicator, excellent information.
🍾 Deciding on what card to get next and your channel always helps me decide! Keep it up!
Love your videos. Keep ‘em coming 🍾
Thanks, Sebby!
🍾Great video! Thank you for all the info and tips!
🍾 Definitely helpful! I’ve had credit cards for over 10 years & I still feel like I’m learning so much about them!
🍾 I am so glad that I found your channel!!! I have had some amazing adventures thanks to you!!! The chase trifecta, world of Hyatt and Bilt cards are bringing me joy. 🎉
🍾great tips!
🍾 All good points, considering downgrading my CSP & going for it again for the bonus
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Great points. Especially the 1st one!
🍾 good video. I can’t help but notice your perpetual love for the Citi Double Cash! 😉
Solid catch-all option. 2% cash back (floor) with 2X TY being a ceiling :) There's a case for the CFU (but only 1.5X UR) or BBP (capped).
Solid video!🍾
Thanks for watching!
🍾🍾🍾🍾 I am learning so much from your videos. Thank you for the content.
🍾 biggest mistake was canceling my oldest credit card that I got in college. Pretty sure it was a Chase BP card.... otherwise I'm pretty spot on using the card that gives me the most cash back/ travel points and paying in full every month. My credit utilization is usually in the 2-4% range.
Huh, I was considering what sort of storage I should get as an upgrade from a rubber band. That booklet looks nice.
🍾 My biggest mistake was carrying balances. I've made more in rewards than I paid in interest, but it was very stupid. Especially because it wouldn't have been much of a struggle for me to pay them off at the time. I can understand how people can get stuck in that cycle permanently. You think you only need to drop down to the minimum payment one time, and you'll pay it off soon. You see a small interest charge on your statement, think it's not so bad, leave it on minimum autopay, and before you know it, the interest adds up over months, then years. Looking back, it seems so crazy and illogical that I would do something like that.
Sebby needs to be WAY more aggressive that folks need to FULLY PAY OFF credit cards. It’s not “ideally” you fully pay off cards. It is a REQUIREMENT if you are going to play this game. If folks can’t follow this, then they are not “credit card people” as Caleb would say. Sorry they won’t watch sebby anymore but I don’t think you want to play a role in people ruining their lives with snowballing debt.
@@03086rm I would guess that the vast majority of Sebby's audience has either never made that mistake, or learned the hard way like I did, and won't make that mistake again. I don't think it's his responsibility to try and also cater to the "Dave Ramsey audience" - the people who are still stuck in the cycle and unable/unwilling to get out themselves. I don't recall Sebby ever suggesting anything irresponsible like carrying interest-gathering credit card debt. Personally, I think that's enough.
I think the first responsibility should lie in the education system. Basic personal finance should be taught in high school. Everyone should learn how to responsibly use credit cards before they even get one. Maybe it's different now, but I never learned any of this stuff as a kid.
The biggest mistakes once you are deep in the game come from managing all your cards. You may forget to put a charge on a card and it gets canceled on you. The other big one is getting emotionally attached to a card even if it doesn't make sense to pay the annual fee for it, because it doesn't fit your lifestyle anymore. You gotta be cold blooded an treat each card as a tool. 😅
Seb can you do a video covering which cards have purchase protection for loss. It's pretty rare I think. Amex platinum personal
On the list!
Thanks for the help this has helped me a lot I started from nothing now have 8 credit cards no debt credit is 770
1. How long should I wait to reapply CSR after downgrading to a no-fee Chase credit card?
2. Will there be any possibility that Chase might not approve my CSR application after downgrading? If yes, what should I do?
Thank you Sebby!
Wait until the next statement to apply. Should be fine if you’re under 5/24 and good credit score.
🍾Rushing to get a card is a big one. I’m glad I waited for the freedom flex I just got the new welcome bonus 5% cashback on gas and groceries for the first year !
Nice!
I have a few credit cards, but always only use the best cash back everyday card. Should I use some of my lessor rewards cards?
🍾. What gets me the most is when people don’t have a strategy. Say thinking two-three cards down the road. Think and plan ahead. 💡
🍾covered a lot here, excellent for beginners; will be sending this to friends
Thanks! :)
Agreed- going to have my daughter who just got her first card watch this
What is the best (non-Chase) card to be able to upgrade 2 economy tickets to Europe or UK every 3 years or so? I’ve always just been team cash back & I’m not interested in Maldives etc. mainly Europe. Cap 1 won’t give me Venture with sign up bonus, only upgrade it btw. Chase and only Chase was burned in a divorce unfortunately. FICO score over 800.
Does downgrading a card not reset the 24 or 48 intro bonus clock? So for example if I have a CSP and downgrade to Freedom unlimited after the first year, can I use the Freedom for a year and then at the end of that year upgrade back to CSP and reapply for the intro bonus?
🍾 used to use debit; but now I am #TeamTravel all the way :P In my view, the most important ones are understanding dates, not paying cards, and interests. Points don't mean anything when not paying cards will cancel all the points rewards I get anyway. Related: overspending.
Totally agree!
