Nowadays, most adults hold at least one credit card, and those who do not have a credit card are already in the minority. So why do so many people have credit cards, and why are some reluctant to apply for one? Here, let me tell you what are the disadvantages and traps of credit cards.
Disadvantages and traps of credit cards
1. Easy to steal
Credit cards basically default to password-free consumption, which makes them easy to be stolen after being lost or stolen. Others steal it, causing trouble and losses to yourself. To prevent this from happening, you can apply to swipe your card with a password.
2 annual fees
Credit cards require annual fees, but most banks can enjoy annual fee exemptions after meeting certain conditions, such as requiring at least three transactions a year and a certain amount. . This is because credit cards from different banks are different, so you need to pay attention to the annual fee exemption conditions for your own credit card.
3 It may affect the credit report
This possibility only exists for cardholders who owe a certain number of days and fail to pay off the overdraft in time. This will affect the personal credit record. , or even be blacklisted by the bank and become a black account, which will greatly increase the degree of borrowing from the bank.
4 Blind and excessive consumption
Swiping a card is not like paying with cash. It is easy for us to forget that we are spending money when paying, which leads to blind consumption; secondly, we may pay with a credit card Many installment products give us the illusion that the item is not expensive and costs nothing, but only when we repay the loan do we realize that we have unintentionally overdrawn so much money.
When paying with a credit card, the bank actually advances the funds to the merchant first, and we repay the bank on the repayment date, that is, consume first and repay later. A credit card is like a double-edged sword. You may use it to protect yourself, or you may use it to harm yourself, depending on how you view and use it.