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This Is the One Credit Card Feature You Should Never Use

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Credit cards are a staple in most people’s wallets, offering convenience, rewards, and even a sense of financial security. But as handy as they are, not every feature is designed with your best interests in mind. In fact, there’s one credit card feature that can quietly drain your bank account, trap you in debt, and sabotage your financial goals. If you’re not careful, using this feature could cost you hundreds—if not thousands—of dollars over time. So, what is this notorious feature, and why should you steer clear? Let’s break it down so you can make smarter choices with your credit card.

If you’ve ever found yourself in a financial pinch, you might have been tempted to use this feature. After all, it’s marketed as a quick fix for emergencies or cash flow problems. But before you reach for your card, it’s crucial to understand the risks and long-term consequences. Here’s everything you need to know about the one credit card feature you should never use—and what to do instead.

1. Cash Advances: The Hidden Trap in Your Wallet

Let’s get straight to the point: the one credit card feature you should never use is the cash advance. On the surface, cash advances seem like a lifesaver. Need cash fast? Just swipe your card at an ATM or bank, and you’re good to go. But here’s the catch—cash advances come with sky-high fees and interest rates that start accruing immediately. Unlike regular purchases, there’s no grace period, so you’re charged interest from the moment you take out the money.

According to the Consumer Financial Protection Bureau, cash advances often carry an interest rate that’s several percentage points higher than your standard purchase APR. Plus, you’ll likely pay a cash advance fee, typically 3% to 5% of the amount withdrawn. That means if you take out $500, you could pay $25 in fees immediately before interest even kicks in.

2. Why Cash Advances Are So Expensive

You might wonder why cash advances are so much more expensive than regular credit card purchases. The answer lies in how credit card companies structure these transactions. Lenders consider cash advances riskier, so they offset that risk by charging higher rates and fees. But for you, the consumer, this means paying a premium for quick cash.

Interest on cash advances can easily exceed 25% APR, and as mentioned earlier, it starts accruing immediately. There’s no “free ride” period like you get with regular purchases. On top of that, most credit cards don’t allow you to use payments toward your cash advance balance until you’ve paid off your purchase balance, making it even harder to get out of debt.

3. The Debt Spiral: How Cash Advances Trap You

It’s easy to see how cash advances can lead to a debt spiral. Let’s say you’re short on rent and take out a $500 cash advance. With a 25% APR and a 5% fee, you’re already starting $25 in the hole, and interest is piling up daily. If you can’t pay it off quickly, that $500 can balloon into $600 or more in just a few months.

Worse, relying on cash advances can become a habit, especially if you’re using them to cover basic expenses. This cycle can quickly erode your financial stability and damage your credit score. According to Experian, frequent cash advances are a red flag to lenders and can make it harder to qualify for loans or better credit cards in the future.

4. Better Alternatives to Cash Advances

If you’re facing a financial emergency, knowing there are better options than a cash advance is important. Consider reaching out to your bank or credit union for a small personal loan, which usually comes with lower interest rates and more manageable repayment terms. You might also explore a 0% APR balance transfer offer, giving you time to pay off debt without raising interest.

Other alternatives include borrowing from friends or family, negotiating payment plans with creditors, or even using a reputable payday advance app (with caution). The key is to avoid the instant gratification of a cash advance and look for solutions that won’t cost you a fortune in the long run.

5. How to Avoid the Temptation

Credit card companies make it easy to access cash advances, but you can take steps to avoid falling into the trap. First, know your card’s terms—read the fine print so you’re aware of the fees and interest rates. Next, remove your PIN from your wallet or phone so you’re not tempted to use it at an ATM. Finally, build an emergency fund, even if it’s just a few hundred dollars, so you have a buffer when unexpected expenses pop up.

If you’re struggling with debt, consider reaching out to a nonprofit credit counseling agency for help. They can work with you to create a budget, negotiate with creditors, and develop a plan to get back on track.

Protect Your Wallet: Make Smart Credit Card Choices

At the end of the day, your credit card should be a tool that helps you, not a trap that holds you back. By steering clear of cash advances—the one credit card feature you should never use—you’ll save money, avoid unnecessary debt, and keep your financial goals within reach. Remember, there are always better options out there, and a little planning can go a long way toward protecting your wallet.

