Which credit card you have? What is its credit limit? What type of credit card it is? These types of questions are always on people mind today. Despite many advantages of credit cards here are its disadvantages, to make you aware if you’re going to get a new credit for yourself.
The very first is that not everyone meets the eligibility criterion to hold a credit card. However, companies give these cards with minimum terms and conditions to enhance their sales and as part of marketing strategies.
Credit card provides you with huge credit limits. The consumer keeps on drawing money from his card and most often and when he realizes his mistake it’s too late. By this he comes in the debt of the money he withdrew, and he has to pay massive interest that is charged by these companies and banks.
There are many lucrative offers provided by credit card companies every month in the form of incentives. It’s done to boost the sale of their product. Incentives like travel programs, gas purchases, etc. are a very common these days. You should not get carried away with such offers. As it might be promising for some cheerful moments, but once you become habitual it can land you in trouble.
Using a credit card is a kind of addiction. And this addictiveness is a source of trouble. People, who keep on drawing from the bank’s or company’s credit suffers.
Debit cards are different from credit cards, but the difference is minimal. Sometimes a debit card can also be used as credit cards and banks charge a fee for it so more or less a situation remains to be the same.
So when ever you go for credit card consult some advisor, Know the interest rates and other important things. Never get carried away by brand names, do some research and plan what to do next.
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