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Why You Should Not Get a Credit Card

  • August 22, 2020

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As electronic payments take over, getting a credit card is seen by many as the right choice to make. Credit cards are available almost everywhere and have enabled people to get what they want even though they might not have the cash to pay for it.

You may be thinking of getting one because the idea of owning a credit card may appear lucrative, but that may not be the case. Before making a decision that you may end up regretting, here are some of the reasons why getting a credit card may not be such a good idea.

Lack of Self-Control

A lot of self-control is required while using credit cards. Financial discipline is a virtue that is considered hard to uphold. While using your credit card, the urge to spend more than you need arises, and this may lead to debt problems in the future.

Spending more than you need is further fueled by the fact that credit companies allow you to spend more cash than you have or can afford. You may want to refrain from getting a credit card if you know that you will lack financial discipline while using one.

You Might End Up Having a Poor Credit Score

Most people have the goal of improving their credit score, which mainly improves if payments are made and cleared on time and are of large amounts.

Reduction of your salary or losing your job may lead to the decline of your credit score, causing some problems in your life.

Finding employment with a low credit score might be hard since some employers do credit checks before hiring. Those who have poor scores are most likely to miss out on the opportunity.

You might also face difficulties in getting insurance coverage because most insurance companies tend to check your score when calculating premiums. Though there is still hope to those with poor credit scores, a number of organizations have programs that help people improve their credit score. One interesting program is the card holder referral program, which allows someone with a good credit score to use their reputation to improve the score of those with poor credit for a fixed fee. If you have a good credit score, check out here for more information. This might be a good way to earn extra cash. And if you have a poor credit score and wish to improve it, consider joining such a program.

Interest Rates Rises with Unpaid Debt

Credit cards offer an expensive method of financial aid in that they have very high rates compared to other forms of borrowing money like traditional bank loans. You may get into financial trouble when using credit cards without paying the debt.

The more unpaid debt you have, the more the interest rate rises, and this alone is quite alarming as it may lead you into paying debt your whole life.

Poor Spending Choices Affect Your Relationships

Studies have indicated that most families and those in relationships tend to fight more about finances than other subjects. In situations where there is not enough money, it can cause serious disagreements that may even lead to breakups.

Families and those in relationships are advised to at least have a budget on how to spend their money and try practicing financial discipline. Doing so will enable them to prevent future disagreements over poor spending choices that are the result of the use of credit cards.

Can Lead to Bankruptcy

Having a credit card may give you the idea that you can overspend, and this might make you develop a bad spending habit. Studies show that people using credit are likely to spend more compared to those who use cash. Overspending may go overboard and lead you to debt that you can't manage.

Although you might have a plan on how to pay your debt, things may not go as planned. For example, if you lose your job or having to pay an unsubstantial medical bill, then you are likely to declare bankruptcy.

Bankruptcy will affect your credit history for an extended period, making it hard to build a new good credit score.


Credit companies gain from those who make poor financial choices while using credit cards. They offer predatory lending practices that are meant to attract more people to use their cards and trap them in debt.

Credit will work well if you pay your balances off each month.If it is poorly managed, it may lead to serious financial risks and problems. You should consider other options like budgeting for what you can afford rather than getting a credit card.