Shocking Credit Card Mistakes You Have To Hear To Believe
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- เผยแพร่เมื่อ 28 มิ.ย. 2024
- Comedian Tim Clue @FunnyMotivator - • Comedian Tim Clue Turn...
00:00 Intro
00:25 Credit Card Stats
02:22 Authorized User
04:11 Store Brand
05:25 Closing Accounts
06:35 Secured Card
08:36 Exceeding Limit
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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
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Thanks for watching, I appreciate you!
Prob my only CC story is that every CC company denied me except discover. I made it out of college with no debt/loans, so I had no credit history. I was making around 50k working full time, still living with my parents. I was getting tons of flyers in the mail about CCs and then they all rejected me. Like WTF. Anyway I've never really had an issue since.
Looks like you Discovered your way out.
Discover’s strategy is to be the first credit card college students get, so they are a bit more lenient 💛
8:50 a contractor I worked for didn’t use a business card 😅. So we watched him have to call the bank/card company “yeah it’s me at Home Depot buying 6,347 $ in materials 😅😂
Thanks Erin, always great content!
Loved the comedy clip...made me LOL. Can't believe how well done your videos are. You are very talented.
I made my payment a few days too early, so it counted for the prior month. Less than $4 balance left and they charged me a late payment fee, PLUS reduced my credit limit by half. I was so angry cuz I just made the $1200 something payment a few days EARLY, before the new billing cycle kicked in.
Ouch!
I pay off our credit cards the day the charge hits the account.
My biggest mistake was having a joint credit card with my ex (while married). She never felt like she was spending real money. Same with checks back then. Thirty one years later I’m happily married for 25 years to someone of the same mindset as me.
Great share!
I also tried to buy my vehicle using my card, but due to the fees Visa charges the merchant the dealership would only allow me to charge $5,000. The rest I had to get a cashier's check for. It sucked because my card gives me 3% cash back on everything.
Yep - $5k limit for new car purchases.
What card gives you 3% cash back on everything?
Been there, done that a couple of times. I only wish I could put every single transaction on my Fidelity card, 2% cashback straight to the brokerage account.
@@joeb1522no card exists that does that lmao...
well US altitude can or use to give 4.5% on all mobile wallet purchases.
So that could be everything that allows tap to pay
I always pay off the balance monthly and once I did pay but mixed up the numbers and paid $1.76 in interest. The only time in 40 years. Later that week I found a $5 bill, so I'm still ahead!
I paid $1.41 in interest on my heloc, last year. I was writing checks to GM because they would charge me a fee to make a payment. GM was putting them in a drawer rather than cashing them. I had paid off the car and already received the title, when they finally decided to cash a check they had held for 4 months. I had to transfer money to my checking account to avoid it bouncing. It took weeks to get my money back from GM.
The Uber credit card was great a when it first came out. It had no fees and offered 4% cash back on dining, 3% on travel and 2% on online purchases with no fee. It was nerfed 2 years after it was released, to become basically an Uber Store Card.
Interesting.
I'm viewing this from the UK, and obviously credit cards are accepted more widely here compared to the States. I bought a used car for about $20,000, and had no issue with paying using an American Express card to the dealership (useful for British Airways air mile points).
The local car repair shop - a single-man shop - actually prefers credit card, as the owner says it's safer and he doesn't have to take cash to the bank.
Quite a few shops now do not accept cash at all!
Some car manufacturers used to offer credit cards with points that accrued to your next car purchase. Those brand's dealers would accept a credit card for a purchase, since they owned their own banking and collected their own fees. You could not purchase across brands or use a non-manufacturer card for the purchase.
Great topic, thank you.
Glad to hear that Chase understood your mistake of paying 10 cents less and reversed the $50 charge. I work for them, actually in the credit card division in Wilmington, DE, so glad to know they are ethical about things. I can think of other banks who might not, but I don't want to say which ones. There are 2 banks that seem to have fees for everything. If a person made a mistake, I'm sure they would jump at the opportunity to get more money out of the customer.
The closing old accounts does not make any sense to me I close a card that I had for 20 years The history just doesn't go away... Why should it matter if its active or no?
you are correct. it's a common misconception that closing your cc dings your credit history. your credit score more than likely is dinged because of credit utilization since you've taken away a part of your credit limit. your cc history stays on your credit history for 10 years then falls off. By that time, your average should remain constant if you have multiple cards over the next 10yrs before that closed account drops off. since credit history is an average, if you only have two, one 20yrs and one 1yr, that will have an impact when the closed 20yr drops off. Keeping unused cc accts open but cutting them up can lead to bad habits like forgetting the acct is still open or forgetting to regularly check the account for unauthorized charges. Plus, cc issuers can and will close dormant accounts, so you need to periodically like once or twice a year use the card anyway otherwise the issuer will close it anyway. So, it makes really no sense to keep it open if you aren't going to ever use it again. Better to close account younger than older.
