Reasons People Close Their Credit Cards

Reasons People Close Their Credit Cards

Many people believe that they will spend a lot if they have a credit card and hence choose not to open a new account or opt to close the existing one. The credit card interest rates are getting higher every day, also the annual fees can be high too but this should not be the reason for closing your credit cards. There can be ways to handle the credit card in a right method and you also need to understand its effect on your credit score if you do not have a credit card. If you do the payment regularly and maintain the expected credit balance on your credit cards you won’t have to close them. Credit cards can come in handy when you are not able to settle the balance with cash in hand. There are many ways to settle the credit amount like using the Ethereum Code automated trading robot to earn extra at your comfort. Having said that, many people chose to close their credit cards for various reasons mentioned here.

1) Spend more: The topmost reason people choose to close their credit card is that they think they spend a lot of extra amounts when they are using their cards.

2) Card Bonuses: Many people get credit cards looking at the bonuses offered by it. But with time they realize that they are not actually able to use these bonuses. Many cards offer bonuses like traveling miles when purchasing your ticket using a credit card. But not everyone travel frequently and so the miles cannot be enough to travel next time.

3) Cash is easy: Many people feel like using cash for the daily transaction is an easy option when compared to credit card. Using cash makes budgeting easy.

4) Restriction on impulse shopping: Many people think they tend to do more impulse shopping with a credit card as compared to cash.

5) Privacy: Credit card records all your transactions and people may not like anyone else to know what they do with their money. Cash transactions can be done without anyone tracking them and hence many people choose to use cash over the credit card.

6) Transactions: Cash closes most of the transactions there itself unless you choose to pay in parts. But with a credit card, you have to remember to pay back the credit balance after finishing the transaction. It might happen that you do not have the required amount when it is time to pay your credit card balance. Many people are not comfortable with this situation and hence choose to buy with cash instead of a credit card.