Top Ten Reasons Not to Have a Credit Card – Kredittkort
Why Should I Not Get a Credit Card?
There are many reasons to have a credit card, they are easy to get, easy to use, and easy to buy things and pay for them later. Lenders and banks make sure that credit cards are that easy for you to use, they want to make money from them. That is one reason that you might want to avoid getting a credit card.
There are more reasons not to have a credit card, but the biggest one is the cost of having one. If you think that you need a credit card, then you need to see this site: http://www.kredittkortinfo.no/kredittkort-på-dagen/. They have information about how to get a credit card in just one day. They also talk about how convenient is to get a card in one day and how it can be all digital. There are some good reasons to have a credit card. There are also reasons to not have a credit card and below are some of those reasons.
The high cost of having a credit card is one of the biggest reasons not to have one. Credit cards have high interest that can be as high as nearly thirty per cent. That means for every dollar that you spend on something that you buy on a whim you will have to pay an extra thirty cents on that item. That can add up very quickly, especially if you do not have the money to buy the item outright with cash.
You also must worry about all the other costs involved in having a credit card, including late fees, over-limit fees, and other fees associated with the card. These fees also add up really fast and make sure that you pay extra every month.
Then there is the fraud associated with having a credit card, and nearly everyone with a credit card has experienced fraud of some kind associated with their card. It could be something simple, like someone stealing your card and using it for something small. It could be something as big as identity theft and they can end up causing you major problems in the long run. Fraud can happen in so many ways and it is hard to prove that you are a victim of fraud when someone has stolen your identity.
Some people think that getting a credit card will help their credit rating, but that is not always the case. If you make your payments on time every month and pay more than the minimum amount, then your credit rating may go up. If you do not do that, and if something happens to your income, then your credit rating can drastically fall. You must be able to afford the credit card for it to do any good for your credit rating.
You need to have a high degree of discipline to be able to use a credit card responsibly. Sometimes that is not possible, especially when you see something that you really want and do not have the cash for it right then. You want it, so you take out your credit card and swipe it to buy what you want at that moment. This can lead to disastrous complications later in the month when it comes time to pay the bill. If you do not make a big enough payment when the time comes, it can lead to bad credit scores later on.
You get to hear a lot of false promises when it comes to credit card companies who will promise you anything as long as you just take their card. Bonus points, frequent flyer miles, and cash back, all are great promises that the companies make. When you add in all the extra fees that you must pay at the end of the month, all those perks just do not add up.
If you happen to have more than one credit card, card management can be very difficult. Even with three cards, you must have three different statements, maybe three different due dates, and three extra payments you must make each month. Combine this with other loans and responsibilities, and you might have trouble maintaining the high standards on each card. This can cause you to forget a card or underpay on another and soon your credit score will be spiralling downhill. You can learn some ways to avoid the fees associated with credit cards and save some money if you do a little research. There are many legal ways to avoid those fees, and you can find them easily.
Credit cards are too easy to use, making them way too tempting not to use. As was stated above, if you see something that you think that you must have, it is too easy to just grab your credit card and swipe. This can especially cause problems with impulsive behaviour and can cause them to rack up a lot of charges quickly and possibly without the ways to pay the card off later. It might take longer, but it actually is easier to save up the money and then buy the item. If you have impulsive behaviour, this will also give you time to think about the purchase to see if it really is what you want.
Credit cards can cause lots of stress for you and your family, especially if your significant other does not like what you are using the card for. They can also cause you to stress out over how you will pay the bills each month. This can lead to depression, anxiety, and other mental illnesses that could be avoided if you just did not get the card in the first place.
If you just pay the minimum payment each month, you will not be making any headway in paying down your credit card bill. The minimum payment can be misleading to most people who think if they make this payment, they will eventually pay the credit card off. This is misleading because you must make more than the minimum payment to get the card paid off.
Some people forget or do not even know, about foreign transaction fees that must be paid if you use your card out of the country. A lot of credit card companies can charge up to an extra three per cent for using the card out of the country. These fees can add up quickly before you even realize that you are adding them up.
For other reasons that credit cards are not a good idea for most people, you can do a little research and find the ways. You can find some reasons to avoid credit cards on this site. This site will give you many reasons to use alternatives to credit cards.
Alternatives to Credit Cards
There are alternatives to using credit cards that can save you some money instead of costing you money. Some of these alternatives are listed below.
You can use a debit card as easily as a credit card but not rack up any extra fees because you are using your own money. Most banks will not allow you to go over the amount of money that you have in the bank, so most often you will not overspend. This can save you hundreds of dollars in fees every year.
Save your money and buy the item that you want over time to save on any fees. If you can put money into a savings account each month then you can have money when an emergency arises. This will save you from having to use a credit card or getting a loan that can cost you more, as well.
You can also use a secured credit card, one that you must put the money on up front and use only as you have it. This will help you to learn some discipline when it comes to credit because you can only the amount that you put on it. Using these cards can also help you to build up a good credit score instead of leading to a bad score.
If you need money quickly and have not saved the money, you can take out an instalment loan. These loans are better for you because you will know about all the fees before signing the paperwork. The interest rates are usually a lot lower than that of a credit card, as well, which will also save you money in the long run.
You can also use an online payment platform, such as PayPal or Google Checkout. These platforms will help you track the money that you spend, as well as be a way to help family and friends by loaning them money. This also allows you a way to purchase items online and keep track of those payments that you make.
These are all ways that you can save money and not use credit cards. Credit cards can end up causing you to spend money that you were not wanting to spend at the time. They can ruin your credit score by having hidden fees and costing you more than you can afford each month. Credit cards can be a good thing in some ways but can be a dangerous way to spend money.