How about Chase Reserve sapphire?? Do you think is a good card? They increased the annual fee😩 I am debating whether to close it end of year? 🤔 I have chase unlimited too. I have high credit score
I know you mentioned this before, but I have the CSP and am looking at getting the CSR. I already have flex, freedom, and freedom unlimited. Can I still downgrade to another freedom card then upgrade the same card at a later time and get the CSR bonus? If so, how long do I have to wait? Im good with the 5/24 rule.
Getting a card just to flex instead of getting a card that works for your lifestyle is the biggest mistake I’ve seen people make. They manage to qualify for a high-end card, but the card really isn’t the best fit. The credits aren’t practical for them, but they feel like a big shot when they whip out the card to pay for stuff. For the love of God, the AMEX platinum is not for everyone. You’re not a lesser person if you don’t have lounge access.
It doesn’t make you cool to spend money that you don’t have, buying stuff you don’t need, to impress people who don’t care.
Starting off with cards from predatory issuers with fees and low limits.
Hey Seb! I was wondering if you still have 3 of your Hilton Aspires? And how do you maximize that? Do you go to Maldives every free night certificate year? Haha
Haven’t been to the Maldives since 2019. Might switch up some destinations. Stay tuned 😉
🍾 Great video. I have been using the Apple Pay with the card from Goldman Sachs and adding the 2-3% cash back into the Goldman Sachs savings account which earns about 4.15% APR. Not a bad way to save money plus I don’t do a lot of traveling unfortunately.
🍾 13:16 I have 3 of those boshiho booklets: one for each member of my family. They’re great!
🍾 thank you for the advice, man. I have a 675 credit score just starting out at age 38 . I got the capital one platinum in May. Hopefully, I'll be able to get the capital one savor by January. Then venture x eventually. I'm waiting for a kidney transplant, so maybe some discounted travel in my future 😂😂
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Please do a chase hotel keeper card 2023 update.
I NEED YOUR ADVICE-
I purchased a 2013 Acura MDXw/98k miles. I put down $10k yet still owe $12k. How do I get out of this bad financial decision?? This is the first car I’ve ever financed- I also own a “ summer” car, paid for. I live in Denver hence, the SUV necessity.
🍾Hey Sebby, can you have the Marriott Boundless & Ritz Carlton at the same time? Thx!
Yes you can
The mistake I make is using one card too much at the expense of all my other cards. I don’t use my Gold enough and as such when I tried applying for another Amex card I ended up in pop up jail. Considering the points I could get from supermarkets I should at least be using it for that. Ima correct that going forward. 🍾
🍾 You're really an inspiration. I really took value in your videos the past 3 years. Your videos guided me in establishing my credit. As of today I have 70,000 in available credit. 🍾
Awesome! Glad the videos have been helpful :)
Largest mistake I made was redeeming my 100k chase points for cash in an attempt to not pay interest but I let go of more or less $3000-$5000 worth of hyatt stays 🍾🍾
Not using autopay
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🍾 You’ve mentioned Amex could raise the annual fee of the Platinum card. What are your thoughts on making a video on what they would need to do to justify a, let’s say, $100 increase?
I thought a couple of those justifications could be even higher statuses with Marriott and Hilton, and maybe even getting an elevated status with an airline.
You didn’t link the video with the best credit card issuer strategy so that you don’t leave money on the table
🍾largest mistake I made is applying to the amex plat (or largely) amex family of cards too early.
Why the hate?
I love the Blue Cash Preferred for 6% cash back on groceries- it’s the only Amex card that matches my needs right now. It has $95 AF but can downgrade to zero.
@@MKK-wg7fzThis is the only Amex I have too & is my groceries and gas card. They keep throwing the Platinum in my face but I'm not biting. I'm curious about what you lose if you downgrade to the zero AF card.
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🍾 I have had a few, maybe three or four, cards that were closed on me by the bank due to inactivity. One was closed because the company sponsoring the card went bankrupt. 😲
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Spend less than you earn. Simple right?
Please tell me you don’t have 90 cards 😳 🍾
How many cards can you have & still get approved for Venture with bonus?
I got the Venture X and the bonus when I already had 8 personal cards, if that data point helps.
@@DougYuen Doug , yes that’s helpful. Did you already have a Cap 1 card and from what year? I got the Savorone 2 yrs 6 months ago and I have 9 total cards, 6 figure$ and 800+ score. They don’t approve me for Venture X, just Venture and with zero sign up bonus miles. It’s frustrating. I have a HYSA with them I wonder if they don’t see me as profitable.
The biggest mistake is using a credit card exactly how the financial institution wanted it to be used.
Which is…Max it out and slowly make monthly payments 🤦♂️
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🍾 not using all the credits or benefits of the card
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Potential???😅😅😅 Good Riddance. Next, yall will want Boss Man back
We need offense. Go beg for Schultz back.
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First like 🎉
yay! :)
a lesser known but costly mistake: one of the first things to do once a new card is activated is to immediately set the cash advance limit to $0 or as low as possible. If you have a high cash advance limit, then you expose yourself to the risk that certain purchase/online payment transactions will code as cash advance.
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@AskSebby - FYI link to the credit builder pro within the free credit builder notion template is broken (404s)
Good catch! Just updated it.
🍾great tips!
Love your videos. Keep ‘em coming 🍾
Thank you! Will do!
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cheeky comment aside, I genuinely do enjoy your channel and have learned a lot on my credit journey through your tips and advice. Thank you! @asksebby
@@AskSebby !!