I have been using Credit Cards from the last 4 years and as of now I have around 3 Credit Cards, each one serves their own purpose. I have used credit card extensively to built my Credit Score and as of now the Credit Score is standing above 830 which is quite good and all because of paying in full and om time.
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So keeping Credit Card is not bad at all and thus using it wisely can give you some advantage too. You should use Credit Card for your everyday purchased provided you have the money to pay at the end of the month. Whenever I want to buy a new phone, I keep the cash in hand and then buy it using the Credit Card to pay it at the end of the month. In this way I am not going out of budget and can pay it on time.
The biggest Scam in Credit Cards is the minimum payment. Say for example you have a credit card bill of $1000 so the minimum payment will come around $50 to $100. And the credit card companies ask you to pay that much only. Do you know what happens with the rest of the amount. The rest of the amount is charged with 35% interest per annum that means around 2.5% to 3% per month, which is huge.
And this is the way Credit Card debt gets accumulated if you do not pay it on time or only pay the minimum amount due. So if you are using the Credit Card, do pay it on full at the end of the billing cycle which is important otherwise you can get scammed too. And this is nowhere written in the application, they will say 3% per month and thus people gets fooled thinking it is 3% per year and thus get into the debt cycle.
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Mere saath Wale ke saath hua tha ye wala 😅,sabak ek ko seekh sab ko. Thanks good post as always.
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Ehh I thought it was a scam too.
Scam only if you get scammed
No wonder the interests keeps growing month after month. I think it's more of a technicality that we don't easily understand since the credit card companies don't explicitly specify it to us. Having a good credit score is really important.
That's correct, it is always better to check terms and conditions before going with any financial product.
Indeed, the problem is that many aren't educated enough to notice these kind of things.
That is why it might be a wise decision to invest in Mastercard and Visa!!!
Hahahha, yes they will continue to scam people
I've heard a lot about credit cards, but I haven't personally had one. Thank you for raising awareness about them - it could come in useful for me in the future! :)
Yes credit card if used properly is actually a very good thing.
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If it's a scam, it's a remarkably transparent one because people ought to read the terms and conditions of a credit card contract. People seem to live with the assumption that debt is a path to prosperity. I prefer to live with as few monthly bills as possible.
True, transparent one but again it's the problem with us too, we are so quick in accepting the terms and conditions now a days
I prefer free/open-source software because I hate corporate terms and dubious long-term support when I don't own my software. Crypto is the FOSS of money.