10 Reasons Why People Hate Credit Cards

By | June 1, 2017

10 Reasons Why People Hate Credit Cards

Have you ever had people tell you Credit Cards are bad for you or have you maybe eavesdropped on a conversation about how they can’t “afford” a Credit Card? There are several reasons why people hate Credit Cards.

If you are here to make an informed decision before getting a Credit Card, you’re doing the right thing. Kudos to you for depending on your own judgement rather than somebody else’s. You know why? Because not everybody has the same financial needs and ability to handle a financial instrument.

Here are the top 10 reasons why people refuse to get a Credit Card:

  1. I Will Overspend!

People who love to spend, but cannot keep track of their expenses, are most likely to get into Credit Card debt. A Credit Card does give you the freedom to buy whatever you want, whenever you want, but it also means having to pay the bank back when you have the money.

Some people even go overboard on their spending limit, burying themselves under a load of debt.

Additional Reading: 9 Things Indians Tend To Overspend On

  1. Oh! The Fines Are Huge!

Obviously, when you don’t keep track of expenses, you’re going to overspend, which will result in massive charges. Credit Cards have an Annual Percentage Rate (APR) that is calculated on a yearly basis and added to any balance that is carried forward from the due date of your payment.

Technically, if you pay off the money you spend on your Credit Card before your due date, you won’t be paying anything extra out of your pocket.

Additional Reading: Understanding The Interest-Free Period On Your Credit Card

  1. Who’s Going To Bear My Burden of Debt?

People that profess their hate for Credit Cards have probably been told right from the beginning that debt is a bad thing. Debt is the villain you don’t want to cross. Debt is the boulder you don’t want to get crushed beneath blah blah blah!

For a change, let us tell you otherwise. Not all debts are bad. Some debts actually help build your Credit Score. If you have maintained a spotless track record of paying off your loans and outstanding dues, it means you can handle debt like a pro. Banks will be more than willing to lend you money when you apply for a loan. Isn’t that cool?

  1. It’s Too Tempting To Have A Credit Card

People quote several studies that show people spent more when they had a Credit Card. However, with great power comes great responsibility. Look at it this way. When you have a Credit Card, you can keep track of your expenses and do a lot more with your card as opposed to when you don’t have one.

Additional Reading: 5 Tips To Curb Your Spending In 2017

  1. My Traditions And Values Don’t Permit Me

Some people won’t get a Credit Card just because their grandfather didn’t believe in getting one. Some conservative families like to circulate money among themselves and would rather borrow from a friend or family member than get it from a bank.

With all due respect to family values and traditions, the financial scenario of our country isn’t the same as it was a decade or more ago. We live in a globalised world where everything is data and technology driven. If you know how to use a Credit card, it could open you up to a world of convenience.

  1. What If We Get Hit by A Global Financial Crisis

Concerns like these are philosophical in nature. What if our economy tanks and we face something like the Great Depression? Should we take a debt risk?

Some people believe that borrowing their way to wealth is not the safest option. But, have you ever given this a thought? Buying your dream home would be slightly difficult if you didn’t have a credit history. You could spend all your life saving up for your dream house and pass away without living in it! How sad would that be?

By opting for a basic Credit Card, you can build your credit history over time by paying utility bills, grocery bills and making other small purchases, which you can pay back easily every month. Within no time, your credit history and Credit Score will be in the pink of health.

Additional Reading: Score With Your Credit Card

  1. The Application Process Is Too Tiring

Those who have complained about the tiring application process for Credit Cards have probably never applied for one. Today, banks give instant approvals since everything is digital. If you do fit the bill (Credit Score and other aspects factored in), a card will be issued fairly quickly. The entire process is as easy as ABC.

Additional Reading: Instant Paperless Approval For Loans And Credit Cards

  1. I Like Dealing In Cash; Cash Is King!

Wait! What? We didn’t just hear you say that. In a world where mobile wallets and cryptocurrencies are ragingly popular, why would someone want to deal in hard, cold cash unless there’s no other alternative?

Credit Cards are much easier to carry around. You don’t have to worry about losing cash because you can always block your card if you lose it. The thief probably wouldn’t get direct access to your account and any faulty transaction can be reversed if your Credit Card has been tampered with or stolen.

Additional Reading: A Credit Card With Fingerprint Sensor

  1. I Already Have Too Much Debt

Every financial situation needs to be handled differently. If someone’s been telling you that they can’t “afford” to get a Credit Card because they already have too much debt on their hands, then that’s probably because they haven’t managed their finances very well.

On the flip side, a Credit Card, if used wisely, can come in handy for quite a few expenses and can even tide you over during a cash crunch.

Additional Reading: Debt Consolidation 101: Getting The Basics Right

  1. I’m Too Young/Old To Have A Credit Card

Age is just an excuse to avoid being financially responsible. You are never too young or old to get a Credit Card. Today, there are Credit Cards that suit people from all ages and walks of life.

A Credit Card can be a chainsaw if you don’t keep track of your expenses. It can damage your Credit Score and saw away at your mental peace.

Here are a few tips to happily co-exist with a Credit Card:

  • Pay off your Credit Card dues on time. Request the bank for reminders in the form of SMS and email alerts.
  • Make sure to get a card that fits your needs, but be sure to get one with zero or minimum annual fees, low interest rates and a long grace period.
  • Get a rewards card that you can make the most of. Some cards are high on air miles while others are big on cashback and redeemable points.
  • Make sure to get statements and check your credit report every few months to keep track of how much you are spending or if there has been any miscalculation.
  • Get a chip-and-PIN card. They are more secure. The EMV cards have more protection from fraud. Make sure to report any suspicious activity on your Credit card. Don’t forget to link your card to your phone and email.

Want more tips?

Now that you are thoroughly educated on why Credit Cards aren’t actually as scary as some people make them out to be, maybe it’s time you got yourself one.

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