Top 4 risks of using credit cards

Credit cards really very essential need of today’s lifestyle. It provides us with financial support and makes your difficulties easier to solve. A myth is all around spread about credit card is, it is very bad to use a credit card. And it is not wrong. Yes, it is a truth that using a credit card is not good because we are not using it properly. Here are some risks are shown in the article about using credit cards.


There are many things which make it risky to use credit cards. Top 4 among them are:

  • Overspending

The credit card is good because it provides us fund in our difficult times. But it is not made for those who can’t control on their urges. As it instantly gives us financial support when we do not have cash, so we feel very easy to buy everything. It makes them excited to buy more things. It results in overspending, and afterward, people can’t pay off the amount.

  • The decrease in credit scores

When you use credit cards a lot, then it causes a reduction in their credit scores. Your all transactions and records are in the records of credit bureaus. So when you pay off the amount late and taking loans regularly, then it can cause a reduction in your credit scores. It is risky when the credit score reduces. When you use a lot of credit card the utilization will be 30%-40% then the credit card issuers reduce the credit limit.

  • Credit card fraud

The fraud person usually does fraudulent activities with our debit cards and credit cards. We have to bear a lot when these kinds of fraudulent activities happen to us. They find out the fraudulent activities which are going with your card and take a new card in your name. A lot of services offer credit card dumps sites(august 2018, the economist).

  • Interest rates

The credit card issuers charge a lot of interest from you for using the credit card. These charges can be charged anywhere from you in between 22% to 47%. You have to pay more than you used the credit cards. Once you fail to repay your bill, then all new transaction also charges finance as you will not repay the last bill.


The credit card is not bad even it helps us in our emergency times. But there are many risks of using it, so use the credit card but in the right direction. Otherwise, you have to face all these problems.