If you don’t have any credit card, it would be very hard for you to have good credit score but then not using a credit card has its own advantages and benefits. Some of the reasons why you should stay off from using credit cards are outlined below.
You’ve accumulated too much debt
For the first time in history, student loan debt has outpaced credit card debt. Recent graduates leave college strapped with tens of thousands of dollars in debt. When you have monthly debt payments that are up to hundreds then it wouldn’t be wise to obtain additional monthly bills. With an accumulated debts it simply unwise or a lack of financial sense to acquire or use credit cards.
You might spend above your means
Anyone who is reckless in spending or has a negative attitude towards spending is at a risk of having very serious financial issues when he/she obtains a credit card. It has been observed that most people transact or makes purchases with their credit cards rather than using cash.
No stable or enough income to pay your Balance
A person whose job is not stable or whose job seasonal, part-time may not be financially buoyant to pay a credit card balance. When you obtain a credit card with no stable income to pay your bills and expenses, being in debt will become inevitable or even a credit card damaged.
Shallow insight on the usage of Credit Cards
Someone who has little or no ideas about credit cards would think that using a credit card is something that is very easy. Apart from using your credit cards for purchases, there are so many other things you can do with the card. Anyone who is a novice on the usage of credit cards can browse through the internet and access the numerous ways or methods on how credit cards work and also how to use them wisely.
Bad financial habit
The usage of credit cards correctly involves a lot of financial discipline without which reckless spending will become inevitable thereby damaging your credit history. It is better not to obtain a Credit Card than to have one and ruin your financial future.
Avoidance of interest
When you pay your balance monthly in full, you will totally avoid paying interest.. It requires discipline not only to pay off your entire balance every month but also to make sure you keep your spending within your means.