What about you? Have you ever used a cash advance, or do you have tips for avoiding this costly feature? Share your experiences in the comments below!

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7 Clues You’re Spending Irresponsibly and No One Cares Until You Can’t Pay

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Have you ever looked at your bank account and wondered, “Where did all my money go?” If so, you’re not alone. In today’s world of easy credit, one-click shopping, and endless temptations, spending irresponsibly without even realizing it is easier than ever. The real danger? Most people around you won’t notice—or care—about your spending habits until you’re in trouble and can’t pay your bills. That’s why it’s crucial to recognize the warning signs of irresponsible spending before it’s too late. By spotting these clues early, you can take control of your finances, avoid unnecessary stress, and build a more secure future for yourself and your loved ones.

Below, we’ll walk through seven telltale signs that you might be spending irresponsibly. Each clue comes with practical advice to help you get back on track. Remember, financial responsibility isn’t about deprivation—it’s about making choices that support your goals and well-being.

1. You’re Living Paycheck to Paycheck

If your bank balance hits zero just before payday, it’s a major red flag. Living paycheck to paycheck means you’re spending everything you earn, leaving no room for savings or emergencies. According to a 2024 survey by LendingClub, 62% of Americans are in this boat, and it’s a stressful place to be. The problem isn’t always income—it’s often spending. Start by tracking your expenses for a month. You might be surprised at how much goes to non-essentials. Building even a small emergency fund can break the cycle and give you breathing room.

2. You Rely on Credit Cards for Everyday Purchases

Credit cards can be helpful, but if you’re using them to cover groceries, gas, or other basics because your cash runs out, it’s a sign of irresponsible spending. This habit can quickly spiral into debt, especially if you’re only making minimum payments. The average credit card interest rate in the U.S. is now over 20%. To regain control, try switching to a cash-only system for daily expenses. This makes your spending more tangible and helps you stick to a budget.

3. You Don’t Know Where Your Money Goes

If you can’t account for your spending at the end of the month, you’re not alone—but it’s a clue that you’re not managing your money responsibly. Many people underestimate how much they spend on small, frequent purchases like coffee, takeout, or streaming services. These “invisible” expenses add up fast. Use a budgeting app or a simple spreadsheet to categorize your spending. Awareness is the first step toward change, and you might find easy places to cut back without feeling deprived.

4. You Frequently Make Impulse Purchases

We’ve all been tempted by a flash sale or a “limited time offer,” but it’s time to take notice if impulse buys are a regular part of your routine. Impulse spending is often driven by emotions—boredom, stress, or even happiness. Retailers know this and design their marketing to trigger those feelings. To combat this, implement a 24-hour rule: wait a day before making any non-essential purchase. Often, the urge will pass, and you’ll save money for things that truly matter.

5. You Avoid Looking at Your Bank Statements

If you dread checking your bank account or credit card statements, it’s a sign that you’re not comfortable with your spending habits. Avoidance only makes things worse, as small problems can snowball into big ones. Make it a habit to review your accounts weekly. This helps you catch errors or fraud and keeps your spending in check. Facing your finances head-on can empower you to make positive changes.

6. You Have No Savings or Emergency Fund

Not having any savings is a classic sign of irresponsible spending. Life is unpredictable—cars break down, medical bills pop up, and jobs can be lost. Without a financial cushion, you’re one unexpected expense away from crisis. Experts recommend setting aside at least three to six months’ living expenses. If that feels overwhelming, start small. Even saving $10 a week adds up over time and builds the habit of paying yourself first.

7. Your Friends and Family Are Worried (But You Brush It Off)

Sometimes, the people closest to you notice your spending habits before you do. If friends or family have expressed concern—or if you find yourself hiding purchases or lying about money—it’s a clue that your spending may be out of control. Instead of getting defensive, listen to their feedback. They care about your well-being and may offer valuable perspective. Consider talking to a financial advisor or counselor if you need extra support.

