4 Major Reasons Why People Shun Credit Cards
4 Major Reasons Why People Shun Credit Cards: The early 90’s brought with them an era dominated by plastic money, also known as credit cards. With the computer usage and internet access slowly and steadily gaining pace, credit cards were not left behind. However, recently people have become more inclined to use cash instead of a credit card.
Let’s take a look at some of the reasons for not keeping a credit card.
High interest Rates
Even if you don’t use your credit card on every occasion, every time that you do, you will end up paying a high interest rate when it’s time to make repayments to the credit card company. The interest rates soar even higher if you are unable to pay the minimal amount of due payment every month.
Your Budget Goes Down the Drain
Shopping makes you happy and there’s no doubt about it. When you are in a mall and you have your credit card in your bag, chances are that you will end up shopping for things that weren’t in your list initially.
Since you aren’t using cash, it’s easy to lose track of money that you are spending and this also means that you won’t be able to stick to a budget. Using a credit card can actually break your budget!
Credit Damage
There comes a point in one’s life when taking a loan from a bank becomes necessary. It may be to set up a business or to get a mortgage for your home. If you have been using a credit card for some time now and have missed a few payments, then it will show up on your credit record and may even negatively impact your chances of getting a loan.
You Can’t Prevent Credit Frauds
No matter how careful you are with your credit card usage, you can’t prevent credit card fraud. One of the most common reasons for not keeping a credit card is credit card fraud. Though you get back the money lost through illegal transactions, it’s still a very long and time-consuming process that can literally drain you out!
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