The Dangers of Using Your Cashback Credit Card Recklessly

Credit card dues, EMIs: Banks to give cashback even if you have not applied  for moratorium

One of the greatest dangers for gaining a cashback credit card is overspending to receive as much cashback rewards as possible. While this may seem like an advantage, it can quickly and easily backfire on you.

Any and all credit cards need to be utilized with care. The purpose of one is not to use money that you don’t have. They are to allow you to use money that you are about to have back within that month and to gain some rewards from your spending.

Let’s take a look at exactly why you shouldn’t be reckless with a cashback credit card!

Before that, find out more on Roshi!

Cashback Credit Cards Build Up Interest Quickly

When you don’t pay off the balance on your cashback credit card, you will gain a bit of interest on it. That interest will build up each month that you fail to pay it off. Should you fail to pay for several months or even a year, you may find yourself with far more debt than you can ever pay off.

The cost of interest for overdue payments far outweighs the benefits gained from your cashback rewards. You should only utilize the cashback rewards that you can manage, lest you risk your card getting maxed out!

You Can’t Reach Your Minimum Spend Requirement on a Maxed-Out Card

Once your cashback credit card gets maxed out, you can’t spend anything on it until you’ve paid off the debt. Because of this, you cannot make the necessary purchases to reach your minimum spend requirements and gain your cashback rewards. This causes your cashback credit card to become a source of debt rather than the means to gain some extra cash.

When you use your cashback credit card, make sure to only spend what you can safely replace by the end of the month. Anything more than that is a foolhardy risk that you simply shouldn’t take.

Find out also on available shell petrol credit card discount

Happy spending, everyone! 

 

Paul Watson