Turning Awareness Into Action: Your Financial Wake-Up Call

Recognizing these clues is the first step toward financial responsibility. Most people won’t intervene or even notice your spending habits until you’re unable to pay your bills. By taking action now—tracking your expenses, building savings, and making mindful choices—you can avoid financial stress and create a proud future. Remember, responsible spending isn’t about saying “no” to everything; it’s about saying “yes” to what truly matters.

Have you ever caught yourself spending irresponsibly? What changes did you make? Share your story in the comments below!

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7 Big Companies That Profit When You Stay in Debt

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Staying in debt isn’t just a personal struggle—it’s big business. Every year, billions of dollars flow into the pockets of companies that profit from debt, making it harder for everyday people to get ahead. If you’ve ever wondered why it feels like escaping debt is so tough, you’re not alone. The truth is, entire industries are built around keeping you in the red. Understanding who these companies are and how they operate is the first step toward taking back control of your finances. Let’s pull back the curtain and see exactly who benefits when you’re stuck in debt—and what you can do about it.

1. Credit Card Companies

Credit card companies are some of the most well-known companies that profit from debt. They make money primarily through interest charges, late fees, and annual fees. According to the Federal Reserve, the average credit card interest rate in the U.S. hovers around 20%, even higher for those with less-than-stellar credit. If you only make minimum payments, you could pay double or triple the original amount you borrowed. To avoid falling into this trap, always aim to pay more than the minimum and consider transferring your balance to a card with a lower interest rate if possible.

2. Payday Lenders

Payday lenders are notorious for targeting people in financial distress. These companies offer short-term loans with sky-high interest rates, sometimes exceeding 400% APR. While they market themselves as a quick fix for emergencies, payday lenders are among the most aggressive companies that profit from debt. Many borrowers end up rolling over their loans, sinking deeper into a cycle of debt. If a payday loan tempts you, look for alternatives like local credit unions, payment plans with creditors, or even borrowing from friends or family.

3. Student Loan Servicers

Student loan servicers are the middlemen who manage your student loan payments. While they don’t set the interest rates, they profit from servicing your debt for as long as possible. The longer you stay in repayment, the more money they make in servicing fees. Some servicers have even been accused of steering borrowers into costly forbearance or deferment options instead of more affordable repayment plans. If you have student loans, educate yourself about all your repayment options and don’t hesitate to ask questions or seek help from a nonprofit credit counselor.

4. Auto Finance Companies

Auto finance companies make it easy to drive off the lot with a new car, but also profit from interest on auto loans. Many buyers focus on the monthly payment rather than the total cost, leading to longer loan terms and more interest paid over time. Some auto lenders even specialize in subprime loans, charging higher rates to those with poor credit. To avoid overpaying, shop around for the best rates, consider buying used, and don’t be afraid to negotiate both the car’s price and the loan terms.

5. Debt Collection Agencies

Debt collection agencies buy unpaid debts for pennies on the dollar and then aggressively pursue payment. These companies that profit from debt are vested in keeping you on the hook for as long as possible. They may use intimidating tactics, frequent calls, and even legal threats to collect. If a debt collector contacts you, know your rights under the Fair Debt Collection Practices Act (FDCPA) and don’t be afraid to request written verification of the debt. Sometimes, negotiating a settlement or working with a credit counselor can help you resolve the debt for less than the full amount owed.

6. Big Banks

Big banks are deeply invested in the debt game. Banks collect billions in interest and fees every year from mortgages to personal loans. They also profit from overdraft fees, which can add up quickly if you live paycheck to paycheck. According to the Consumer Financial Protection Bureau, banks collected over $15 billion in overdraft and non-sufficient funds fees in a year. To minimize your exposure, set up account alerts, keep a buffer in your checking account, and explore banks or credit unions that offer low- or no-fee accounts.

7. Credit Reporting Agencies

Credit reporting agencies like Equifax, Experian, and TransUnion don’t lend money, but they play a crucial role in the debt ecosystem. These companies that profit from debt sell your credit information to lenders, insurers, and even employers. They also make money from credit monitoring services and identity theft protection products. Errors on your credit report can keep you in debt longer by raising your interest rates or denying you access to better financial products. Check your credit report regularly (you’re entitled to a free report from each agency annually at AnnualCreditReport.com) and dispute any inaccuracies you find.

