Sure, here’s a rewritten version of the article:
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The photo caption reads “Olga Rolenko | Moment | Getty Images,” which, honestly, I have no idea why it’s relevant, but it seems important to someone. Now, when it comes to credit cards, I’m sure you think you know how they work. Spend a little here, pay a little there. Easy peasy, right? But then there’s this thing called “credit cycling.” Heard of it? Probably not. It’s kinda like your little secret shortcut – until it’s not.
Let me explain. So, credit cards have these spending limits as you know, which is basically like your mom saying, “Don’t spend all your allowance in one go.” But here’s the kicker: if you keep hitting that limit and paying it off ASAP, you can spend more than you thought. It’s kinda like cheating, but not really. Sometimes it’s fine, like going a tiny bit over the speed limit – not saying you should do it, but we kinda all do. This analogy was actually from Ted Rossman at CreditCards.com. Not sure why that stuck with me.
Now, if you do this cycling thing too much, you might get into trouble. Imagine your card getting canceled and all those sweet reward points just vanish. Poof! Sounds like a bad breakup no one wants. Bruce McClary from the National Foundation for Credit Counseling suggests finding better things to do with your financial life. Easier said than done, right?
I heard the average American has a credit card limit of around $34,000. That sounds like a lot of money, but it’s not when you’ve got things to buy, amiright? I get why you’d want to cycle credit – maybe a vacation you can’t wait to take or a wedding that needs those extra bucks. But guess what, Mr. Rossman says card issuers don’t love it. Makes sense… who wants a constant borrower?
Issuers might think you’re doing something shady like laundering money. Yikes. Seems like you can’t win. And let’s not forget the dreaded maxing out. Nothing screams “I need help” more than crossing the threshold and suddenly getting hit with over-limit fees. The horror.
Here’s a wild thought: maybe instead of playing this potentially risky game, you could just ask your card issuer to bump up your limit? Or pop open a new card? Spread your payments out, mix it up. Rossman also suggests—brace yourself—not waiting for the bill to show up. Pay early, like in the middle of the month. Sounds boring, but hey, might just help your credit score.
Anyway, navigating credit cards is like tiptoeing through a minefield, but if you play it right, you might actually come out okay. Or not. But that’s life, isn’t it?
