All of you will certainly agree when I say that credit cards spell convenience. You do not have to fill your wallet with cash. All you need is a handy plastic card and you’re off to a shopping spree.
You will also find credit cards to be very beneficial when you’re making a purchase over your landline or on the Internet. This is far better than issuing back cheques, right? Credit cards may be very convenient, but let me also point out to you its negative side.
- Getting attracted by reward points
Credit card companies give reward points every time card holders use their credit cards when paying for their items bought. This is one way credit card companies encourage card holders to swipe more often for them they gain more profit.
- You gain zero interest
It is true that you gain interests from your bank accounts and you also pay interests on your credit cards. If you try to look at the scenario, you will see that you gain no interest at all because it will just go straight to the interests on your credit cards.
- Monthly charges on credit cards
Every time you use your credit card, it also means that you’re agreeing to pay interests. So if you are using a couple of credit cards, this simply means that you have to pay each of your credit cards’ interests.
- One may tend to overspend
Forgetting to monitor the expenses using credit cards is one of the major problems that most card holders encounter. When you’re swiping the cards, you don’t bring out any cash and so you are not aware of how much you’ve already spent until you receive your bills.
Many little things are equivalent to one big spending. Card holders don’t often realize that their bills are growing and that they tend to forget the number of times they’re using it making small purchases. This is how bills become tremendous and many of us still can’t get the logic.
Credit cards are not bad if used the proper way. If you know your purpose for availing credit cards and you know how to control your spending, nothing will go wrong. They can be very advantageous, especially when you need urgent money. You can also use this to show creditors that you are worthy of a loan.
Keep in mind that when you have credit cards, you should have the initiative to know the ways to handle them. Also, be a responsible card holder.