Breaking the Cycle: Take Back Your Financial Power

Now that you know which companies profit when you stay in debt, you’re better equipped to break free from their cycle. The key is awareness and action. Start by tracking your spending, planning to pay down high-interest debt, and seeking trustworthy financial advice. Remember, every dollar you pay off is a dollar that doesn’t go into the pockets of companies that profit from debt. You have more power than you think—use it to build a future where your money works for you, not against you.

What about you? Have you ever felt trapped by one of these companies? Share your story or tips in the comments below!

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What Does The CV On The Back of Your Credit and Debit Card Mean

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Have you ever wondered about that mysterious three-digit number on the back of your credit or debit card? You’re not alone! The CV, or Card Verification Value, is a small but mighty security feature that greatly protects your money. In a world where online shopping and digital payments are the norm, understanding what the CV means—and how it works—can help you keep your finances safe. Whether you’re a seasoned cardholder or just starting out, knowing the ins and outs of your card’s security features is essential. Let’s break down what the CV on your card really means, why it matters, and how you can use it to your advantage.

1. What Is the CV, and Where Can You Find It?

The CV, often called CVV (Card Verification Value), is a three-digit number printed on the back of most credit and debit cards, usually to the right of the signature strip. For American Express cards, it’s a four-digit number on the front. This code is not embossed like your card number; it’s printed, making it harder for thieves to copy if they only have access to a physical imprint. The CV is designed to add an extra layer of security, especially for transactions where the card isn’t physically present, like online or over-the-phone purchases. If you’re ever asked for your CV, the merchant wants to make sure you have the card in your possession.

2. Why Is the CV Important for Online and Phone Purchases?

When you shop online or make a purchase over the phone, you’re usually asked to provide your card number, expiration date, and the CVV. This is because the CV is a security check to confirm that you’re the legitimate cardholder. Without the CV, a thief with only your card number and expiration date can’t easily complete a transaction. According to the Federal Trade Commission, requiring the CV helps reduce fraud in “card-not-present” transactions, which are more vulnerable to theft than in-person purchases.

3. How Does the CV Protect You from Fraud?

Most merchants do not store the CV after completing a transaction, so even if a retailer’s database is hacked, your CV is less likely to be compromised. This is a key reason why the CV is so effective: it’s a one-time-use code for each transaction and not part of the card’s magnetic stripe or chip data. If someone steals your card number but doesn’t have the CV, they’ll have a much harder time making unauthorized purchases. This extra step can differentiate between a safe transaction and a costly headache.

4. What Should You Do If Someone Asks for Your CV in Person?

Be cautious if a cashier or anyone else asks for your CV during an in-person transaction. The CV is meant for “card-not-present” transactions only. Legitimate retailers should never ask for your CV when you’re physically swiping or inserting your card. If someone insists, it could be a red flag for potential fraud. Politely decline and consider reporting the incident to your card issuer. Protecting your CV is just as important as safeguarding your PIN or card number.

5. Can You Share Your CV Over the Phone or by Email?

While providing your CV for phone purchases is common, you should never share it via email or text message. Email and text are not secure channels, and your information could easily fall into the wrong hands. If a merchant asks for your CV over email, it’s best to call them directly and provide the information over the phone or use a secure online payment portal. Always double-check that you’re dealing with a reputable business before sharing sensitive card details.

6. What Happens If Your CV Is Stolen?

If you suspect your CV has been compromised, contact your card issuer immediately. Most banks and credit card companies offer zero-liability protection for fraudulent transactions, but you must act quickly. Monitor your account for unauthorized charges and consider requesting a new card. For more tips on what to do if your card information is stolen, visit the Consumer Financial Protection Bureau’s guide.

