Are Credit Cards Really the Danger That People Claim?

Posted by on Nov 4, 2013 in Credit Card Tips | 5 comments

Many consumers have misunderstandings about credit cards and credit companies. Credit companies often receive a bad rap from individuals who have accumulated huge amounts of debt and then have trouble paying off this debt. Financial advisors who deal with irresponsible consumers often suggest that individuals never seek out credit cards because they are dangerous and unpredictable. However, there is a huge population of consumers that uses credit cards responsibly and never experiences any problems with their credit card companies.

Credit cards are tools that must be used with integrity and responsibility. An automobile can be very dangerous when driven by a person who isn’t paying attention or acting responsibly. However, the actions of irresponsible drivers shouldn’t cause us to label all automobiles as dangerous. Here are some common myths associated with credit cards.

Myth: Excessive Debt is Guaranteed with Credit Cards

Many people mistakenly believe that a credit card automatically guarantees excessive and unaffordable debt. This, however, is not the case. Individuals who budget for minimum monthly payments and monitor their debt accumulation responsibly are perfectly capable of paying off a credit card in a timely manner. Some credit cards do have large interest rates, but many credit card companies offer reduced interest rates for responsible behavior and on-time payments.

Myth: Credit Cards Destroy Your Credit Rating

This myth is 100% false, and yet it is held by consumers throughout the world. Having a credit card does not negatively affect your credit rating. Your credit rating is destroyed when consumers with credit cards fail to make on-time payments. In fact, paying a credit card on time each month can actually improve your credit rating over time.

Myth: Credit Card Companies are Dishonest and Greedy

Many consumers assume that credit card companies are greedy and dishonest, but this is not the case. Credit card companies, like most other businesses, provide a service to you in exchange for a profit. Credit card companies don’t want to ruin your life or that of your loved one. They actually hope to develop lifelong customer relationships.

Myth: The Offered Perks are Never Worthwhile

Some consumers believe that the offered perks and rewards that come through credit cards are never worthwhile. However, some credit cards offer airline miles and other benefits that are valuable. It is the customer’s responsibility to read the information about perks and rewards and determine whether or not they will benefit from these offered benefits.

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5 Responses to “Are Credit Cards Really the Danger That People Claim?”

  1. Credit cards are not evil as many people think. They become evil when you misuse them. You have to pay your balances.

    • I agree, the ugly side of credit cards rears its head when irresponsibility creeps into usage. Otherwise, used responsibly credit cards can greatly ease our lives.
      Appreciate you stopping by

  2. ken murika says:

    I had my reservations towards credit cards but I think I am now seeing it from unbiased position

  3. Credit cards only pose as danger if you don’t know how to use it and you don’t pay your debt on time.

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