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Home » The 4 Worst Things That Can Happen If You Don’t Use Your Credit Card the Right Way

The 4 Worst Things That Can Happen If You Don’t Use Your Credit Card the Right Way

Credit card

A credit card is a necessity in today’s world. In case you have one, you have the freedom to purchase anything that appeals to your mind at any time of the day. You don’t even have to bother about where to put the cash because you don’t really require any unless it is for making an important payment.

But, as with everything in life, credit cards come with their own advantages and disadvantages. At a time when people prefer to use debit and credit cards over cash, it is important to be aware of the advantages and disadvantages of a credit card. A credit card can give you many benefits like making payments easier, increasing your spending limit, and offering benefits like reward schemes. However, if not used neatly, they can also take a huge part of your income as interest payments and make you spend beyond your means.

So without any further delay, let’s discuss the topic

Top 5 disadvantages of Credit Cards

Here are some of the 5 disadvantages of Credit Cards that could cause some serious damage to your financial profile if not used right.


If you are not careful, credit cards can lead you to more debt than you can handle. This is because when you have access to these cards, you will tend to overspend as you are able to purchase something without actually paying for it from your own pocket.

If you have limited money but want to make some purchases, then a credit card may seem like the perfect solution. However, if you are not careful, that purchase could eventually lead to big debts that are hard to repay.

Fraud Threat

It is always a bad idea to use your card if you are not sure to whom you’re paying. It can cost you a lot more than the value of what you are paying. There are cases to be kept in mind when it comes to fraudulent activities, and that means, credit card holders need to take care that they don’t allow their cards to be misused by people.

Hamper your Credit

Your credit score can go down as well as up. When you use your card, you will have a credit limit. If you go over this amount or fail to make the minimum payment, it may negatively impact your Credit Score. If you miss a payment on your card or allow debt to stack up this can damage your credit rating. This can make it harder to get credit in the future.

Extra Charges to Bear

Credit card companies charge you for the privilege of using their cards, and these charges can add up to almost 3% of extra pay. A good comparison of credit cards will show you the interest rate, credit limit, annual fee, balance transfer fee, and more, so you can easily compare offers and make an informed decision.

The interest rate isn’t the only number you need to look out for – there may be extra charges too. Your provider could charge fees if you miss a payment or go over your credit limit, which is bad news if you’re already in debt.

If you are looking for a lifetime free credit card then check this article.

Collection of Data

You all might have heard about the ongoing trend of data collection by major online service providers. Facebook, Google, and even porn websites collect and sell your personal data to interested third-party companies. And though this is a well-known fact, not many users are aware of how vulnerable they are when they use credit cards on websites.

You may not realize it but you are leaving behind a lot of personal data that is accessible both online and offline through your payment card transactions.

Taking Everything into the Account

It is so important to use credit cards the right way. Otherwise, you may end up paying way more than you intended to in the long run. The best way to keep your credit card bills low is to charge only those items that you know you can pay off at the end of the month. You must also keep an eye on your spending and avoid unnecessary purchases until bill paying becomes a habit that’s not difficult for you.


You should check your credit limit every now and then and make sure you’re not using more than 40% of your available credit.

A lot of credit card holders mistakenly believe they always have to pay the minimum amount on their bill, when in fact that’s just the bare minimum they need to pay to keep their card open.

As you know, your credit score is an important number that lenders use to help them decide whether or not to give you a loan. If you pay your credit card bills on time, this will have a positive effect on your credit score. However, if you don’t pay your bills by their due date, this will have a negative effect on your score.

Credit cards often come with insurance for purchases that might be lost, damaged, or stolen.

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