Why Consumers Are Afraid Of Credit Cards? – 4 Main Fears

At times of unstable economical situation many American consumers have found themselves afraid of anything associated with debt, and credit cards are one of the financial tools that come first in the list. So let’s figure out if credit cards are really that scary and how to avoid making costly mistakes.

Here are the four main fears related to the credit card use:

1. Overspending.

This concern is one of the most important as many people really spend more than they should while using credit cards. But other forms of payment can also lead to overspending, so just concentrate on tracking your spending. 

You can do it online, in real time. It’s also very convenient to use the mobile app, if it is provided by a credit card issuer. With many accounts, credit card users may set alerts to be reminded that the preset threshold has been reached. Take advantage of such options!

2. Missing the Payment Due Date.

If you miss credit card payment, be sure to be charged costly fees and penalties. But you can simply do your best to avoid such situations by setting up certain reminders online as well as using an auto-payment system that is offered by most of credit card issuers. 

Besides, you can do some research to find the cards which have no penalty interest rates or late fees (for example, Citi Simplicity or PenFed Promise). Still there is a risk that your late payments can be reported to the credit agencies, meaning that your credit score can be negatively impacted. So, reminders seem to be the best option.

3. Annual Fees.

Annual fees are one of the reasons why people avoid using credit cards. But there is a way out. Premium credit cards are usually associated with the annual fees which are justified with the offered benefits and rewards. 

However, there are still cards which are offered with no annual fees, but also have certain advantages. Consider such credit cards as Discover it, Chase Slate, Citi Double Cash, etc.

4. Other Extra Fees.

In addition to late and annual fees, some Americans are afraid of other charges which may be associated with the credit card they use. The thing is most credit card issues charge additional fees for balance transfers, cash advances, foreign transactions, etc. 

And that can be rather costly. Thankfully, you can choose among simple credit cards which are provided with no additional fees mentioned. Just do some research and find the card that suits all your needs and wishes.

So, there is no need to be afraid of any financial services offered today. Many of them are really useful and may work for your benefit, if you make the right choice. Most of American consumers and people all over the world get used to paying with credit cards as it is very convenient. 

Maybe it is not necessary to refuse using the option? Just spend some time for careful research and be sure to find what you need.