Why Are People Scared to Have Multiple Credit Cards?

In the recent world, banking business has provided new technological facilities that are making our lives easier than ever. Starting from online banking transactions to payouts through cards, transferring money from world’s one end to other has become a regular exercise. The two basic types of cards, Credit and Debit cards have made the transaction a simple process. However, some people are yet not used to the system and some are afraid of using it for various purposes. Here, we will talk about why people are afraid of using credit and debit cards and how can these issues be solved.

Reasons to be Afraid of Multiple Credit Cards

People usually use multiple credit cards to earn more credit points which can benefit them in getting a loan, reducing insurance rate and even get themselves a job. But not everyone is familiar with these advantages. They mostly fear using multiple credit cards because –

  • They don’t like using banks for money transfer. They fear banks might loot them instead of saving their money. They think using a credit card will increase the chances of a bank trapping them with debt.
  • The idea of taking or borrowing money from a bank makes people feel indebted towards the bank. They don’t prefer to have such a risk which can become a serious issue if there is any problem with transactions.
  • Everyone does not have a fixed monthly salary. While using a credit card, the amount taken from the bank will be charged from your account on a monthly basis. Usually, depending on the salary these allowances are given which is not applicable in some people’s cases.
  • They fear to spend too much through credit cards and end up going to jail for not being to pay the debt back.

How to Get Over the Fear

These above fears are likely to come in mind of a novice in bank dealings. If you are a regular you know there is nothing to worry about. But for that, you must keep a few things in mind –

  • Build credit history by transacting through credit cards for future loans and insurance benefits.
  • Stay alerted about fraudulent websites and try to keep a check on your payments and debt rate. Your payments on the card should never exceed your income.
  • Have an insurance and cash coverage for unexpected situations.
  • Know the law and try to follow it to avoid legal issues.