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Why You Should Not Use Credit Card..!!

Do you make purchases using credit cards? 

Does one want to understand why you should not be using credit cards?

A number of you'll think that employing a card is intelligent. There're basically three reasons that cause you to feel so:
• Reward points like cash back

• Zero interest if you pay on time
• No got to carry cash


We hardly got to pay the cardboard issuing bank anything aside from the minimum annual fee. Then how do these banks earn profit using their customer? Let's explain with an example:

We use Facebook for free of charge, right? Then how does Facebook make money? They use our personal data, likes and dislikes to point out the target ads which match our needs. Now you get the purpose that there is nothing free within the world.

Can you outwit the master/visa card companies?

When you use a card, the parties involved within the transaction are:
• The cardholder
• The merchant
• The merchant's bank

Each time you (the cardholder) pay using your master/visa card , the merchant's bank pays the cardboard issuing bank an interchange fee. some of this interchange fee is considered profit for the bank that you simply got your card from. On the opposite hand, the merchant must pay a further fee to the merchant's bank for handling the transaction request. the tiny amounts add up to form an enormous profit for the master/visa card issuing bank and therefore the bank's issue credit cards for the interchange fee within the first place.

Why shouldn't you employ credit cards?

Even though you recognize by now that the cardboard issuing banks make money through each of your transactions, it's going to not be clear to know why you should not use a master/visa card. To a card user, it's going to seem that you're paying 1000 Rupees using the master/visa card for a shirt that retails for 1000 Rupees. you are not paying a penny extra to shop for the shirt and you'll also make the payment within the maturity for your convenience. However, the cardboard plays the role of a generous friend who causes you to believe that you simply can afford the tiny expenses. When it is time to pay the credit bill, all the tiny expenses add up to burn a hole in your pocket.

How to handle the situation?

When you are making payments using the cardboard , you do not really witness a fall in your checking account. This, in turn, causes you to feel comfortable and causes you to believe that the acquisition is affordable. On the contrary, if you pay using cash or open-end credit , you'll notice the reduction in your wallet or bank balance. Therefore, the simplest thanks to make purchases is using either cash or debit cards. If you continue to think that cards are convenient and make online transactions easy, you ought to choose a open-end credit for an equivalent facilities. Moreover, you do not want to trigger the pain of losing your hard-earned money and let the bank enjoy the profit.


You can find more articles on at  https://thetaxsupport.com/blog/ 

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Location: New Delhi, Delhi, India

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