When you leave an old credit card open and don't use it, it will close eventually. I have a Sears credit card, which is now Citi bank. It is about 38 years old. Once or twice a year I use it then pay it off just so they don't close it.
Yeah I made the mistake of not using my Sears card for a few years and they closed it without warning 😤 I learned my lesson!
As I don't carry debt and intend to never get a loan again, the only reason that I even care about my credit score is because auto insurance rates are sometimes partly based on credit scores.
The last car dealership I was at said they would do up to $3,000 on a credit card
is opening an extension card for your child the same as being an authorized user. does it matter if they don't use it in terms of building their credit?
We've used a card to purchase a car. It had to be the entire purchase amount.
Houses can be purchased using a credit card, but a card can not be used for the down.
I won't set my credit cards to auto-pay because I want to check all the transactions and make sure they all line up with my expectations before the money comes out. I'm not a fan of auto-paying dynamic charges. It even took me a while to set up auto-pay for standard monthly charges like internet. I just like to be in control of when money leaves my possession, but especially if it's an unknown amount each time.
FYI - i have nearly everything on autopay. No stamps. No mail delays. I still review every bill every month. NO LATE PAYMENT FEES.
We have set our notifications so that we are aware of every charge as it happens.
Not on the bad deal side, but I have used my credit card to front the payment for one of my companies pieces of equipment. Pretty good 3%
Cash back bonus from that one. Oh and they reimbursed me before the balance even reported to the bureaus.
I bought a $14k car on our credit card in 2021.
In 2023, we were buying a $7k car and the dealer would only allow us to put $1.5k on the card. Had to drive home and grab the checkbook.
I don’t think the rules are standardized across the auto industry.
I had a similar thing, with the dealer only allowing a certain amount to be put on the card. They were willing to negotiate with me a little (like $500 vs $1000 on the card) but wouldn't put the whole down payment on the card.
dealerships are independently owned, so it's entirely up to the business owner whether or not they accept a credit card or limit on purchase. Frankly, it makes no sense that a full service dealership would limit to $1.5k, but accept over $1.5k charge for a repair. Now, if it wasn't a full service dealership (e.g. just a used car dealership only selling used cars), I could see them limiting charge because of the credit card transaction fee, although the dealership could just as easily passed that fee onto you.
I've paid all or most of a car with a CC. I've also had them say the have to charge 1.5% extra because of the CC fee. I think one also did like @shawnbrennan and only let me put part of it on a card.
As a college freshman I think I gave my SSN to a card sales rep on a cold call. It turned out ok (they weren't a scammer) and I already knew about grace periods and avoiding interest so when I got the card I hadn't realized I applied for I used it intelligently and built my credit score without even realizing it. But still super dumb.
Erin -
My wife and I were in Australia with everything at home on autopay. Unfortunately, one of her cards paid on AUS date vs USA date - and she got a late payment charge. Also took her credit score from 820 to 690. That was 4 years ago, and her credit score is back to 790. Fortunately we didn’t need her score - but the card issuer wouldn’t acknowledge the mistake or remove the late payment from her record.
That whole thing sucked!
Ugh! That’s terrible 😣
there's absolutely no way the score went from 820 to 690 based on late payment based on AUS vs US date differential that you mentioned. First, a late payment wouldn't get reported unless it was at least 30 days late, and last I checked there isn't a 30 day difference between AUS and US. Second, if you had everything at home set for autopay, even if on the due date, it wouldn't matter if you were in AUS or Mars, because the due date is the due date in the US. If there is a reporting issue, you need to file a reporting discrepancy with one of the three major credit reporting agencies (e.g. Equifax, Experian, or Transunion).
At the dealerships when I went I could put a portion on the card but only $7000 the rest I paid with a check( yes I did go right in and pay off the card I just could not turn down that many points on a purchase I already had cash for)
In our experience, it varies by dealership. I bought an older used car (about 3-4K a long time ok) from a small indy dealer entirely on a CC. Recently, dealerships have limited the CC amount to a few thousand (as a down payment/deposit) on the purchase price, the rest in a check. Some will take personal checks, while others require a bank check (which is a pain, but not that hard). Only had an auto loan once, when the promo rate was ridiculously low (like 1.9%) and banks were paying over 3% on money back then. Took the loan and pocketed the extra interest along the way.
I bought my used car in cash from a dealership and they still ran a credit check on me and said it was policy. Go figure.
