Why you don't need a credit card?

Did you know that you don't actually need a credit card?

We know often we are running out of cash, and we need to buy something urgently, at that time, credit cards are of great help. Even during the time of crisis or financial crunch, credit cards are said to be a saviour. When during the month-end, you are left with no money in your pockets or bank account, at that time also, it’s the credit card that you use to pay your food bills or your travel bills. Even most of the working-class people prefer to keep a credit card with them, to support their big needs and requirements. It can be anything, like buying a smartphone, laptop, or other such gadgets or utility items.

Some of us just like to keep credit cards to maintain our living standards and our profile in front of others. But think again, are these reasons enough to support your credit card usage? Do you think that you need a credit card because of these things? Is credit card helping you or are increasing your burden?

We know there are many advantages when it comes to using credit cards. They also let us earn some reward points and get us some good discount deals. But we feel that these things are not enough to support our credit card use. Here, we are going to tell you some of the reasons why you don’t need a credit card and why you should not use a credit card. Let’s know these reasons.

Going in debt

We all feel that credit cards help us in paying the debt by providing us the interest-free period. We know that we get time to repay our credit card bills. But we are forgetting that credit card is increasing our habit of borrowing money and putting ourselves into debt, which is not at all good for us. We need to see that instead of taking us out of debt, credit cards are pushing us deeper into the debt. After a certain point in time, it will become difficult for us to come out of the debt as it will keep increasing.

All our money or income which we will earn every month will go in paying the debt only. This is because, when we have credit cards in our pockets, we feel that we have enough money, and we keep spending it without thinking that we will have to repay it very soon. During the time of paying the bill, we face a problem if we do not have enough amount to pay the bill. So, this is putting us in debt.

Emotional Stress and Worry

What you feel that credit card buys you happiness? No, it is buying you emotional stress and worry. We know that buying materialistic things definitely makes us happy and it somewhere also helps us to fulfill our desires, be it of buying a costly gadget or having dinner at a 5-star hotel. But you should also remember that when you are buying a smartphone on EMI using your credit card or you are renting a car using your credit card, after a stipulated time you will have to pay it back.

Also, there will be certain interest when you get these things on EMI. Even if you have not purchased anything on EMI and you have no interest to pay, still that date to pay back the amount keeps reminding you that you are in debt. Because, if credit card would not have been there, the need to buy any random thing would not have generated. In case, if there would have been a need, you would have started saving for it instead of borrowing. So, think what stress the credit card purchases are giving you.

Unknown terms and conditions

When we get a credit card, we are so excited that most of us do not read the terms and conditions mentioned on the credit card. We only know a few things like we will get late payment charged if not paid timely, or the interest period will start if will not pay back on time, etc. But there are many terms and conditions which we are not at all aware of, like how high will be the late fees charged, the interest rate can increase any time, the credit limit can be reduced anytime if we are not paying bills timely, etc. There is n number of terms and conditions, which we do not bother to read. These hidden terms and conditions make us worry later on when we get to know about them.

Credit Score

If you are using a credit card or you have taken a loan before, you must be aware of the credit score. Many people believe that using a credit card will help in increasing the credit score. This will help them in taking the loan easily in the future. Or this will also help in increasing their credit limit. But they forget that vice versa can also happen, as it happens with many people. If you are paying your credit card bills late or you are failed to pay it timely, even for once also, your credit score will get affected by it. This is also one of the reasons why you should not use a credit card.

Unnecessary Purchase Habits

You may consider it funny or a joke, but this is true, and you can even check it with the people who are using a credit card. Most of the people who are using credit card develop a habit of buying unnecessary things even when they do not need it. This tendency of buying unnecessary things is also one of the reasons why people go into debt. People are not being able to save money as they end up paying their credit card bills, which they have spent on buying things which are not even required.

So, all these reasons are good enough for one to not make use of a credit card. After reading this, think again, whether you still need a credit card.

INFO: Credit card number generated are valid but DOES NOT WORK like an actual credit card. They do not have any actual REAL VALUE. They are for data testing and verification purposes only.