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Why you should not use a credit card

Why You should not use a credit card

As we know that credit cards have become an important part of our life nowadays. Each and everybody is using credit cards for their personal uses and for business purposes as well. Credit cards are short-term loans in short. You can borrow the money from banks or any financial companies whenever you need in an emergency. You just have to return the money back to the banks or the financial companies within the prescribed time. Different banks and financial companies offer so many types of credit cards. Companies give various benefits that’s why people mostly prefer credit cards.  But like everything, there are some pros and cons of using credit cards. There are some disadvantages of using credit cards as well.  Let us have a look on them one by one. 

Things you need check

  • Although credit cards are easy to use they increase the habit of   They can make you extravagant because you can spend as much as you want to spend without any restriction. But this is only short-term benefits. In long run, it is going to harm you. Sometimes you may buy unnecessary things.
  • Credit cards give you easy credit but at high-interest, You can purchase goods and services but you have to return back this money with high-interest rates to the banks or the issuer of the card.
  • You may face such situation in which you lost your credit card and nay random person can misuse it. Simply you can report to your credit card company and they will cancel your card. 
  • If you miss your debts, in any case, it will affect your credit It will impact your credit history. In future, if you ever want to get any kind of loan then your credit score plays a very important role there. So it is always suggested to keep your credit history good.
  • You have to pay a fixed amount of fees per Although some credit cards are there with no annual fee most of them charge an annual fee.
  • Additional charges are applied by credit cards like VISA and As if you make any of your payment by using these cards you will be charged 0.5 -2% of the total cost. So it is suggested to not use your credit card unnecessarily. Try to use your credit card only in an emergency.
  • All of your payments are going to be recorded so you lose your Wherever you use a credit card your payments will be recorded online.
  • Debt does not let you meet the financial goals. Use of a credit card can make you spent more than you So you may get trouble in saving money.
  • Debt can cause a negative impact on your mental health.