Just wow. What if you did not give them permission to run a credit check? Would they have not let you buy the car from them?
I had the same back in 2012.....they insisted that I had to fill out a credit application to give them permission to see my score (despite the fact that I was going to my bank to get a money order).
I started walking towards the door and somehow between me getting up and going halfway to the door, their policy suddenly changed and a credit application was no longer necessary.
you could have said no.
Caught a glimpse of the ring at 2:48
Your husband is proud 👏🏻
😂 I’ll let him know it’s on in this video haha - probably won’t be on for the next 8 videos or so, (that’s how many I already have filmed) - but I am trying to get better at wearing it
Luckily, the biggest credit card mistake I’ve made is waiting too late to get one. My parents found Dave Ramsey when I was in HS so I thought credit cards were for chumps for way too long. It took an international trip and having to pay foreign transaction fees for me to change my mind. So much cash-back missed out on.
I had someone ask me if I applied for a Victoria secret card for a $31 purchase. I've tried to explain why it makes sense but my comments keep being deleted. It wasn't rude or vular. I'm just wondering why my explanation is being deleted
If you want to check, your comment should be there. After seeing this comment, I went into the section in the TH-cam studio of comments “held for review” - I found it in there, and I approved it. So it should be displayed.
Unfortunately, I can’t answer as to why, TH-cam put some comments there. I believe it’s an attempt to kind of filter out, spam, or aggressive comments. Because a lot of times I see those type of comments in there. But whatever filter system they use is quite awful, as I’m sure you have seen there are loads of comments from crypto spammers and investing spammers that are able to flood the comment section. So I wish it could genuinely catch those.
Mistake: I used a convenience check once to pay my credit card bill.
Target redcard is awesome
Target, however, not so much. They are woke.
I was 18, working part-time in a kitchen, and bought a car on a credit card.
Heh...
Back in the mid 1990s I had to go on a trip for work and I wanted to bring some cash. I didn't have an ATM card at the time, so I took a cash advance from my credit card. Ouch...
I still have never had a debit card and never used a cash machine. I'm heading to Vegas tomorrow for a boys' trip and I went into the bank and got some cash, other than that I always use a CC and never have a problem. I love Air Miles! :)
@@kirklandphil It's very different now than it was in the mid 1990s. How old are you? (I'm 51)
I bought a new truck in 2022 and the dealership let me put $6K of the $12K I put down on a credit card.
My biggest mistake was keeping a balance on my card. They sent me a year end statement that showed how much interest I paid over the course of the year. I was surprised at the amount ( I think it was close to $1,000 or something crazy!) and immediately set out to pay the card off and have NEVER (this was probably 25 years ago) paid a penny of credit card interest again! Regarding using a card for a down payment on a car - I was allowed to charge a couple thousand when I bought my last car but that was it.
Like your Dad when I was 19 I got a CC and had a 2500 limit, I went and bought my first car for 4,300, I paid 2000 cash and put 2300 on the CC, and the dealer sent it through and it worked. (I was told to do this by my college business professor) I paid off the card at the end of the month and it did help my credit score as I remember within three months they raised it to 4000 (Just as my teacher told us they would).
In 1988 when I tried to do it again I was told they don't allow CC down payments anymore even though I had the remainder in cash. My Mom told me back then CC companies did not charge the fee to large charges as they hoped the person doing it would not pay it off. But at some point, I guess the CC companies said it was not working and wanted their 3%. At 66 I have yet to pay interest on a CC but I know I pay a yearly fee on my CC but the air miles help.
Back when I started college, they were handing out credit card applications on campus like candy. So I got one and got my first credit card. Then I used that card and bought a new computer...
And started making minimum payments. And kept doing that... for ages...
I did eventually pay it off, but I decided to figure out how much that $1K computer (I used $500 of my own money and it was a $500 max limit card) actually cost me.
It was multiple thousands of dollars on the card, as I was just doing the minimum payment for years.
It did teach me a good lesson about interest and credit cards tho... ;-)
Your credit card story is the reason I autopay the _statement balance_ every month. I sometimes pre-pay, but this guarantees I'll get my statement balance paid off at minimum, no matter what
Yep…they are modern day loan sharks.
Am I first? Such an accomplishment! 😁
After all these years, you’ve finally made it.
Way to go!
@@kinpatu thank you, thank you very much! 🤣
It's so hard to win this when you live on the West Coast. Got to stop sleeping in. :) Congrats!
