Credit card

Here are the worst credit card tips we found on Instagram

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Think twice before following credit card tips on Instagram.

Key points

  • Balance transfers are tempting, but the costs can outweigh the benefits.
  • Do your research before working with credit repair services.
  • Don’t blindly ask for credit cards.

We all know we have to be careful 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 advice on Instagram are downright dangerous. Here are some of the worst credit card tips we found on Instagram.

Balance transfer and repetition

There’s nothing wrong with taking advantage of a 0% interest rate, especially if your current interest rate is high. An Instagram user recommends that you continue to transfer your credit card debt to a 0% APR balance transfer promotion and repeat the process.

The problem becomes if you think you can do it endlessly. If not done correctly, the costs can outweigh the benefits. If you’re struggling to pay your debt on time, if you have bad credit, and can’t pay off your debt quickly, then all you’ll do is throw the box out on the road. Unless your credit score is near the top, the 0% APR will only last for several months and the card’s interest rate will likely increase even more than what you were paying before.

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More: Consolidate your debt with one of these top-rated balance transfer credit cards

Why do credit card companies offer this? They hope you transfer your debt to them, they charge a fee (usually a percentage of the balance transfer) and hope you spend even more on the new card. If credit cards entice you to spend more, a balance transfer won’t be a good idea.

We are committed to improving your credit score

Scrolling through credit card Instagram posts, I couldn’t help but notice how many credit repair and debt relief service companies promised to boost your credit score and negotiate with creditors to reduce your debt. The credit repair industry is unfortunately riddled with scams. They target consumers with significant credit card debt and demand cash upfront, ranging from $100 to $300.

What they usually do, you can do yourself. If there are false negatives on your credit report, you can contact the credit bureaus directly to have them review it. If your credit problems go much deeper than that, talk to a credit counseling agency. They are different from credit repair services and are usually free. These organizations will review your finances, debts and credit reports and work with you to help manage your debts and finances. Avoid any company that promises to do things that are too good to be true and do your research before working with a credit repair organization.

Use these credit cards

Another common type of Instagram post is that users recommend certain credit cards over others. All of this advice should be taken with a grain of salt. Some offer decent advice, while others clearly direct you to their credit card affiliate link. That’s how they make money. When you click on the link and get the card, they get a commission on the sale.

Some credit card companies pay a higher amount of commission, so it is beneficial for users to push and recommend certain cards over others. Before you start clicking through a bunch of links and opening credit cards, be sure to compare credit cards to find one that’s right for you. Also, remember that every time you open 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 lot of followers doesn’t mean they know what they’re talking about when it comes to money. So before taking credit card advice from Instagram influencers, be sure to do some research to see if it holds up. What if something seems too good to be true? It probably is.

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