Would it be better if credit cards had warning levels? - debt trap

 Would it be better if credit cards had warning levels? - debt trap

                               

Yes, of course, your credit card should have warning levels so that one can understand before falling into the debt trap.

Let us know some such points which you can easily understand:-

• Rejecting the offer to increase the credit limit

Many credit cardholders often avoid increasing their credit card limits for fear of overspending and falling into a debt trap.

Therefore, whenever this offer is made to you by the card issuer, you should consider such a credit limit enhancement offer.

• Ignoring reward point expiration date

   Cardholders can use the accumulated reward points under the Credit Card Reward Points program to purchase gift vouchers, convert them into air miles, and purchase items at select merchant outlets.

Many credit cardholders have the misconception that paying only the minimum due amount will save them from paying huge finance charges. Paying the minimum due amount will only avoid late payment charges and will not affect your credit score.

• credit card expiration

It is convenient to shop for goods on credit. Now you can buy whatever you want without worrying about paying. However, an emergency may require expensive purchases. A personal loan can help you avoid the financial burden that results from repaying the entire amount.

• juggling various loans

Imagine paying off one car loan, two personal loans, and two credit cards every month! You can consolidate all your loans under one roof; It can give you a fixed interest rate, single repayment every month, and of course peace of mind.

• Pay only the minimum dues

Credit cards offer you the option to forward your credit. However, making timely payments is important to clear the initial dues and maintain a healthy credit profile. To stop the loan, you can opt for a personal loan from  Bank at a lower interest rate.