7. How Can You Keep Your CV Safe?

Keeping your CV safe is all about being mindful of where and how you use your card. Only enter your card details on secure, reputable websites (look for “https” in the URL), and avoid saving your card information on multiple sites. Don’t write your CV down or share it with anyone you don’t trust. If you use a digital wallet or payment app, ensure it’s protected with a strong password or biometric authentication. These simple habits can go a long way in keeping your finances secure.

8. Are There Alternatives to Using the CV?

Some banks and credit card companies now offer virtual card numbers for online shopping. These temporary numbers come with their own CV codes and can be used for a single transaction or for a limited time. Your real card details remain safe if the virtual card number is compromised. Ask your bank if they offer this feature—it’s a great way to add another layer of protection to your online purchases.

The CV: Your Tiny, Powerful Security Partner

The CV on the back of your credit or debit card may seem like a small detail, but it’s a powerful tool in the fight against fraud. By understanding what the CV is, how it works, and how to protect it, you’re taking an important step toward safer spending. Remember, your financial security is in your hands, so treat your CV with the same care as your card number and PIN. The next time you make an online purchase, you’ll know exactly why that little code matters so much.

Have you ever had to deal with credit card fraud or a suspicious request for your CV? Share your story or tips in the comments below!

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10 Signs Your Credit Limit Is Hurting Your Score

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Your credit limit isn’t just a spending boundary—it’s a powerful factor directly impacting your credit score. Many consumers focus solely on making timely payments without realizing how their credit limits affect their financial health. Whether your limits are too low, too high, or improperly managed, they can silently damage your credit score and limit your financial opportunities. Understanding these warning signs can help you take control of your credit health and make strategic adjustments before severe damage occurs.

1. Your Credit Utilization Ratio Exceeds 30%

Your credit utilization ratio—the percentage of available credit you use—significantly impacts your credit score. When this ratio exceeds 30%, credit scoring models flag it as a risk factor. For example, if you have a $10,000 credit limit and maintain a $4,000 balance, your 40% utilization ratio is likely dragging down your score. According to Experian, consumers with excellent credit scores maintain utilization ratios below 10%.

High utilization suggests you’re overly dependent on credit, potentially signaling financial distress to lenders. Even if you pay your balance in full each month, your score could still suffer if the issuer reports your balance before you make your payment.

2. You’re Maxing Out Individual Cards

While your overall utilization ratio matters, maxing out individual cards can be equally damaging. Credit scoring models evaluate both your total utilization and per-card utilization. Having one maxed-out card among several with zero balances is worse for your score than maintaining moderate balances across all cards.

This pattern suggests inconsistent credit management and potential cash flow problems. Regardless of your total available credit across all accounts, aim to keep all individual card utilization below 30%.

3. Your Credit Limits Are Too Low Relative to Your Spending

Low credit limits can make maintaining healthy utilization ratios nearly impossible if they don’t align with your regular spending needs. For instance, if your monthly expenses typically reach $3,000 but your total credit limit is only $5,000, you’ll struggle to keep utilization below 30% even with diligent payment habits.

This mismatch forces you to either exceed recommended utilization ratios or significantly alter your spending patterns, both of which can negatively impact your financial health.

4. Recent Credit Limit Decreases

Credit card issuers periodically review accounts and may decrease credit limits based on changing risk assessments. According to the Consumer Financial Protection Bureau, issuers can reduce your limit for various reasons, including decreased credit scores or changes in spending patterns.

These reductions can suddenly increase your utilization ratio without any change in your spending habits. If you’ve experienced unexpected limit decreases, your credit score may already suffer the consequences.

5. You’ve Been Denied Credit Limit Increases

Repeatedly being denied credit limit increase requests suggests that issuers view you as a higher risk. This assessment is often based on factors that already affect your credit score, such as payment history, income changes, or overall debt levels.

These denials indicate potential underlying credit issues that merit attention. They also prevent you from accessing the higher limits that could help improve your utilization ratio and boost your score.

6. Your Credit Limits Haven’t Grown With Your Income

As your income increases, your credit limits should generally follow suit. When they don’t, your utilization ratio may remain unnecessarily high despite your improved financial position. This misalignment can artificially suppress your credit score.

