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8 Reasons To Say No To Credit

man in blue shirt holding two credit cards
Photo by Aukid phumsirichat/pexels

Making purchases via credit cards has become very common. People use it for shopping, to pay bills, and to make different transactions. But one should be very cautious while using credit cards. They have both benefits and disadvantages. The credit should be used only when it is truly necessary. You can use card just for an emergency situation if it occurs; however, ensure that you have cash on hand before making any purchases. The use of credit may be affected by the interest rate and the credit card fee, while you can buy a zero-interest credit card.

Regularly reviewing your budget could help maintain your credit card balance. The money you use by credit card is like a loan from the issuer of the card, and you have to pay back the amount within the agreed-upon time frame.

Moreover, credit cards can damage your budget scheme due to the interest rates. If you are not able to pay the balance that you get from the issuer of the card, you may be stuck with the additional interest rates. Additionally, you might be followed by the interest payments until you pay them off, or they might be continued for the rest of your life.

In this article, you will surely understand the reason behind saying no to credit cards.

Reasons to say no to credit:

The reasons to say no to credit cards are discussed below.

High Interest Rates:

When a person uses the credit card, it is like taking money from the lender, which must be paid back at the appointed time. When the credit card interest rates are high, you have to pay the loan with some additional money. This process puts the borrower in more debt.

For instance, if you make a purchase of $1000 with an interest rate of 18% at that time, you decide to pay off the minimum loan every month. You might pay $180 only the interest per year. In this way, you still have to pay $826 to the lender. It is very important to keep in mind the whole budget when you make purchases.

Rates on unpaid balances might increase:

The interest rate on the unpaid balance is increased in such a way that if a person doesn’t pay the loan, the interest on the remaining balance is raised. And still, if a person is not paying his credit card balance in full, the company’s interest rate is going to increase.

The interest rate is increased on the basis of the Annual Percentage Rate (APR). So the unpaid balance on your card may become a lot more expensive. That’s another reason for saying no to credit. You can get rid of this problem by using zero-interest-rate credit cards.

Unknown Terms and Conditions:

The company makes a contract with a borrower with different terms and conditions. The paper with fine print shows hidden terms and conditions for the borrower. These included the fact that the company has the power to increase the interest rate at any time when it is required. It also shows that the interest rate can exceed any range.

The company would inform you two weeks before increasing the interest rates. So, make sure that you are known and ready to face any change in interest rates. Ensure that you read all the terms and conditions before buying the credit card.

Damage credit score:

The credit score plays an important role when you buy a home or any property. If you do not make a plan to pay off the loan or if you use the balance unexpectedly, like for medical fees, home groceries, etc., your balance will double due to interest. In this way, your credit score may go down. This damage results in you not getting a job because the company might check your credit score before hiring you.

Moreover, the issuance company may also increase your interest. If you are not able to pay off the loan, you might think about neglecting the car and home maintenance. In this situation, you become an irresponsible person.

Credit discourages self-control:

Carelessness in spending money can cause various problems. If you are good at budgeting your expenses, then it will be easy for you to achieve your goals. But on the flip side, bad budgeting can put you under numerous loans and interest. The poor role in managing the expenses could cause problems between relationships and families.

Using credit causes more spending:

It might seem that when we use credit, we feel that we are utilizing our money wisely. But it is totally wrong, because when you make a purchase by using the credit card, you are also giving money to the card issuer. If you want to buy a product, it may happen that you will be attracted by other products as well, which results in you spending more. In this way, your monthly budget schedule may be totally disrupted. On the other hand, if you have $100 in your hand physically, you will make a purchase that is within your budget ($100) and prevent unnecessary expenditures. In this way, our monthly budget schedule may be totally disturbed.

Mental Stress:

If a person does not owe any money, then there is no need for tension, and it will keep your mind calm. This peace of mind is more important than buying anything. Credit cards are made for emergency situations only, but if you use them unnecessarily and don’t pay the dues every month, then keep in mind that a credit card is not for you. Because instead of taking advantage of it, you will get stuck in numerous unpaid payments and might put yourself in stress or depression.

It may cause bankruptcy:

Maintaining your mind’s peace without involvement in debt payments can give you a stress-free life. But if a person performs all his spending carefully, it would be good for him. On the other hand, credit cards might result in bankruptcy. This will happen if you do not pay your debt every month. Then it will be impossible for you to come out of this situation.

So, using a credit card wisely not only keeps your mind calm but also saves you from financial stress and bankruptcy.


A credit card can cause great damage to your financial position if it is not used wisely. So, it is very important to maintain your expenditures to protect yourself from the consequences of stress and depression. If you believe that you can’t handle credit cards wisely, then it is better to not have them.

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