With too many offers and shopping options available, carrying multiple credit cards has become a common agenda these days. People assume that carrying several credit cards does not harm them as long as they are manageable and does not affect the credit score. But it is not always easily achievable to everyone. So, more the number of cards you have more the financial problems you would encounter. You have to bother about several due dates and several payments. More or less, financial problems remain the same even if you are carrying just one credit card. With credit cards, you are more exposed to online theft.
So, more the number of cards, more would be the financial problems. You have to bother about several due dates and several payments. More or less, financial problems remain the same even if you are carrying just one credit card. Moreover, with credit cards, you are more exposed to online theft.
3 Straightforward Reasons to Dump Your Credit Card
Below are more obvious reasons, which compels you to say a big ‘No’ to credit cards. Read through to agree with us.
Crossing Budget:
Often credit cards are a reason for crossing budgets. While budgeting is a great tool to keep spendings under control. Credit cards in your wallet give more access for unnecessary spending, which can rob your financial security. If you have no credit cards, you exactly know how much you have for your spending and you purchase only based on your affordability.
Losing Money:
Practically, credit card interest rates are too expensive. Automatically, financing your purchases become expensive. Firstly, you do not have enough cash on hand to make the purchase. On the top of it, the interest rate on availing the card becomes an obvious burden. Additionally, if you can’t pay off your balance in full, increased interest rates, after a certain period, injuries even more (financially)!
Affecting Credit Card Score:
As the credit card balance go unpaid, credit score begins to diminish. This hurt credit card score would impact your more meaningful purchases like a home. While considering your premiums, even insurance companies check for your credit scores.
Not to mention, poor financial habits could jeopardize your relationships. Money problems are most common causes for family fights. On the whole, credit card accessibility increases the chances of higher spending. And the habit of financing may lead to bankruptcy.
If you do not owe money to anyone, you just do not have to bother about late payments, due dates, balances, etc. You get to enjoy all the peace in the world. So, be wise with your earnings, spending, and savings. For more expert advice on personal finance, approach ArthaYantra – first online robo advisory.