Regularly updating income information with your credit card issuers and requesting appropriate limit increases can help ensure your credit limits accurately reflect your current financial status.

7. You Have Too Many Cards With High Limits

While high credit limits can help keep utilization low, having excessive available credit across numerous accounts can raise red flags with lenders. This situation creates significant potential for rapid debt accumulation, which lenders view as risky.

Additionally, managing multiple accounts increases the likelihood of missed payments or account mismanagement. Focus on maintaining a reasonable number of accounts with appropriate limits rather than continuously opening new cards.

8. Your Credit Limits Encourage Overspending

Credit limits that significantly exceed your reasonable spending needs can tempt you into accumulating more debt than you can comfortably manage. This pattern often leads to higher balances, increased utilization, and potential payment difficulties, damaging your credit score.

The ideal credit limit provides enough flexibility for necessary expenses and emergencies without enabling unsustainable spending habits.

9. You’re Frequently Approaching Your Credit Limits

Regularly approaching your credit limits, even temporarily, can harm your score if these high balances are reported to credit bureaus. Credit card companies typically report balances once per billing cycle, regardless of whether you pay in full by the due date.

This reporting timing means your utilization ratio could appear consistently high even if you never carry a balance. Consider making mid-cycle payments to keep reported balances lower.

10. You Have a Poor Mix of Credit Types

Relying exclusively on credit cards without other credit types (like installment loans) can limit your credit score potential. While credit limits primarily affect revolving accounts, having a poor credit mix overall can magnify the negative impact of suboptimal credit card limits.

A diverse credit portfolio demonstrates your ability to manage various financial obligations responsibly, potentially offsetting some adverse effects of high credit card utilization.

Finding Your Credit Limit Sweet Spot

The ideal credit limit balances sufficient availability for your legitimate needs while discouraging excessive debt accumulation. Regularly monitoring your credit utilization, requesting strategic limit increases, and maintaining disciplined spending habits can help you leverage your credit limits to improve rather than harm your score.

Remember that credit limits are tools—their impact on your score depends entirely on how you use them. By recognizing these warning signs and taking proactive steps to address them, you can transform your credit limits from potential liabilities into assets that strengthen your overall financial profile.

Have you noticed any of these warning signs affecting your credit score? What strategies have you found most effective for managing your credit limits?

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These Are The Best Credit Cards For 18 Year Olds

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These Are The Best Credit Cards For 18 Year Olds

Having a strong credit history is often essential, but it takes time to build up a solid record and secure a great credit score. For young adults, this can create some challenges. When someone turns 18, they usually just gain access to credit-building options since they typically have no credit. Fortunately, some credit cards can help them on their journey. Here’s a look at the best credit cards for 18-year-olds.

Can 18-Year-Olds Have Credit Cards?

Before diving into the best credit cards for 18-year-olds, it’s important to talk about various rules and restrictions that may limit young adults who want a credit card. Technically, 18-year-olds can have a credit card. However, they need to meet specific criteria.

Anyone under 21 may be required to either have a cosigner or provide proof of independent income. Without that, lenders won’t allow them to open a credit card account. The reason for that is a relatively recent law that was passed by Congress that legally requires lenders to ensure young adults have the means to pay off what they charge. Income shows they can handle the payments, while a cosigner makes someone else equally responsible for the debt, limiting the overall risk.

The Best Credit Cards for 18-Year-Olds

Which credit card is best for an 18-year-old can vary depending on a few factors. However, certain options are potentially better choices than others for those without any credit history, a situation that usually applies to 18-year-olds. As a result, focusing on credit cards that are more open to applicants with little or no credit history is typically the ideal strategy.

Here’s a look at some of the best credit cards for 18-year-olds.

Discover it Student Cash Back

Since it focuses on college students, the Discover it Student Cash Back credit card doesn’t require a credit score or history to qualify. Additionally, it comes with perks you may not see with other cards available to young adults.

Along with no annual fee, users can earn up to 5 percent cash back in the currently listed spending categories (which rotate every quarter). Additionally, they can earn 1 percent cash back on everything else.

In some cases, new users may also qualify for a 0 percent introductory APR for six months. After that, the card has a reasonably competitive rate, particularly for young adults without credit histories.

