¿Por qué no necesita una tarjeta de crédito?

Credit cards are used when the person has insufficient balance in his / her bank account. That is why it is called “credit” card. It lets someone borrow money almost instantly of course with a credit limit. The best part about credit cards is that they can make significant transactions even though they do not have the required financial stability. Nowadays, for something that has a credit card is risky and expensive. Now they are moving towards other modes of payment.

People usually borrow credit cards when they are you need to borrow money. People do not like the repayment policy of credit cards, so they are changing their minds. The person needs to pay a higher interest rate. Many people spend money unnecessarily when they have a reasonable credit limit. So today we are going to list down reasons why You Don’t Need A Credit Card.

Here are the top reasons Why You Don’t Need a Credit Card

There are several points which affect the personal choice to avoid the use of credit card. Nowadays, people are cutting off their credit cards because of certain disadvantages. The introduction of electronic wallets has reduced the use of credit cards. Now we are discussing each point in brief.

Higher interest rate

The credit cards charge a higher interest rate. That’s why people are avoiding them. People use a credit card when they do not have the required balance in their accounts. It works like loan money, which is the person who needs to repay within a limited period. The person needs to pay the money at a higher interest rate.

There are many sources of borrowing the loan at a lower interest rate. That’s why people are not using credit cards. If you want to borrow money, you should directly visit financial institutions to offer cash at less interest rate.

Liability for the Cardholder

When the person uses the credit card to make the payment, they become liable to the bank. It means that the person has to make the payment within a specified period to clear their debts. The interest is charged till when the person does not make the full payment.

The person does not make the payment on time. Then the bank forfeits their credit card or charge a higher interest debt to your account. Borrowing loans from the market has a more extended repayment period; that’s why people do not use credit card money.

Overspending

This is probably the most important part of this article and proves that you You Don’t Need A Credit Card! Some people have a mindset of spending a lot of money, no matter whether they have borrowed the money. Credit Card allows spending money, so they sometimes make useless purchases. Overspending is a bad habit that may cause specific problems as the person needs to repay the amount in less time. It’s better not to have a credit card if you cannot control yourself from spending.

It is a common reason why people are giving their credit cards back to the bank. Sometimes parents give their credit cards to children, and they misuse them. So if you want to give money to your kids, then avoid credit cards.

Not a solution for emergencies

Earlier people issue credit cards to use them in case of emergencies. Nowadays, the sources of getting are increasing; that’s why people are stepping out of credit cards. Credit cards are not useful for emergencies when you need to pay a high amount of money. The credit limit varies from person to person, so it is not beneficial for everyone.

And the main reason for the credit card is that people need to pay the full amount every month, which is sometimes impossible.

In conclusion

Here we have discussed several reasons why people are not using credit cards in today’s time and you don’t need a credit card. Firstly, the two primary reasons are that credit cards charge higher interest rates, and people cannot control their spending. The use of credit cards is decreasing because there are many other sources of borrowing money.