[READER QUESTION] When is it Dangerous to Use Your Credit Card?
Having a credit card is important as it can help us build credit when we want to make an application for a loan or mortgage. I love to talk about the benefits of having a credit card and using a credit card because the rewards and benefits are infinite. Having a credit card will help you build your credit score as well as build trust in financial institutions to help you in times of financials needs.
However, there will be a time when I would not recommend using a credit card for your purchases. When you don’t have the ability to pay your bills, then you should not use your credit card. It’s as simple as that. If you know that you won’t be able to pay for your credit card bill, then you should not use it because the interest will only continue to build each month. With high interest rates on credit cards, unpaid bills can end up being a big hit to your credit score.
When travelling to foreign countries, you may be hesitant to use your credit card because of the unknown hidden fees which may accompany the purchase. One advice to counter this is, if you don’t trust the company then do not use your credit card. Chances are, you could be locked in a series of foreign transaction and service fees on your monthly statement after you’ve returned from your trip abroad.
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