Things to consider before getting your credit card

Shawdesh desk:

In today’s world, using credit cards is super easy, especially as we approach the joyous occasion of Eid and the bustling shopping season it brings. But, amidst the excitement of purchasing new attire, gifts, and festive essentials, there are some critical aspects to consider about credit card use that might not be as appealing.

Let’s take a closer look at what could go wrong when you swipe that plastic.

Spending Too Much

Credit cards make it tempting to buy things you don’t really need because you’re not handing over real cash. It’s like magic money! But, if you’re not careful, you might end up spending more than you can afford.

Getting into Debt

When you use a credit card, you’re borrowing money from the bank. But if you don’t pay it back right away, you have to pay an extra called, ‘interest.’ It’s like a snowball rolling downhill, getting bigger and harder to stop in the long run.

Paying Extra Fees

Credit cards often come with sneaky fees that can accumulate fast. There are charges for things like not paying on time or taking out cash. Moreover, if you don’t pay your bill in full every month, you will get slapped with additional interest fees.

Hurting Your Credit Score

Your credit score is like your financial report card, and it’s affected by how you use your credit card. If you miss payments or max out your card, your score goes down. That can make it harder to get loans or make EMI payments in the future.

Risk of Fraud

Thanks to all the shopping we do online these days, credit card fraud has become a big concern. Crooks can steal your card info and go on a shopping spree without you even knowing. It’s a hassle to deal with, and it can take a while to get things sorted out.

Overlooking Introductory Offers

While those signup bonuses and rewards points can seem enticing, some credit card users might overlook the fine print. Introductory offers often come with strings attached, like high-interest rates after the initial period ends or spending requirements to earn the “so called rewards.”

Temptation of Minimum Payments

Credit card companies often offer the option to make minimum payments, allowing users to defer paying off their balance in full. While this might provide short-term relief, it ultimately prolongs the debt repayment process and increases the amount of interest paid over time.

Impact on Mental Health

Constant worries about credit card bills and debts can take a toll on your mental well-being. Stress and anxiety related to financial issues can lead to sleepless nights and strained relationships, affecting your overall quality of life.

So, while credit cards can be handy, it’s essential to use them wisely. Keep an eye on your spending, pay your bills on time, and watch out for any suspicious activity on your account. With a little caution, you can enjoy the perks of credit cards without falling into financial trouble.