Credit Cards – Smart Use, Potential Pitfalls

 Credit Cards – Smart Use, Potential Pitfalls

Credit cards can be risky if mismanaged. Overspending leads to debt, but careful use offers benefits:

1. Cashback and Rewards

Earn points or cashback for spending, redeemable for flights, hotels, or vouchers. Those rewards might tempt unnecessary spending.

2. Extra Perks

Enjoy free lounge access, travel insurance, and concierge services, but some perks are rarely needed or lead to more spending. 

3. Builds Credit Score

Timely payments and low usage improve your credit score, but missing payments can severely damage it, making future loans tougher.

Bottom Line:

Overspending and late payments increase interest and hurt your credit score. Approach credit card use cautiously to avoid long-term financial issues.