4 “Smart” Credit Card Moves that are Actually Dumb

Getty Images
Getty Images

Used wisely, credit cards can help build your credit score and earn you sweet perks. But to get smart about the plastic in your wallet, you have to shake free from common myths that can actually tank your score or cost you unnecessary money. 

1. YOU RELY EXCLUSIVELY ON A DEBIT CARD.

The perks of debit are clear: It’s harder to overspend than if you use a credit card, and you can’t work yourself into a mountain of debt. That debt aversion might explain why those of us who got our financial footing during the Great Recession are more leery of credit than other generations: According to a Bankrate survey, two-thirds of people ages 18 to 29 don’t have a credit card, compared with only one-third of people over 30.

“But it’s dangerous to assume that all plastic is treated the same way by credit reporting and scoring agencies,” says credit expert John Ulzheimer, who spent years at FICO and Equifax. “Only credit cards make it onto your credit report, so if you avoid them you’re really not doing anything to help your credit score or establish your credit report.”

Even if you don’t plan to apply for a car loan or mortgage anytime soon, when you are ready to apply, those lenders will factor the age of your credit report into their decision. Opening a credit card in your 20s will mean you have a more, ahem, mature credit report than if you open one in your 30s, which can help you get a better or bigger loan—even if your finances are otherwise unchanged.

The Truly Smart Move: Go ahead and apply for a credit card (free services like Credit Karma can help you determine the appropriate card). If you’re worried the new piece of plastic will tempt you to splurge beyond your means, don’t keep it in your wallet. 

2. YOU CARRY A SMALL BALANCE EACH MONTH.

Credit scoring agencies want to see that you’re using your credit cards regularly, because that signals that you can responsibly handle the credit available to you. But somehow that truth morphed into a widespread myth that you shouldn’t pay your bill in full.

“Carrying a balance from month to month will just cost you interest and won’t help your credit score,” says Bethy Hardeman, chief consumer advocate at Credit Karma. In fact, it could hurt it, because lenders look at how the amount of your current balances compares with your total credit card limits. The lower the balance, the better.

So how do you prove regular use and earn your financial brownie points? Relax—credit card companies do the work for you. When you swipe your way to a $200 balance on your Visa, the company reports that amount to the credit reporting agencies at the same time that it issues you a bill. You can then pay that balance (in full!). And keep in mind that regular use doesn’t mean you have to use the card monthly or hit a certain spend threshold. Modest use every couple of months works just fine.

The Truly Smart Move: Set a calendar reminder so you pay your balance in full and on time to avoid getting hit with late fees. And if you find that “regular use” is turning into “regular splurges,” use your card to set up auto-pay on a boring bill instead. It’s tougher to be tempted to go on an electricity spree.

3. YOU DECLINE A CREDIT LIMIT INCREASE.

When Visa mails you an offer to increase the credit limit on one of your cards, you demur. Time for a pat on the back, right? Not quite. When FICO determines your credit score, one of the biggest numbers it looks at is your revolving utilization. Also known as credit card usage percentage or balance-to-limit ratio, this is basically a fancy way of saying how much you owe on your credit cards compared with how much your total limits are. “If you owe $500 on a card with a $500 limit, you’ll have a lower score than someone who owes $500 on a card with a $5,000 limit,” says Ulzheimer. 

To calculate your current revolving utilization, divide your balance by the credit card limit and multiply by 100. Quick example: If you owe $1,000 on a card with a limit of $2,500, your revolving utilization of that card is 40 percent. While 40 percent might sound boss at first blush, consider that consumers with the highest credit scores tend to have revolving utilizations under 10 percent.

One way to better your revolving utilization is to pay down your balances. But another is to increase the credit limits on existing cards. So the next time MasterCard extends an offer, think twice before you decline.

The Truly Smart Move: Many credit card companies will reassess your limit every three years or so, when they reissue your credit cards. But you can also proactively ask for an increase. You’re more likely to secure a higher limit if you’re a low-risk consumer: You use your cards regularly and pay your bill on time. 

4. YOU CANCEL SOME OF YOUR CREDIT CARDS.

Maybe your wallet is crazy cluttered with a million cards and you’re looking to streamline. Or maybe you’re sick of all the temptation that comes with having multiple cards. Or maybe you think having one card is safer when it comes to identity theft. No matter what your motivation, closing a credit card will ding your credit score, because it reduces your revolving utilization.

“Never, ever close a credit card,” says Ulzheimer. “The only time a card should be considered for the chopping block is if it has a huge annual fee and you’re planning to never use it again.” It’s especially worth waiting, he says, if you plan to apply soon for any type of credit, including an auto loan or student loan.

