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Have you ever met any credit cardholder who shares that they are afraid of owning a credit card due to several different reasons? What are the most common fears people usually have when owning a credit card? Most of these fears are results of how the credit cards are used rather than the credit cards themselves. The article below will help you understand these fears better and ways to overcome them.

1. The fear of bad credit ranking

Your credit rating can constantly be assessed and evaluated based on your payment history. Hence, for those people who care about their credit rating, they are always careful with every transaction or activity made with credit card to make sure they don’t negatively affect their credit rating. However, one thing that every credit cardholder should remember is being responsible for your credit payment is a foundation of maintaining a stable credit rating. No matter how careful you are with your transactions, your credit rating can still drop if you do not pay off your credit payment on time.

2. The fear of overspending with a credit card in hand

This is a very common fear and it sometimes affects one’s decision when opening a credit card. Some people often worry that, once they own a credit card with a certain approved limit, they will start swiping their credit card uncontrollably and end up with a large amount of debt at the end of the month.

However, the amount of debt you owe is entirely the result of your spending decisions. Therefore, to make sure your debt doesn’t go beyond your financial limit, come up with a personal budget and make sure you stick with it. Having a clear personal budget will help you know how much you can spend and when you should stop spending. Understanding your financial limit will help you overcome this fear.

3. The fear of having your credit card information stolen

The risks of having your credit cards stolen or abused are always warned on many different communication channels. Hackers and thieves can have several ways to access your credit card information, such as: via the internet, via SMS text messages, via ATM machines, etc.

To minimize these risks, many banks equip their issued credit cards with EMV chíp to protect customers’ credit card information from being abused. However, you should also keep your credit card as safely as you would keep your wallet. And don’t forget that you should only use your credit card at trustworthy locations. Find out other card safety guidelines you should know here.

4. The fear of ending up with unaffordable debts

Some people often think that credit cards are a way banks push customers into falling into debt. And then when people do not pay the debt off on time, the debt becomes even larger with interest, late payment fees, etc. This perception is not only applied to credit cards but also to any other loan product or service provided by banks.

Although credit cards are products provided by banks so you can use first and pay it off later, you are in total control of how you use it. You will not end up with a larger debt if you know your limit and pay off your credit limit on time. One other thing that you should also remember is to avoid asking for an increase in your credit limit when you don’t think that you can afford it.

As you can see, these fears associated with credit cards can easily be eliminated if you know how to use your credit card properly have a reasonable personal budget. Find out more about Timo Mastercard here.