When there is no money or problem of cash, then credit cards play an important role in such times. However, credit cards come with extremely high-interest rates. It has been said that a credit card proves to be the best friend in times of crisis. But, if these cards are not used properly, then besides ruining the credit score, it can also push you into the debt trap.
This is one reason why experts warn people to be very cautious while using a credit card. This is especially true for those who are not very careful about their finances or who do not have the skills to manage money. These people are easily caught in the debt trap. So in this news, we are telling you about some people who should always avoid using a credit card.
- Shopping with enthusiasm
Such people spend unnecessarily and unnecessarily. Due to their spending patterns, they exceed their card limit. This is not good for them because banks make them understand that such people are credit hungry and their credit score goes down. Therefore, when these types of people apply for any credit in the future, there is a high probability that they will be rejected.
- late bill payment
Undisciplined and irresponsible bill payers are those who do not pay their bills on time or pay the most delayed bills. Therefore, it can be a risky endeavor for them to have a credit card after the payment has expired, delaying the credit card payment incurs a higher interest rate along with a penalty. It can spoil anyone’s credit report. Therefore, if you feel that you are not able to pay your bills, then avoid having a credit card.
- Those Who Spend Daily
People who use their credit cards for their daily expenses get caught in a debt trap and this trend continues. Credit cards charge high-interest rates in the range of 2 to 4 percent per month.
- Those who rarely use cards
There are people who have more than one credit card, but they rarely use them. As much use of credit cards disrupts your credit score, in spite of having a credit card, its purpose is reduced by not reducing or using it. If a credit card is not used, it means that the cardholder is not making full use of his card.