The downside of credit is not something that any credit issuer would tell you about. But let’s face it, the biggest downside of credit is Credit Cards. If used properly, though, they can be beneficial, especially if you are trying to establish credit for the first time or even if you are in the rehabilitation stage.
Here is a list of some cons of credit:
- Temptation to overspend
- A lack of understanding fees and interest rates
- Mis-use of credit can damage your credit and lower your score
- The (improper) use of credit can reduce your income if not managed properly
- The term of credit can be overwhelming
Be aware of credit cards interstate’s rates, terms and fees and when you are making any type of purchase always count the cost first so that you can maintain a great credit history.