Blessings in Disguise – Part I | brokeGIRLrich
I’m not always the most optimistic person and there are definitely times I get a little bogged down in how much things suck, but recently it occurred to me that sometimes the money irritations in my life are actually blessings in disguise.
The first time I applied for a rewards credit card, I was rejected.
This was super irritating to me because I was about to move out of the county for grad school and knew that the majority of my spending was about to go onto my credit card, including $20,000 in tuition. I had always paid at least the minimum on the card I had at the time, so I couldn’t figure out why I just kept getting rejected to a rewards card.
This obnoxious situation actually created two blessings.
I actually checked my credit card report and found that things were not as they should be. My mom had added me as additional card holder on one of her accounts when I started driving for emergencies and apparently never took me off, despite the fact that I hadn’t had one of her cards for years. We also thought that being on her account wouldn’t affect my credit score. Wrong.
We’ve already covered that my mom and I approach money very differently – so my credit report was reflecting a very high balance credit card that maxed out and occasionally not paid on time.
While we managed to get all of that removed from my credit report, it took a few months and I was already in England by the time it was sorted. I didn’t wind up getting a rewards card until after I got back.
The other reason this wound up being a blessing in disguise was that I wound up paying a lot less interest on $6,000 without rewards card interest.
I actually finished up my time in England carrying that sizable balance on my card, but fortunately, my boring old credit card that I signed up for on the first day of college had a very low interest rate. I was able to pay all of that off in 3 months.
Rewards cards, while awesome, should really only be used by people who can pay off their balance in full at the end of each month. Those interest rates are often very high!
It’s always good to be able to see the positive in a situation. And you’re absolutely right that rewards card are only “rewarding” if you pay the balance in full each month. I’m glad it all worked out for you in the end.
Gary @ Super Saving Tips recently posted…Is Debt Really a 4-Letter Word?
It really did! Now I’m slowly on my way to becoming a travel hacker, but I definitely understand more about my credit score!
Mel @ brokeGIRLrich recently posted…Financially Savvy Saturdays #130
I love rewards cards but it’s so true that you need to use them responsibly- the credit cards with rewards also have the highest interest rates. Using credit cards wisely is something I think they should teach in school. Btw- love your blog! Keep rocking it girl! 🙂
Rachel Jimenez recently posted…How do I get my first clients when I’m just starting out?
Thanks!! And I agree, financial education in school is severely lacking!
Mel @ brokeGIRLrich recently posted…Financially Savvy Saturdays #130
This lesson is so true! This isn’t really a lesson, but when we first moved in together, we got a place that made me nervous because I thought it was too big for our needs. My husband really wanted it, and assured me he’d make sure the rent was always covered. I didn’t like it because math. But years later, we’re still here with kids, and although now it’s actually too small, our rent is much lower than what we could find on the market for a similar place had we waited to upgrade until after the kiddos arrived. Long term, we actually saved a ton of money. It wasn’t originally thrifty, and may have even been the wrong decision, but it turned out to be a blessing.
Femme Frugality recently posted…Gender Discrimination: A Story of Career Flexibility
What a great lesson about the need to check your credit report. I know I had not realized that my husband had put me on one of his card accounts until I checked mine. (I’ve never actually had a card for it.) Fortunately, it isn’t a card where he carries a balance, but I was still concerned that someone had hacked my credit until he ‘fessed up.
Emily @ JohnJaneDoe recently posted…“Watching Toy Videos Just Makes Me Want Stuff.”
Such a good point regarding the credit report. I caught an error that could have damaged my score terribly. Luckily, I have a friend who works in banking and she straightened it out for me over the phone. Many hours later… lesson learned, indeed!
It’s amazing how much someone else’s credit report can affect your own if they are linked in some way. I love the idea of a rewards card and keep meaning to apply for one. They do all seem to have high interest rates as you say. I still haven’t plucked up the courage to get any type of credit card though after my dice with debt!
Hayley @ Disease Called Debt recently posted…The Huge Purchase That I’ll Never Regret
That’s understandable. They do have some awesome perks though once you’re sure you can use it responsibly. And I still have the trustworthy low interest card as well, heaven forbid life really throws me for a loop and I do reach a point where I can’t guarantee I can pay off a balance.