Credit Cards are tempting, but try to avoid them.

With regular calls from agents, you might be tempted to opt for a credit card and start using it right away.

However, you might not know about some of the reasons because of which credit cards can destroy not only your credit score but also your life.

Here are a few reasons why you should avoid credit cards.

1. Damaging your credit score

This is not mentioned a lot, and most of us don’t even know about it. With every default or every time you miss the due date for a payment, your credit score is being dented, and that is not good for your future.

2. Deceiving minimum payment

With a credit card bill in your hand, you might notice that they have mentioned that a small amount is to be paid as a minimum payment. It might look perfect for you but you do not realize the interest payment on the remaining amount will be considerable. This means you’ll not only end up paying high interest rates, but also you’ll heartily realize the impact of the same after the first few months. Later on, things will start getting complicated, and it will be difficult for you to settle your claims later.

3. Paying for things you cannot afford

Some see it as a blessing, but buying something that you actually can not afford is not a blessing, it not only adds to your debt but also forces you to take a wrong step in the future.

Some people think that credit card consolidation will be an ideal solution in this case, and they will be in a position to put things back in order. Credit card consolidation is important for those who have many credit cards, but at the end of the day it will not be a major relief, you are still stuck with the same amount of debt and the interest rates.

4. Hidden charges

Call center executives might not tell you about certain charges and respective interest rates that will be levied on you, while persuading you to opt for a credit card.

Focusing only on the positive side makes you blind for the risks, and this means you’ll not be in a position to determine the negative effects of a credit cards if you do not keep a clear head.

If you’re determined and you know you’ll be in a position to tackle every issue with regards to your credit card, make sure that you learn about every risk that is attached to the credit card you’re planning to opt for. Reading the fine print, in this case, is extremely important, and it should give you an idea about the negative side of opting for a credit card.