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Credit cards can be a great way to build credit and earn rewards , but they can also be a major financial burden if you don't use them responsibly . Here are a few of the potential downsides of using credit cards:
1. High Interest Rates
If you carry a balance on your credit card, you'll be charged interest on that balance. Credit card interest rates are typically much higher than the interest rates on other types of loans, so it can be very difficult to get out of debt if you're only making minimum payments .
2. Late Fees
If you make a late payment on your credit card, you'll be charged a late fee. Late fees can be very expensive, and they can add up quickly if you're not careful .
3. Over-Limit Fees
If you charge more to your credit card than your credit limit allows, you'll be charged an over-limit fee. Over-limit fees can be very expensive, so it's important to stay within your credit limit .
4. Annual Fees
Some credit cards charge an annual fee just for having the card. Annual fees can be very expensive, so it's important to make sure you're getting a card that doesn't charge one .
1. High Interest Rates
If you carry a balance on your credit card, you'll be charged interest on that balance. Credit card interest rates are typically much higher than the interest rates on other types of loans, so it can be very difficult to get out of debt if you're only making minimum payments .
2. Late Fees
If you make a late payment on your credit card, you'll be charged a late fee. Late fees can be very expensive, and they can add up quickly if you're not careful .
3. Over-Limit Fees
If you charge more to your credit card than your credit limit allows, you'll be charged an over-limit fee. Over-limit fees can be very expensive, so it's important to stay within your credit limit .
4. Annual Fees
Some credit cards charge an annual fee just for having the card. Annual fees can be very expensive, so it's important to make sure you're getting a card that doesn't charge one .