Petal 2 Cash Back No Fees

For young adults that want to avoid credit card fees, the Petal 2 Cash Back No Fees credit card is a solid option. The issuer advertised no fees of any type, so users won’t have to worry about annual, foreign transaction, or late fees at all. Plus, by making on-time payments, cardholders can start earning unlimited cash back.

Another reason this option is great for 18-year-olds is that it’s an unsecured card that is open to applicants without credit histories. For young adults with a credit score, that can factor into the lender’s decision. However, if no credit score is present, the lender also looks at the activity in a linked bank account to see if the person demonstrates sound financial judgment. As a result, a lack of a substantial credit history may not hold a young applicant back.

Chase Freedom Student

Another student-oriented card, the Chase Freedom Student credit card also comes with no annual fee and 1 percent cash back on every dollar spent. While the rewards rate is lower than some other cards that may work well for 18-year-olds, the lack of credit requirements can make it a solid choice.

Additionally, after five on-time payments during the initial ten months of opening the account, borrowers can qualify for an automatic credit line increase. That allows a young adult to start small and receive a boost in relatively short order, something that may not happen with some of the other cards on the list.

Capital One Platinum Secured

Often, secured credit cards are easier to open than their unsecured brethren. Since 18-year-olds can seem like a significant financial risk, this approach may help young adults secure better interest rates or increase their odds of approval.

One benefit of the Capital One Platinum Secured card is that the initial security deposit can be quite low. As a result, young adults may not have to send in hundreds or thousands of dollars to open an account.

After demonstrating good financial habits and meeting other criteria, it’s also possible to transition the account to an unsecured version. As a result, this is a credit card that can functionally grow with a young adult, allowing them to avoid having to get a new credit card later after their situation changes.

Journey Student Rewards from Capital One

Another option from Capital One is the Journey Student Rewards credit card. Initially, users can earn 1 percent cash back on purchases. However, with on-time payments, the cashback reward rate can increase to 1.25 percent.

Like other student cards, this option focuses on borrowers with little to no credit history. Plus, it has a few other perks, including no foreign transaction fees. If a student may want to study abroad, this could be a boon, as it allows them to earn rewards and avoid a costly fee for using the card overseas.

Do you know of any other credit cards for 18-year-olds that people should consider? Do you think that 18-year-olds should avoid credit cards, or are they a smart way to start building their credit? Did you have a credit card at 18 and want to tell others about your experience? Share your thoughts in the comments below.

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Don’t Keep These 7 Things In Your Wallet

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please don't keep these 7 things in your wallet

When you choose items to go into your wallet, you typically have a few goals in mind. Usually, the first priority is to ensure certain necessary items are accessible, like your driver’s license or debit card. However, some people also carry around additional items, predominately because it seems convenient. The issue is, some things are incredibly risky to keep with you, leaving you open to identity theft, fraud, or other hardships if you misplace your wallet or the items fall out. If you want to make sure you’re as protected as possible, don’t keep these 7 things in your wallet.

1. Social Security or Passport Card

Identity theft is much easier for a fraudster to pull off if they have access to your Social Security number. Since your Social Security card isn’t something you regularly use, carrying it around means you’re taking an unnecessary risk.

Ideally, your Social Security card should be stored in a safe place, such as a fireproof safe in your home or a safe deposit box at a bank. That way, it is accessible on days you do need it – such as if you have to present it to complete an I-9 verification for a new job – but won’t easily fall into the hands of someone else.

Technically, you also shouldn’t carry any documents or notes with your Social Security number on them, especially in your wallet. Your ID card or driver’s license contains a lot of your personal information. If you lose your wallet and it also has your Social Security number on a piece of paper inside, you’re making it particularly easy for them to steal your identity.

The same goes for passport cards. While they are convenient for border crossings, they also contain a ton of personal information. Unless you’re planning on crossing a border or need it for an I-9 verification, leave it securely stored elsewhere.

