Why Do People Fear Credit Cards? And Is it Rationale?

Some people see credit cards as a useful tool while others think it could lead to a financial slippery slope of trouble. 

A credit card is an excellent tool that is used correctly and we’re going to tell you how:

1- Worried You’ll End Up Spending Too Much

While you can spend too much if you have a credit card, it also gives you more information and control on what you’re spending. Most banks offer the SMS service whereby you receive a message of each transaction you make and that can make it easier to keep a log of all your spending on a daily, weekly, or monthly basis. 

2- You’ll Get Charged Too Much Interest

Most credit cards have a grace period between 45-58 days where they charge you interest. Be sure to pay off your credit card during that period and you will never have to pay interest. 

Most banks offer the SMS service whereby you receive a message of each transaction you make

3- Will It Affect Your Credit Rating “I-Score”

While credit cards do affect your I-Score, they do so both positively and negatively. I.e. if you pay your credit card on time your credit score will increase, so use your credit card right and it will benefit you.

4- Worried It Gets Stolen and Is Used for Large Purchases

Credit cards are actually much safer than cash or even debit cards:

• You control the limit, as such, you can maintain different limits for different cards depending on where you use them
• Physically most credit cards require a PIN (Personal Identification Number) to be used, online they now require an OTP (One Time Password)
• If your credit card is lost or stolen you can call your bank and stop its use immediately.

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