@@kirklandphil 🤣🤣
I was only allowed to put $2000.00 on the credit card when I bought my car in 2020
I've never heard of that high of a limit. It makes sense to put however much you can on a credit card so you can get the reward points, (assuming you will pay off the credit card immediately). Usually dealerships don't like to pay the credit card fees so they limit it to $500. (that is my experience anyway)
@@Iffy50 I have 25000
Tried buy a used 2012 ford escape back in nov 2019, with credit card, it was 9000, they refused. Said it wasn’t the fees, that they got burned a couple times when the people disputed the charge after getting the car
They said they eventually got their money but took 3 months
It sickens me how these creditors pray on people who don't understand debt.
Prey vs Pray
It saddens me that decades of capitalism encouraging consumption has normalized huge non-mortgage debt and pathetic personal savings rates. As anyone with a normal income knows, it's getting tougher out there with inflation and rising rents/mortgage rates. If you can't figure out how to tighten your belt and start serious saving/investing, you're headed for a world of hurt when you're old...
This documentary is over a decade old already. Things are ten years worse for these people. Don't be one of them.
th-cam.com/video/lkOQNPIsO-Q/w-d-xo.html
@@dstevens518 True - people (on the whole) do not seem to have self control. I will take CAPITALISM over SOCIALISM any day.
it sickens me that parents don't teach their kids about personal finances. It further sickens me that people blame others for their own adult decisions rather than taking personal responsibility for their choices. Creditors don't force people to sign that dotted line for a credit card or use their credit card.
@@hanwagu9967 amen!
Didn’t happen to me, but when my ROTC classmate was commissioned he went out and bought a sports car. He put the down payment on an AMEX card not realizing that the card balance had to be paid off at the end of the month. One of the class advisors, a Navy Lieutenant, floated him a loan. Now, in my classmate’s defense, he was a crayon eating Marine.
I showed a date all of my bank cards and she thought it was weird I didn't have a credit card. Never had debt so why would I?
Having a credit card doesn't mean you automatically have debt. "Credit card debt" only refers to carrying over your statement balance month after month. If you pay it off every month, it's not debt.
Her question was "how do you buy things you can't afford?" I don't.
@@joeriveracomedy Well that's good lol definitely don't do that
I was looking at a new credit card that would reward you with cash ($250 or $500 I think) if you spent X amount on it within the first three months. I knew that regularly I'd never hit that X amount, but I also had a vacation I'd been planning for. So I signed up for the card a month before the vacation, put the hotels and other little things on it, paid it off at the end of the month, and got my cash reward.
Paying one credit card with another credit card.
making charges in excess of 10 k like purchasing an automobile would be flagged for money laundering. This is why they are no longer allowed.
this is a urban legend. There is no legal prohibition against paying for a car by credit card, and making a charge in excess of $10k does not flag you for money laundering. You are confusing a couple things. There is a $10k threshold reporting requirement for cash payments and cash deposits, but not for credit card charges. Dealerships may not want to accept a credit card to pay for a car, because of the credit card transaction fee the card company charges. Conceivably, the dealership could just pass that charge on to you. You'd have to square your $10k+ charge belief with the fact dealerships readily accept cc to pay for repairs, services, parts, etc that can exceed $10k, too; moreover, dealerships do allow down payments/deposits on a cc, which I've seen exceed $10k, too. But let's assume your statement is somehow correct, reporting doesn't equate to prohibiting. Just like banks will accept $10k+ cash deposit or $10k+ cash payments, and have to report the transactions, but it doesn't mean just because it is flagged/reported that they can't/won't accept the cash unless there is some very specific reason linking illicit activity. BTW, even though the $10k is a mandatory trigger for reporting cash transactions, any company or financial institution accepting cash payments or cash deposits has the option to report anything under $10k.
Victoria secret has a great deal on getting a card. I took my teenage daughter on her first Victoria secret shopping trip. She got 2 bras and 2 panties for $31.
Creepy
@@robloxvids2233 How is it creepy?
@@robloxvids2233 It's creepy knowing that women wear bras and panties? It's creepy for a mom and daughter to go shopping together? It's creepy that my daughter applied for a credit card to get $25 off her purchase? What's creepy old dude?
VS is so woke that I stopped buying anything for my gf from there.
@@southbound1969 That's just because they thought it was good for business. My daughter is tall and thin. She needed someone to help with measurements and fitting. The lady running the store was very kind and helpful. I couldn't have asked for a better shopping experience. Plus my daughter gets to wear clothes that actually fit her properly. That's the main goal.
Credit cards are a valuable tool if you use them correctly. Credit cards can add up to hundreds of dollars each year. I bet Dave Ramsey never taught you that:)
Credit card rewards
I have zero credit card debt, but $34T of national debt.😞
And rising fast
Sorry.
Protect Our Borders! Balance the Budget!!!