For Minnesota consumers interested in buying Bitcoin, here are a few of the reasons why they shouldn’t make their cryptocurrency purchases with credit cards.

Some credit card companies do not permit consumers in Minnesota and other states to charge Bitcoin (the popular cryptocurrency) purchases. Then, a few other issuers allow the transactions, but restrict the amount of Bitcoin purchased per day. As it turns out, these cryptocurrency rules may benefit credit card holders. Seeing how individuals have cashed in big with Bitcoin, many Minnesota consumers are eager to get in on the action. However, because Bitcoin is now expensive, they’ve resorted to charging Bitcoin purchases – if they can. Yet, according to investment and credit experts, this is a risky move. After all, what if the price of Bitcoin falls for good? Consumers in Minnesota who purchased it with credit cards may end up with mountains of debt and ruined credit scores.

How Minnesota Consumers May Run into Trouble by Purchasing Bitcoin with Credit Cards

Currently, the price of Bitcoin is down, making some Minnesota consumers believe that the Bitcoin craze is over. On the other hand, other residents of the North Star State think that now is the time to buy Bitcoin. These more optimistic Minnesotans feel that this drop is temporary, and that investing now in the cryptocurrency will yield a big payoff down the road.

This has prompted credit card users in Minnesota to charge their Bitcoin purchases – sometimes thousands of dollars. For many of these consumers, these transactions are problematic right from the start because they max out their credit cards with Bitcoin investments. This typically causes immediate credit score drops because maxing out credit cards inflates utilization ratios. Ideally, no Minnesota consumer should use more than 30% of their available credit at a time. Otherwise, they normally lose credit score points. So, clearly, maxing out credit card spending limits is never an advisable action for those who want to build or maintain good credit scores.

Also, a recent survey from The Wall Street Journal reveals that 22% of consumers in Minnesota and throughout the U.S. who charge Bitcoin purchases don’t pay off their balances. Instead, they plan to pay their debts when they make their Bitcoin fortunes. Yet, if the price of Bitcoin doesn’t go back up, or, worse, if it plummets, these consumers will heavy credit card debt and nothing to show for it. Then, if they stop making payments and default on the debts, they could ruin their credit scores for years to come.

A Better Way for Minnesota Consumers to Invest Money that Doesn’t Involve Bitcoin

The truth is that most Minnesota consumers should use extra cash to build an emergency fund. By doing so, they invest in their financial security and credit health. Why? Because a lot of consumers in Minnesota initially go into debt because of an unexpected expense. They don’t have money set aside to cover such emergencies, so they are forced to charge the bill to a credit card. Then, the balance rolls over from month to month, gathers interest charges, and becomes debt.

Yet, if Minnesota consumers set aside a little of their income every month to put in a savings account, this money gathers interest and grows. Hopefully, they won’t need it to cover a major car repair or medical bill, but if they do, it’s there, and they don’t have to rely on credit cards. Or, if the bill is extra-large, they can at least cover part of it and charge less to their credit cards. This is how investing in an emergency fund can protect finances and save credit scores.

Another Way that Minnesota Consumers Can Protect their Credit Scores

Consumers in Minnesota working to build, improve, or maintain good credit scores should check their credit reports at least once every 12 months. Many consumers don’t know this, but the credit score you have, isn’t necessarily the credit score you earned. This is because creditors and the credit bureaus often make mistakes with consumer information. These mistakes then show up as errors on credit reports that can bring credit scores down.

Luckily, the Fair Credit Reporting Act (FCRA) entitles all consumers in Minnesota to accurate credit reports. Yet, you have to find inaccuracies before you can have them removed. So, go to, and request your free annual copies of your credit reports from TransUnion, Equifax, and Experian.

Then, while reviewing your credit reports, if you spot credit scores damaging errors, contact Credit Repair Lawyers of America in Minnesota. Our in-house credit pros will then handle the dispute process for you, saving you the frustration of handling the process on your own. Also, by trusting your credit issues to our firm, you’ll gain access to an experienced credit attorney who will do whatever it takes to get you clean credit reports – for free.

The Free and Legal way to Get Better Credit in Minnesota

Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? The law allows us to collect our fees and costs from the defendants in any successful action.  This is why our clients pay nothing for the work we do.

Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (612) 235-4458 or sending him a message through our contact page.

For more information about Free Credit Repair, please visit