[ad_1]
Image source: Getty Images
We all know that we should be careful about who we take financial advice from. But in the age of social media, it’s easy to forget that not everyone on the internet is an expert. In fact, some of the people giving out advice on Instagram are downright dangerous. Here are some of the worst pieces of credit card advice we found on Instagram.
Balance transfer and repeat
There is nothing wrong with taking advantage of a 0% interest rate, especially if your current interest rate is high. One Instagram user recommends you continue to transfer your credit card debt to a 0% APR balance transfer promotion and repeat the process.
Discover: This card has one of the longest intro 0% interest periods around
More: Consolidate debt with one of these top-rated balance transfer credit cards
The problem becomes if you think you can do this endlessly. If not done properly, the costs can outweigh the benefits. If you struggle to pay your debt on-time, have bad credit, and can’t pay off your debt quickly, then all you will do is kick the can down the road. Unless your credit score is near the top, the 0% APR will only be for several months, and chances are the card’s interest rate will increase even more than you were paying before.
Why do credit card companies offer this? They hope that you will transfer your debt to them, they charge a fee (typically a percentage of the balance transfer), and hope that you will spend even more on the new card. If credit cards tempt you to spend more, then balance transfer will not be a good idea.
We promise to improve your credit score
When scrolling through Instagram posts on credit cards, I couldn’t help but notice how many credit repair and debt relief service companies promised to raise your credit score and negotiate with creditors to reduce your debt. The credit repair industry unfortunately is fraught with scams. They target consumers with significant credit card debt and demand money upfront, ranging anywhere from $100 to $300.
What they generally do, you can do yourself. If there are false negative items on your credit report, you can contact the credit bureaus directly to have them review it. If your credit issues go much further than that, go to a credit counseling agency. They are different from credit repair services and are typically free to use. These organizations will review your finances, debt and credit reports, and work with you to help you manage your debt and finances. Avoid any company that promises to do things that are too good to be true, and do research before working with any credit repair organization.
Use these credit cards
Another common type of Instagram posts are users recommending certain credit cards over others. All of this advice needs to be taken with a grain of salt. Some offer decent advice, while others are clearly steering you to their credit card’s affiliate link. This is how they make money. When you click on the link and get the card, then they get a commission on the sale.
Some credit card companies pay a higher commission amount, so it pays for users to push and recommend certain cards over others. Before you start clicking on a bunch of links and opening credit cards, be sure to compare credit cards to find one right for you. Also, keep in mind that every time you open up a credit card it hurts your credit score.
When it comes to financial advice, it’s important to be selective about who you listen to — especially on social media. Remember, just because someone has a big following doesn’t mean they know what they’re talking about when it comes to money matters. So before you take any advice about credit cards from Instagram influencers, make sure you do some research to see if it holds up. And if something sounds too good to be true? It probably is.
Top credit card wipes out interest until 2024
If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR for up to 21 months! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
[ad_2]
Image and article originally from www.nasdaq.com. Read the original article here.