As for identity theft, keep in mind that if your account info is somehow stolen, all four of the major credit card networks offer total fraud liability. That means, if you spot a suspicious charge on your statement and you report it to the credit card company, you’ll pay nada.

The Truly Smart Move: The best way to kill both clutter and temptation—without wounding your credit score—is to shred the plastic you don’t want to use anymore. If you ever decide to start using that particular credit card again, you can put in a call to the company and have the card reissued at no expense.

From Abe Lincoln Chia Pets to FDR Baseballs: 11 Products to Celebrate President’s Day

iStock.com/malerapaso
iStock.com/malerapaso

While President’s Day originated in 1885 as a holiday celebrating George Washington, it has now grown to recognize all 44-and-counting chief executives in U.S. history. If you’re feeling truly patriotic, check out these 11 incredible products inspired by some of the most distinguished leaders to hold America's highest office, and feel free to gift them to your favorite future politician.

1. George Washington’s Teeth Magnet

George Washington's illustrious hair may have been totally real, but his teeth certainly weren’t. In fact, Washington had only one real tooth left in his head when he was sworn in as president, and he wore several sets of dentures throughout his life (though none of them were made of wood, as the legend claims). Mount Vernon has one of the last surviving sets—made of human and cow teeth—in its collection, and fans can get a copy of the historic chompers in the form of a fridge magnet.

Buy it from George Washington’s Mount Vernon for $10.

2. John Adams Mouse Pad

A John Adams mousepad
MyHeritageWear, Amazon

Compared to the other Founding Fathers, John Adams doesn't get much love. There's reason to admire the pugnacious leader, though: He may have been the nation’s second-ever president, but he was second to none when it came to dishing out insults. If you’re looking for a subtle way to pay tribute to Adams, this mouse pad will do the trick. After all, who doesn't want a president at their side in the office?

Buy it on Amazon for $10.

3. Founding Fathers Gift Box

If you’re looking for other ways to honor the Founding Fathers, this commemorative gift box includes four hefty Old Fashioned tumblers bearing the likenesses of old-fashioned presidents James Madison, Thomas Jefferson, George Washington, and John Adams. The glasses—which are made in America—are the perfect way to toast the country's early leaders. They'd also be a great accessory for your next Drunk History marathon. (As would Fishs Eddy's many other politician-themed kitchenware products, for that matter.)

Buy it from Fishs Eddy for $22.

4. Abraham Lincoln Chia Pet

A Chia Pet Abraham Lincoln
Chia, Amazon

Honest Abe is known for a great many things: leading the United States through the Civil War, abolishing slavery, and—according to Hollywood—maybe being a vampire hunter. However, we rarely celebrate his very lush head of hair. (Though a few strands of it did sell for $25,000 in 2015.) This Chia Pet planter offers a way to spice up your kitchen while honoring the classic elegance of the 16th president's silhouette. The handmade statuette grows a full head of presidential chia-sprout hair in one to two weeks and includes quotes from President Lincoln transcribed on its sides.

Buy it on Amazon for $26.

5. Edmund Morris’s Theodore Roosevelt Trilogy

A set of three Edmund Morris books on Theodore Roosevelt
Random House, Amazon

This Pulitzer-Prize-winning biographical trilogy on Theodore “Teddy” Roosevelt from Edmund Morris is a must-have for all the TR fans out there. Written over the course of more than 30 years, Morris's opus is considered essential reading for any Roosevelt scholar, and it's well worth the money. As The New York Times wrote in its review of the first volume in 1979, it's a “splendid, galloping narrative of the great galloper. The insights are keen. The pages turn quickly. There are few who will not get from it a more satisfying conception of the man almost everyone thinks he knows … It is one of those rare works that is both definitive for the period it covers and fascinating to read for sheer entertainment.”

Buy it on Amazon for $78.

6. FDR Collectible Baseball

Like many Americans, Franklin Delano Roosevelt had an intense love of baseball. He even argued that the national past time was an essential morale booster during World War II, ensuring that the league could continue playing throughout the war. He made eight Opening Day appearances during his presidency, and this collectible baseball is a perfect monument to one of them. The custom ball features a photograph of FDR throwing the ceremonial first pitch for the 1935 Opening Day game between the Washington Senators and Philadelphia Athletics at Griffith Stadium in Washington, D.C.

Buy it from the National Archives store for $7.