2. Credit Cards You Don’t Use Regularly

Carrying credit cards that you don’t use frequently creates an extra level of risk. Even if you notice your wallet is missing quickly, it takes time to contact every issuer to let them know your card is missing. That could give a criminal enough time to use your card before you get it canceled.

While you may want to keep your main credit card and debit card with you, reconsider any extras. For example, you may want to lock up your store cards in a fireproof safe, only removing them when you plan to shop at that store. Not only is that safer, but it could also reduce the urge to impulse shop, which could make it easier to keep your budget on track.

3. PINs and Passwords

Some people struggle to remember their debit card PIN and various account passwords. While keeping it on a piece of paper might seem convenient, it also means that someone else gets access to it if you lose your wallet. Thieves will have an easier time using your card, as they can enter the PIN directly, or could the passwords to break into your bank accounts.

Similarly, writing your PIN on the back of the card is a no-go. You never want a copy of your PIN and your card in the same place, as that makes it much easier for someone to use the card without your permission.

If you have trouble remembering, you may want to use a password keeper app. That way, you only need to remember one password, and the rest will be securely encrypted inside the app.

4. Checks

A check – whether blank or filled out – contains a lot of information that a fraudster could use to steal money from the connected account. Along with the accountholder’s name and address, the routing number and account number both appear on paper checks. That could be enough detail for a criminal to initiate a transaction, allowing them to take money out of your account.

If the check is blank, that’s even riskier. If you drop your wallet and it contains an ID card, driver’s license, debit card, or another item with your signature, the person who finds it could use that as a reference. Then, they could write themselves a check, fake your signature, and get the money that way, too.

5. Extra Cash

If you’re a fan of the envelope budgeting system, you may get in the habit of carrying large sums of cash. While that may be necessary if you’re about to handle a major shopping trip, it isn’t wise to walk about with big amounts of money when you’re not about to shop.

Instead of keeping all of the envelopes on you at all times, leave them secured in a fireproof safe. Then, remove only the ones you need when you’re about to shop.

Additionally, while it might be less comfortable, you may want to avoid carrying large bills, like $100 bills. If someone notices that you’re removing large bills from your wallet, that could make you a target. While having to carry a stack of $20s means a thicker wallet, it could be a wise move.

It’s important to remember that, unlike with credit or debit cards, there’s no fraud protection with cash. Often, if you lose your wallet and someone removes the money, recovering it is practically impossible.

6. Extra Gift Cards

Like cash, gift cards are hard to recover if they are stolen. As a result, it’s best not to carry any you aren’t planning on using that day in your wallet. That way, if you misplace your wallet, you don’t have to worry about their value being stolen.

Additionally, if you have the option of registering your gift card online, consider doing it. Usually, this process is required for online purchases, allowing the card to be associated with a physical address for traditional verifications. As an added bonus, it could make it harder for a thief to use your card, suggesting they didn’t manage to get their hands on your driver’s license or ID, too.

Without your zip code, they can’t make it through the verification process. However, if they do have your ID, they can input the right information while checking out. But that doesn’t mean that registering isn’t worth doing, as it could offer you a degree of protection.

7. Spare House, Car, or Valet Keys

While many people worry about what they’ll do if they lose their house or car key, keeping the spares – even the valet key – in your wallet isn’t ideal. If you do happen to misplace your wallet, the person who finds it can do more damage than just take your money. For example, they could use the address on your driver’s license or ID to locate your home, using the key to gain access. They could then keep an eye out for your arrival and take advantage of the spare car keep to steal your vehicle.

If you’re concerned about getting locked out of your home or car, your best bet may be to give the spare to a trusted friend or family member. Then, if you lose your keys, you can contact them for assistance.

Can you think of anything else people shouldn’t keep in their wallets? Share your thoughts in the comments below.

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Family Member Opened an Account in My Name-Now What?

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family member opened an account in my name

When people envision identity theft, they picture some stranger masquerading as them. But that isn’t always what plays out. During one year, about 550,000 victims of identity theft said that a person they knew took their information, not a stranger. While getting your identity stolen is always a difficult situation, when a family member is responsible, it’s even more complex. So if you have the question, if a family member opens an account in my name? Here’s what you need to know.

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