Credit cards' biggest downfall is high-interest rates. A balance can lead to quick, unmanageable interest accumulation. With some cards charging up to 25%, debt repayment is challenging.
Credit card companies often require a minimum monthly payment. Paying only the minimum extends pay-off time and accrues more interest, leading to a continuous debt cycle.
Credit cards can lead to unintentional overspending and impulse purchases as we may not realize our expenses. Unlike debit cards or cash, they aren't limited by on-hand cash, causing potential debt.
Irresponsible credit card use can significantly damage your score, leading to higher loan rates or even credit denials. Maintain a good score by using cards wisely.
Having numerous credit card options might tempt you to apply for multiple cards. However, it can lead to overspending, missed payments, and may temporarily lower your credit score.
Balance transfer offers might seem like a solution to high credit card rates. However, these offers often include fees and may not be beneficial long-term. This often leads to endless, unpaid debt transfers.
Online shopping increases credit card fraud and identity theft. Unauthorized access to your card info can lead to illegal purchases and new accounts, causing financial harm.
Your credit utilization ratio (amount of credit used vs total available credit) affects your score. Keep it low for a good score, and to avoid difficulty paying off balances.
Thrift stores have unique, cheap items but can also bring unwanted pieces. Avoid costly errors by steering clear of these 10 Things to Never Buy at a Thrift Store.
Mistakes can impact our lives deeply and cost us time, money, and self-esteem. Learn about the 15 worst decisions you can make at Inspired by Insiders.