Disadvantages of Credit Card
The following are the disadvantages of credit card-
High cost
One of the biggest challenges with buying a credit card is keeping track of costs. You may find that you are spending more on shopping in a way that can be repaid at a later date - but forgetting that extra interest must be paid.
Annual Fee and Other
Most credit cards have an annual fee, and some contributions apply in different ways, such as late payment fees, balance transfer fees, overdraft fees, and so on.
Credit Score Complications
Failing to pay a monthly installment on a credit card purchase will negatively impact your credit score. Also, if all creditors pay off a credit card without paying, it will storm the credit score.
High Value Transaction Fee
There is no significant fee as a purchase on a debit card, it is not the same as a credit card. In this case, a very high fee applies. So it may be seen that instead of a debit card, a higher amount of service tax will be paid on the purchase of credit card.
Debt trap
Using a credit card is always a way to get a loan. If you're buying now, you'll have to pay later. There is a risk. If you do not repay the loan on time, the debt will continue to increase.
Hidden costs
Paying interest rates is not the only cost of using a credit card. You may have to pay a fine if you do not pay the monthly price on time. Even if the credit limit exceeds the usage limit, you have to pay a certain amount. That is, the use of credit cards can be very dangerous if not timely. It may be necessary to pay a fixed rate to withdraw cash using a credit card.
Identify the correct card
It is important to choose the right card. Which is convenient for you. If you use a wrong card day after day, the debt burden will only increase. However, to understand this, the entire terms must be read carefully. You have to choose which one is compatible with your income.
In fact, like all things, there are both advantages and disadvantages of a credit card. Now it depends entirely up to you
The following are the disadvantages of credit card-
One of the biggest challenges with buying a credit card is keeping track of costs. You may find that you are spending more on shopping in a way that can be repaid at a later date - but forgetting that extra interest must be paid.
Annual Fee and Other
Most credit cards have an annual fee, and some contributions apply in different ways, such as late payment fees, balance transfer fees, overdraft fees, and so on.
Credit Score Complications
Failing to pay a monthly installment on a credit card purchase will negatively impact your credit score. Also, if all creditors pay off a credit card without paying, it will storm the credit score.
High Value Transaction Fee
There is no significant fee as a purchase on a debit card, it is not the same as a credit card. In this case, a very high fee applies. So it may be seen that instead of a debit card, a higher amount of service tax will be paid on the purchase of credit card.
Debt trap
Using a credit card is always a way to get a loan. If you're buying now, you'll have to pay later. There is a risk. If you do not repay the loan on time, the debt will continue to increase.
Hidden costs
Paying interest rates is not the only cost of using a credit card. You may have to pay a fine if you do not pay the monthly price on time. Even if the credit limit exceeds the usage limit, you have to pay a certain amount. That is, the use of credit cards can be very dangerous if not timely. It may be necessary to pay a fixed rate to withdraw cash using a credit card.
Identify the correct card
It is important to choose the right card. Which is convenient for you. If you use a wrong card day after day, the debt burden will only increase. However, to understand this, the entire terms must be read carefully. You have to choose which one is compatible with your income.
In fact, like all things, there are both advantages and disadvantages of a credit card. Now it depends entirely up to you