5 Reasons Why People Hate Their Credit Cards

Credit cards make our live easier in many ways. They allow us to travel without carrying a lot of cash, buy products at discounted prices (with the offers and schemes credit card companies provide from time to time), enjoy EMI payments, and most importantly- buy something we don?t have the money for at that point.
However, is it possible to have something to hate about the credit cards? The answer is-yes! Although credit cards have numerous benefits, they also tend to create problems as well. On that note, the following are the top 5 reasons why the people hate their credit cards:
High Rate of Interest
Many credit card companies advertise the convenience of making minimum payments on the credit card bills. What this means is that you can make the minimum payment to carry the balance to the next month. While you are not penalized for making the minimum credit card payments, the balance your carry still collects interest. So, if you are paying the full payments only occasionally, then you may have to pay a lot as the interest later, as the interest rates can easily be as high as 20% to 22%.
Credit Score Damage
If you don?t know what your credit score is then be sure to get a CIBIL rating online today itself. This is because; your credit score is the most important thing that determines your chances of getting a loan or a credit card.
The problem with using credit cards is that they can affect your credit score to a great extent. In fact, most people end up damaging their CIBIL rating online just because of not using their credit cards responsibly. For instance, not paying your credit card bills on time, collecting excessive debt, spending too much credit, etc. can all affect your score negatively. However, when the people who don?t know about it realize the same, they can?t help but hate their credit cards.
Frauds
Believe it or not, but credit cards frauds are common even today. It is easy to misuse credit card information for unauthorized purchases, etc. because the crooks can spend as much as the limit set on your credit card. Usually, they don?t even need to check your credit card physically, and can commit the crime using the card number and the PIN alone.
Credit card frauds are some of the biggest things that credit card owners hate, and it?s not hard to see why.
Annual Fees Most credit cards have annual fees, which can vary from Rs. 1000 to Rs. 3000. Usually, the more are the benefits offered with a credit card, the higher is the annual fee. However, at any rate, this fee is never appreciated by any card owner.
Surcharges and Other Types of Charges
When you withdraw money using your credit card, or make transactions equivalent to that (such as buying a foreign currency, etc.) you have to pay a cash advance fee, which is usually about 2% to 3%. It also attracts a high interest rate immediately. Business also levy a surcharge whenever you pay using your credit card. These are the additional costs that you have to bear when you use a credit card, and are a reason why people hate using credit cards so much.