Risk In Having Credit Card

If you are thinking to get a credit card then remember it is not free. For new users and many times for old users too, it becomes a headache. It is equally dangerous for everyone if you don’t use it wisely. Don’t fall into a credit cards trap and understand the dangers of it.


It was found in a study that customer spent more when they pay with credit cards than paying cash. They spent almost double when they use a credit card. People find it easy to carry a credit card rather than cash. They don’t feel like that cash is leaving from their wallet.

You can easily avoid this overspending by setting your limit that doesn’t matter if it is less than your credit limit. Based on your monthly plan and how much you can pay every month. Try to spend only the amount which you can pay next month and make it zero balance.

Interest Rates

Every time you should avoid paying interest rates and pay the full amount each month you have spent. You need to pay on interest on the amount which you didn’t clear that month.

Avoid spending more than you can pay in the coming month. Pay the balance in full to avoid interest rates.

Into Debt

Whenever you borrow money from anyone you create debt. Day by day you get into the high amount of dept. And by doing all these you are digging a hole for you. Debt leads to many problems. When you are in debt then reaching your financial goals are difficult. Your saving becomes less as your spending money on your debts. If you want to take a break from your job for some time or anything you need to do need money but you are giving a big part of your income in debt.

Recognize the need of your credit card debt. Stop using your credit card when you won’t be able to pay it next month.

Credit score

If you are not using your credit card wisely and not making payment on time this may take down your credit score. It will be the major impact on having a low credit score. If you miss your payment more than 30 days then it is going to hit your credit score.

The best way to build your credit score is to pay your credit card bills on time and minimize the use of credit card.

Confusing Terms

Credit cards have many terms and conditions. Credit card act of 2009 has made it a lot clearer than before. Be clear about the terms and conditions, a misunderstanding leads to higher interest rates, increased fees etc.

Harder To Track

It is way harder to track your spending when you have many other cards. Tracking your spending makes you a better financial planner. Doing unusual spending is the main reason credit card make it so easy to overspend.

Credit Card Fraud

To some extent, the credit card is at risk of being a victim of credit card fraud. It can be stolen or you may lose sometime in these case you have to report quickly.

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