amex credit card

What are the disadvantages of credit cards?

Getting trapped in debt: If you can’t pay back what you borrow, your debts can pile up quickly. ,
Damaging your credit: Your credit score can go down as well as up.




Getting trapped in debt: If you can’t pay back what you borrow, your debts can pile up quickly. If you have bad credit, you could get hit with high interest rates – and once you’re in spiraling debt, it can be difficult to pay it all off.

amex credit card
amex credit card

Damaging your credit: Your credit score can go down as well as up. Miss a payment on your card or allow debt stack up and this can damage your credit rating. This can make it harder to get credit in the future.

Extra fees: The interest rate isn’t the only number you need to look out for when choosing a credit card – there maybeextra chargestoo. Your provider could impose fees if you miss a payment or go over your credit limit, which is bad news if you’re already in the red. Some credit cards may have a monthly or annual fee, and many balance transfer cards charge a fee to switch a balance. Check the APR (annual percentage rate) to get an idea of the overall cost of a card.

Limited use: Credit card providers might charge you extra for things that are free with a debit card, such as withdrawing cash from an ATM or buying things overseas.

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2 thoughts on “What are the disadvantages of credit cards?

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