Life Time Free Credit Card

While they have many benefits, there may also be a few disadvantages to a credit cards. Here are some factors that may prove negative if you don’t use a credit card effectively.

• Over Usage: Since Credit cards give you an attractive credit limit, there may be a chance to make an unwanted purchase of the available credit limit, and can fall into a debt trap later, if fail to pay the credit card bill on time.
• Solutions: To avoid overspending you should not use more than 60% of your credit limit, this will save you from the bad debt trap, make sure to use a credit card only when you have an actual need.

• Damaged credit history: High usage of credit can affect your credit history, if you use a credit card limit of more than 80% & maintain a big utilized amount, it can create a challenge for your credit score, credit score may be decreased, as a result, you may face difficulties in loan approval from financial institute
• Solutions: To avoid high usage on a credit card, use a credit card when you needed most, don’t use a credit card all time when not needed, pay your credit card bills on time, and don’t maintain a high current outstanding amount on your credit card account.

• High-interest charges: Credit card offers you a 45-day interest-free period which feels good, but if you fail to make the payment post-billing period you can face high-interest charges on the total bill amount, which can be 40% per annum. 
•  Solutions: To avoid high interest and charges on the card, make a full bill payment on time before the due date of the credit card, a minimum payment of credit cards always imposed high-interest charges on the total outstanding amount, so it is always advised to make the full payment.

•  Minimum due charges:  This is the major drawback of credit cards, Credit card companies offer that a minimum amount can be paid off your total bill, and the rest you can pay later. People fall into the overspending trap and pay interest at a high rate to credit card companies.
•  Solutions: To avoid minimum payment due make sure to pay the full amount paid before the due date of the credit card bill, this will save you from higher interest charges imposed on your credit card which can be around 40% per annum, much higher than any loan.