Do people who apply for this card regret it? But the truth is shocking!
Everyone who applied for this card regretted it? But the truth is shocking! 💳😱
Credit cards, are they really angels or devils? 👀 Have you ever heard of this story – someone applied for a credit card, but the debt snowballed, the credit score plummeted, and finally regretted it? But some people got free air tickets, five-star hotel accommodations, and even earned thousands of dollars in cash back with credit cards!
Why are the results so different for the same credit card? Today, we will reveal the truth and see what pitfalls those who “regret” applying for the card have stepped on! 🔥
💀 Why do some people regret applying for a credit card? 5 common traps!
1️⃣ Only look at the sign-up bonus, not the “hidden rules” 😵
Many people see credit card ads saying:
“Sign-up bonus $750+” 💰
Does it sound like a great value? But they overlooked the fine print —
✅ You need to spend $4000+ in 3 months to get the reward
✅ Not all spending is counted, such as rent and utility bills may not be included
✅ High annual fee (some cards are free in the first year, and start charging in the second year)
❌ Real case:
Jack saw that Chase Sapphire Preferred® offered 60,000 points (worth $750 in travel funds) when he opened the card, so he applied immediately. But he found that he didn’t spend much on a regular basis, and forced himself to shop to meet the target, but ended up spending more than planned, and ended up losing money.
👉 The right way: Calculate whether you can meet the target before applying to avoid unnecessary spending to get the reward!
2️⃣ Only pay the minimum payment, and the interest snowballs ❄️
Did you know? The average annual interest rate (APR) of US credit cards is as high as 20% or more! 📉
💳 If you owe $5,000 and only pay the minimum payment each month (e.g. $100), it may take 10 years to pay it off, and the total interest paid may exceed $7,000! 😱
❌ Real case:
Lisa booked a $5,000 luxury trip with Amex Platinum, but she only paid the minimum payment. A year later, she found that not only did she not pay it off, but she also owed more money due to the increase in interest, and ended up paying thousands of dollars more than the original price!
👉 The right way: Pay the full amount every month, and never default! 🚨
3️⃣ Being “ripped off” by high annual fees 🌿💸
Some credit cards offer super luxurious benefits, but the annual fees are surprisingly high, such as:
Credit Cards
Annual Fee
Amex Platinum
$695
Chase Sapphire Reserve
$550
Capital One Venture X
$395
If you can make full use of these benefits (such as airport lounges, travel reimbursement), these cards may be very worthwhile. But if you just apply for the card and never use the additional benefits, it’s a waste of money! 💸
❌ Real case:
Tom applied for Amex Platinum, thinking that he would often use the lounge on business trips, but a year later he found that he only used it twice, and the $695 annual fee was totally not worth it, and he regretted it very much!
👉 The right approach: Calculate whether you can make back your money. If you don’t need these high-end benefits, switch to a credit card with no or low annual fees!
4️⃣ Mistakenly believe in “0% interest installment” and get hurt 🏦
You may see some credit cards offer “0% APR installment”, such as:
“0% interest for the first 12 months! Buy now, pay later, super cost-effective!” 😍
However, many people don’t see clearly that 0% is only temporary. Once it expires, the interest rate may be as high as 25%+!
❌ Real case:
Sarah bought a new $3000 MacBook during the 0% interest period, but she didn’t pay it off within the period, and the interest soared instantly. The total price she paid was $500 higher than the original price!
👉 The right approach: Only use a 0% APR credit card when you are sure you can pay it off on time!
5️⃣ Frequent credit card applications cause your credit score to plummet 📉
Every time you apply for a credit card, the bank will check your credit history (Hard Inquiry), causing your credit score to drop by 3-5 points.
If you apply for multiple credit cards in a short period of time, your credit score will drop sharply, and it will become more difficult to get a loan in the future (such as buying a house or a car)!
❌ Real case:
Mark applied for 5 credit cards in 6 months, and his credit score dropped from 750 to 680, causing his mortgage interest rate to be 0.5% higher than expected, and he ended up paying more than $10,000 in interest!
👉 Correct approach: Control the frequency of applications, apply for 1-2 cards every 6-12 months, and keep your credit score healthy.
😲 Credit cards can actually make you a lot of money! How to use them correctly?
💡 Credit cards are not a trap, but a tool that can help you save money and make money – provided you know how to use it!
✅ Choose the right credit card 👉 Choose a card with high cashback and high rewards according to your spending habits
✅ Make reasonable use of the card opening bonus 👉 Use daily spending to meet the target, without spending extra money
✅ Pay in full every month 👉 Never default to avoid high interest
✅ Avoid unnecessary annual fees 👉 Calculate whether you can earn back the annual fee, otherwise switch to a card with a lower annual fee
✅ Apply for credit cards in moderation 👉 Maintain a good credit score and avoid frequent applications
📌 Conclusion: Regret? That’s because you didn’t use it right!
Those who regret applying for a card often don’t understand the rules of credit cards and fall into the trap of interest, annual fees, and consumption.
But smart people know how to use credit cards to earn free air tickets, cashback, and travel benefits, easily saving thousands of dollars every year! ✨
📢 Now is the time to make the right choice!
💬 Have you ever regretted applying for a card? Or what benefits have you earned with a credit card? Welcome to leave a message to share! 📩