Dangers of credit cards
Credit cards can be very advantageous to the smart consumer who
uses them wisely by giving you credit to buy what you need
without having the needed up-front cash, and letting you make
payments over time. But if you are not mindful of the terms of
credit cards, there can be dangers of credit cards. If you do
not watch your budget and charge without having the ability to
make monthly payments, money problems can result which can
affect you emotionally and physically. If you do not make gains
in paying off your principle balance, the credit card can take a
long time to pay off. You can be paying for a purchase you may
not even use anymore for years.
If you are unable to pay your bills, you may find yourself
filing bankruptcy which can affect your financial future for
years, leaving you unable to obtain future credit, affecting job
prospects, and causing higher car insurance premiums.
To protect yourself, you need to have a budget which will enable
you to make adequate credit card payments. You need to also
closely look at the terms of the credit card so that you are
informed of what the interest rate is, the grace period, and any
penalties for late payments. Also, the dangers of credit cards
can affect you if someone gains access to your credit card
information and makes fraudulent purchases. You need to watch
your accounts carefully to make sure that someone else has not
stolen your credit card information.
If you don't have some sort of income from a job, self
employment, or a business, then it is not very wise to apply for
a credit card. If you do have some form of monthly income and
you do use your credit card, be sure to make the monthly payment
when requested. If you fail to do this, your credit rating will
be major affected. If you do this for a few months you will end
up having some serious credit problem. This can take months of
paying on time to establish a good credit rating again.
So in conclusion, use your credit card wisely and only use one
if you have some form of income to at least meet the minimum
monthly payment.