Be careful! These 5 ways of swiping the card are quietly emptying your wallet!

⚠️ Be careful! These 5 ways of swiping your card are quietly emptying your wallet! 💸

Credit cards are supposed to be a tool that makes it easier for us to pay and manage our finances more intelligently, but if you swipe your card incorrectly, you may lose a lot of money invisibly, and even make your debt grow bigger and bigger! 😱

Do you have the following swiping habits? 👇

❌ Only pay the minimum repayment every time?
❌ Like “buy now and pay later”, but don’t know the interest?
❌ Accidentally fell into the trap of high handling fees?
❌ Didn’t pay attention to the hidden charging terms?
❌ Never redeemed your credit card points?

If you have been tricked, then you are probably being “quietly emptied of your wallet” by your credit card! Today, we will reveal the 5 most deceptive ways of swiping your card and teach you how to avoid these common traps! 💳🚨

🔥 1. Only pay the “minimum repayment” = let the bank make a lot of interest on you! 💰💀

There is a “Minimum Payment” on every monthly bill, which sounds very user-friendly, but do you know?

📌 The bank designed the “Minimum Payment” to keep you in debt for a long time!

📌 If you only pay the minimum amount, the remaining balance will continue to accumulate high interest!

📌 In the end, you may pay 2-3 times the interest for the same purchase!

💡 Real case:

Lisa’s credit card bill is $5,000, but she only pays the minimum payment of $100 per month.

Her credit card annual interest rate (APR) is 20%. If she keeps paying like this, it will take her 11 years to pay it off and pay more than $6,500 in interest! 😱

✅ The right way:

👉 Try to pay in full to avoid high interest.
👉 If you have trouble paying off the full amount, pay at least 2-3 times the minimum payment to speed up the repayment!
👉 Consider Balance Transfer to a 0% APR credit card to reduce the interest burden!

🔥 2. Installment (Buy Now, Pay Later) = Disguised high-interest loan! ⚠️

“Buy Now, Pay Later” (BNPL) seems to be a good choice. Many merchants will provide “interest-free installment” services, such as Klarna, Afterpay, Affirm, etc.

But is it really interest-free? Not necessarily!

📌 Some BNPL services are “interest-free in the early stage”, but if overdue, a penalty interest of more than 20% will be charged!
📌 Installment payments will increase your debt and affect your credit score!
📌 Some BNPLs will not be reported to the credit bureau immediately, but overdue will cause credit damage!

💡 Real case:

Mike used BNPL to buy a $1,200 laptop in 6 installments.

Due to one overdue payment, he was charged a $75 penalty interest, which greatly increased the total cost!

✅ Correct approach:
👉 Don’t use BNPL if you can buy it in full!
👉 If you must pay in installments, choose a 0% APR credit card instead of BNPL!
👉 Set up automatic repayments to avoid late fees due to negligence!

🔥 3. Cash Advance = Super expensive short-term loan! 💳💸

Some people use credit cards to withdraw cash directly from ATMs, which is called Cash Advance, but did you know?

📌 Cash withdrawals will immediately incur high interest (usually 20-30%)!
📌 There is usually an additional “withdrawal fee” for cash withdrawals, up to 3-5%!
📌 Unlike ordinary consumption, there is no “interest-free period” for cash withdrawals!

💡 Real case:

Sarah withdrew $500 from the ATM while traveling.

She was charged a $25 withdrawal fee and paid an additional $10+ in interest per month.

As a result, it took her 6 months to pay it off, paying more than $90 in additional fees! 😭

✅ Correct approach:
👉 Never use a credit card to withdraw cash!
👉 When you need cash in an emergency, use a savings account or debit card!
👉 If you are short of funds, consider applying for a low-interest personal loan instead of a credit card withdrawal!

🔥 4. Ignoring hidden credit card fees = your wallet is “secretly cut”! 💸

Many credit cards have hidden fees, such as:
📌 Annual Fee: High-end cards may charge $95-$550 per year!
📌 Foreign Transaction Fee: International purchases are charged an additional 3% fee!
📌 Late Fee: Late payments may be fined $25-$40!
📌 Overlimit Fee: Exceeding your credit limit may result in an additional penalty!

💡 The right approach:
👉 Read the fee terms carefully before applying for a credit card!
👉 If there is an annual fee, make sure the credit card benefits cover the cost, otherwise switch to a card with no annual fee!
👉 Avoid foreign transaction fees and choose a credit card that does not charge a Foreign Transaction Fee!

🔥 5. Not using credit card points and benefits = wasting money! 🎁

If you spend money on your credit card but never redeem your credit card points, you may be missing out on thousands of dollars in free benefits! 😱

📌 Most credit cards offer 1-5% cash back or points rewards!
📌 Many credit cards offer travel benefits, such as free airport lounge access, car rental insurance, etc.!
📌 Some credit cards allow points to be redeemed for cash, gift cards, or flight discounts!

💡 The right approach:
👉 Check your credit card points account regularly to make sure your points don’t expire!
👉 Redeem the best rewards, such as travel or cash back!
👉 Use credit cards with high cash back categories for daily purchases!

🎯 Conclusion: Be smart with your credit cards to avoid being emptied of your wallet!

❌ Stop paying the minimum payment!
❌ Beware of the hidden costs of BNPL instalments!
❌ Don’t use your credit card to withdraw cash!
❌ Pay attention to hidden fees to avoid being ripped off!
❌ Make full use of credit card points and benefits!

💡 What credit card scams have you experienced? Feel free to share your stories in the comments! 💬⬇️