Trick Or Treat: Credit cards can have some Halloween frights too

Published: Oct. 28, 2021 at 11:37 AM EDT|Updated: Oct. 29, 2021 at 8:00 AM EDT
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RICHMOND, Va. (WWBT) -Trick-or-treat is a great analogy when it comes to using credit cards.

If you use them carefully, they can benefit you - and there’s your treat. But if you overspend or miss a payment, you are headed for a trick.

Let’s start with the positives or the “king-size” candy bars in the neighborhood of credit cards. In the long run, using credit responsibly builds your net worth. The higher your credit score, the lower your interest rate.

That means you can own those big purchases, or assets, faster than those with higher interest rates. Another king-size perk is reward points. If you use your credit card wisely, you can rack up points to pay for things like flights.

“There’s a way to kind of work the system, but you have to be careful,” Cherry Dale, with the Virginia Credit Union, said. “A tricky part comes in, especially if there’s interest involved.”

That leads us into the negatives or the “box of raisins” house in the neighborhood.

If you miss a payment or get in over your head when it comes to debt, that can leave your bank account looking like a 5-year-old’s Halloween bucket on Nov. 1 - EMPTY!

A great tip for protecting your money is to only use a credit card when shopping online because if criminals steal your information, they’re not able to wipe out your checking account.

Copyright 2021 WWBT. All rights reserved.

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