Credit cards very much beneficial in today’s generation. They are helpful in providing us with cash in our difficult times. In this article, we will discuss the adverse effects of credit cards. Yes, it is a truth that credit cards are very much beneficial for us, but it has many drawbacks also if it is not using in the right way.
Cards are made to provide us financial help in our difficult times. Using it in the emergency is a different matter but using it unnecessarily can be proven as a big issue.
There are many drawbacks of credit cards, and some of them are discussed below:
- High interest
Having credit card is safer side to us. When you are using it, then remember that you have to pay it further. When you carry the balance from months, then you have to pay a large amount of interest to the bank. The interest rates are very much high. It may be that you have to pay more than your initial transaction. Only use it in your emergency otherwise it will charge you much.
- Damage of credit
When you use the credit cards, then the transaction is recorded. And when you repay it to your bank, then it also noted in the credit file. After missing the credit cards, repayments can make the chances to take your loan down to the track.
- Credit cards frauds
The fraud schemes usually target the credit cards only. There are a number of fraud schemes which targeted the credit cards and creates problem to the users. When you compensate for the illegal transaction, then you have to deal with many problem and stress too.
- Fees and rates
Credit cards are made to use in emergency times, but people are not getting it. Remember that when you use your credit card, then it will charge fees also in advance while using it. You have to pay some extra amount to use it. The interest rates are also very much high for using credit cards around 19%-22%.
- Annual fees
For using a credit card, you have to pay fees annually. There is an amount which you have to pay for using the credit card facility. If you want no charges, then you have to consider a no annual fee credit card.
To conclude, so these are some drawbacks of credit cards. Hope that you get to know about these issues and make the best use of it.