7. "Dewey Defeats Truman" Ceramic Tile

The result of the 1948 presidential election between incumbent Democrat Harry S. Truman and Republican challenger Thomas E. Dewey was, by all accounts, one of the greatest upsets in history. Nearly every analyst at the time got their predictions wrong, including the Chicago Daily Tribune (now just the Chicago Tribune), which led to the famous photograph that helped cement the election's legacy in American politics—and media history—forever. While history nerds would surely appreciate a copy of the actual newspaper, this option from the National Archives is a joyously clever alternative.

Buy it from the National Archives store for $7.50

8. JFK for President Mug

For political history buffs and design obsessives alike, this mug is a throwback to the campaign posters made by John F. Kennedy when he ran for president in 1960. The mug is emblazoned with JFK's own smiling mug as well as his 'Leadership for the 60's" slogan. (You can see one of the originals at the Library of Congress.)

Buy it from the John F. Kennedy Presidential Library and Museum for $15.

9. Lyndon B. Johnson Bobblehead

A Lyndon Johnson bobblehead depicting the president holding a dog
Royal Bobbles, Amazon

Lyndon B. Johnson—who assumed the presidency following the assassination of John F. Kennedy on November 22, 1963—is best known for his "Great Society" programs and his role in passing laws like the Civil Rights Act and Medicare. This bobblehead in his likeness from Royal Bobbles, however, represents another side of LBJ: his love for dogs. Johnson and his family were often photographed with their beloved beagles, Him and Her, as well as subsequent White House pets Freckles, Edgar, Blanco, and Yuki. (Royal Bobbles doesn't specify which dog this design is based on.) Standing over 8 inches tall, the bobblehead comes with a collector’s box to keep it pristine, because you'll want to display it prominently.

Buy it on Amazon for $26.

10. Presidential IQ Trivia Game

The 'Presidential IQ' card game on a table
Presidential IQ, Amazon

If you're like us, you love some good-old-fashioned trivia—and almost 250 years of presidential history has left us with a bevy of facts to mine for questions. Featuring 1200 questions across a number of categories, including famous quotes, foreign affairs, and geography, Presidential IQ is perfect for game night.

Buy it on Amazon for $25.

11. 1000-Piece U.S. Presidents Jigsaw Puzzle

A puzzle with all of the U.S. presidents surrounding a map of the United States
White Mountain Puzzles, Amazon

This puzzle by White Mountain illustrates the entire presidential timeline of the United States with portraits of each of the presidents and a map of notable historical sites relating to the former chief executives. In addition to stimulating your brain, it provides a great opportunity to plan your next presidential road trip.

Buy it on Amazon for $18.

11 Words You Might Not Realize Come From “Love”

iStock.com/PeopleImages
iStock.com/PeopleImages

1. BELIEVE

In Old English, believe was geliefan, which traces back to the Germanic galaubjan, where laub is the root for “dear” (so “believe” is “to hold dear”). Laub goes back to the Proto-Indo-European root for “love,” leubh.

2. FURLOUGH

We got furlough from the Dutch verlof, which traces back to the same Germanic laub root as in believe. It is also related to the sense of leave meaning "allowance" or "permission" (“get leave,” “go on leave”). The “leave” in a furlough is given with pleasure, or approval, which is how it connects back to love.

3. FRIDAY

Old English Frigedæg was named for Frigg, the Germanic goddess of love (and counterpart to the Roman Venus). According to the OED, frīg was also a noun for “strong feminine” love.

4. VENOM

Venom comes from the Latin venenum, which shares a root with the love goddess Venus, and originally referred to a love potion.

5. AMATEUR

The root of amateur is Latin amare, “to love.” An amateur practices a craft simply because they love it.

6. CHARITY

The Latin caritas, which ended up as charity in English, was a different kind of love than amor, implying high esteem and piety, rather than romance and passion. It was used to translate the Ancient Greek agape, the word used in the New Testament to express godly love.

7. PHILOSOPHY

Greek had another word for love, philia, that—in contrast to agape and eros (sexual love)—meant brotherly or friendly love. It’s used in many classical compounds to signify general fondness or predilection for things. Philosophy is the love of sophos, wisdom.

8. PHILANTHROPY

This one means love of anthropos, humanity.

9. PHILADELPHIA

You might know it as the “city of brotherly love,” but you might not know that the tagline is right there in the name. It’s love for adelphos, brother.

10. PHILIP

The name Philip comes from the compound phil- + hippos, love of horses.

11. ACIDOPHILUS

Have you been taking acidophilus probiotic supplements for digestive health? It’s made from acid-loving bacteria, i.e., bacteria that easily take up an acid dye for viewing under the microscope.

This list originally ran in 2015.

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