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5 Reasons Why it Isn’t Wise to Use Your Credit Cards for Everything

You need to be very careful while using your credit card as it may cause more problems for you. Keep reading to know why it isn’t advisable to use your credit card for everything.

Credit cards are indeed very helpful for people who need the money right away for an emergency. They allow you to purchase something and not pay for it yourself at the moment. The higher your credit limit is, the better for you. However, is it smart to use your credit card for everything?

Using your credit card can be beneficial for you, sure, but using it for every little thing isn’t something we’ll vouch for. It has its own list of cons that may sometimes outweigh the pros. Hence, you need to be rather careful with your credit card. Here’s why.

1. You’ll Have to Pay Your Credit Cards Eventually

Using a credit card doesn’t mean you won’t have to pay at all. There’s a time limit until you’ll have to return what you borrowed. The money in your credit card isn’t yours; it’s from the bank as a facility that it provides you for emergencies. Whatever the amount you spend, you’ll have to return at some point. Failure to do so will result in the bank canceling your card, and they’ll even hold an asset of yours as collateral until you pay what you owe.

2. Higher Interests

Credit card charges are especially higher because there’s an interest that’s charged on each transaction. If you pay through your debit card (your money), there won’t be any interest. However, that sadly isn’t the case with credit cards. So, if you make a transaction with your credit card, along with the money you owe, you’ll have to pay the tax and the interest charges. So, using your credit card will result in you paying more money.

3. Poor Credit Scores

If you are, for any reason, unable to pay your credit card bill, it won’t look on your credit statement. Your credit rating means a lot for many purposes. Whether you’re trying to borrow more money from a financial institution or an individual or trying to invest in real estate, a poor credit rating will translate into your unwillingness to pay back your dues, which obviously won’t do you any favors. Hence, using your credit card too much reduces your strong credit score.

4. Credit Cards May Lead to Bankruptcy

If you get into a habit of borrowing too much, it can eventually become highly problematic for you. If you can’t pay all the money back within the period given to you, the bank will label you as bankrupt, which will ruin your credit score so badly, and you’ll never be able to borrow money again. Your credit rating will be scarred for a good ten years, and then, you can say goodbye to any further borrowing and investing.


5. Peace of Mind

Knowing that you owe so much money can disrupt your peace in so many ways. There’s nothing more important than having stable mental health, and money matters are one of the biggest reasons you might suffer from poor mental health. Hence, borrowing and owing too much isn’t worth your mental peace.


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