Credit Card: Are they tricky?

Credit cards: Are they tricky? 

I am not really an expert anything regarding money and finances. 

So in today’s blog post about finances I am going to talk about credit card & debt & why are credit cards so tricky? 

Here’s what I know about credit cards. 💳

It’s not like ordinary bank card (debit card), it’s a card which has a credit limit & interest (interest rate) given it does put some people into debt, having financial problems (being unable to pay off transaction of payment). With or without credit score. It’s one of those things that you pay the minimum payment of the minimum amount & finishing the credit balance & all that stuff. All to avoid late payment fee charge by paying a credit card bill on time.

So the question is are credit card being tricky? The answer is yes. 

I know the differences between debit card and credit card. 

Debit card is for spending & it doesn’t have credit limit. Yet many people see credit card as if they have extra money to spend money on things without actual understanding what credit card are really for. 

On my personal experience although I have not really experienced any financial problems regarding credit card debt (except unfortunately I now have a credit card despite for last couple of years I never wanted to sign up to having one in the first place with the likes of credit card companies like Capital One, Barclaycard & others & that they have sending me a lots of letter to persuade me to sign up having one which I know which was all for marketing and advertising purposes) except two years when I experienced enough problems in 2019 when scammers took my money of my bank account 3 times & recently two times & that I don’t want any of unnecessary problems financially which does include the potential problem with credit card. Credit card debt. I have better things to do instead of being caught up in all of that. Some point in the future (one day), I will make my own decision to finally not having a credit card at all even if does impact my credit score (which I find ways to overcome it). 

Anyways 

My point is that credit card is not debit card. This is something that some people have failed to understand by believing the myth that you can spend many things as you like with credit card despite it is not “spending” card like bank card (debit card) & then all the sudden, the person (he/she) is in debt. That can prove my point that credit card are tricky and it can be gateway to debt especially if you are not careful financially. 

If you want to spend something (purchase anything online and offline to buy) then use a debit card. Not credit card. Credit card is for borrowing and loans.

So that’s why I am more of debit card person that you can make a payment without credit limit (without having to be in debt unless if person rent or own a place & regularly pay bills & mortgages). I am very sceptical on some things like credit card given debit card is better & that there are things that I do wish to avoid getting in debt & any of financial burden. 

That is why so many people would have unnecessary problems financially whether is a loan (any loan like payday loan) or indeed credit card cos credit card doesn\"t give any person a free money to spend whether the person wants to spend money on. It\"s just of that method that traps person financially by being in unnecessary situation (not able to pay off a debt).

Bankruptcy, overdraft (when the account goes to zero. Zero amount of money & that the person have to pay overdraft fees) and debt are the financial problems that brings stress that can affect any person’s mental health and self esteem. Given credit card is not by force. In other words, it is not compulsory. 

There are people in the world who has credit score without the need of credit card. google.co.uk There are other ways to boost up & build your credit score (credit rating) without having the need to have credit card & credit card alone is not the only option to boost up credit rating. thebalance.com uswitch.com experian.com Just because they are some people don’t have credit card, doesn’t really mean they are not good with handling money financially. 

When it comes to checking on & improving credit score, it is really about managing your finances well. Paying bills on time and repaying money that you borrowed (like loan money). 

All what I am saying just to help you understand (unless you do understand well) what I am coming from is that you don’t have to have credit card to boost up your credit score & if you do (although it is up to you entirely despite I won’t recommend credit card) is that you keep up the credit card bill payment & that you use it responsibly & correctly (unless you change your mind in the future or so) so that you won’t have to be in debt by default. After all, it’s your own decision. 

Credit score is about lenders looking up your score (rating) based on credit report so that lenders like credit card companies, companies, creditors & banks, etc can either accept you or not & that how they can lend you money by trusting you financially as an borrower to keep up payments with the chance of being accepted.

Credit card (yes, obviously which I mentioned enough already).

Loans. 

Mortgages

Car financing 

Gas and electricity monthly payments (utility bills)  

Moblie phone contracts 

Insurance monthly payments 

Property rentals (basically, paying for rent). 

Even subscription payments like Netflix and Spotify. 

Even they do prefer someone with credit card who has credit score which that shouldn’t really be the case at all.

So guys as I am wrapping up my blog post about credit card, I am saying for final time just to help you understand is that credit card is not “spending” card like credit card & that could be the gateway to debt & financial problem especially that can impact your credit rating. That I can say about this as I conclude that credit card are tricky.