When Should You Not Use Your Credit Card?

We all agree that credit cards are better tools for settling payments. However, we have circumstances when it is safer and discreet for you to avoid paying using your cards owing to various risks that can arise from such usage.

In our discussion, we shall explore some of the reasons you may need to avoid or suspend using your secured credit card with no credit check and low interest rate. You might have never thought about these simple things, while taking them into account may save you a great portion of funds.

After midnight or when you are drunk

If you are a person who lives an active nightlife, then you need to avoid using your credit card after midnight. The wee hours of the night are some of the times you should not use your credit cards especially if you are drunk. The reason here is that you are not in your best mental state to make sound financial decisions.

If you are approaching your credit card limit

Another situation that makes using your credit card indiscreet is when you are approaching your credit limit because doing so will reduce your credit score. The best thing to do during such times is to ask your issuing company to raise your limit or get another means of making payments.

If you smell a rat, do not take the risk

Another circumstance that will prompt you to avoid using your credit card is when you suspect the card operator could skim your credit card and steal your information while you are looking on. If your instincts tell you that the waiter or pump attendant could skim your details, just stay safe and avoid making that transaction since it may expose your card to theft.

When you receive a notification regarding your rate rising

The fourth situation that should make you avoid using your card is when your card issuing company sends you a notification indicating your rate is about to go up. The essence of such a notice is that you have to stop using your card, and hence, you need to talk to your card issuer to retain your old rate. Alternatively, you could switch to another company that offers a lower interest rate.

When you are applying for a mortgage

If you are applying for a mortgage, you have another reason not to use your credit card. The reason is that most of the mortgage financiers do not like huge credit card balances. Therefore, you need to ensure that your credit card has zero debt or else you risk losing your chances of getting the mortgage facility because the financier will perceive you as a high-risk borrower. It is therefore wise to postpone all big credit card purchases until your loan has been approved.

Credit cards are convenient and safe means of settling your financial obligations. However, you have to know when you need to avoid using credit cards to avoid unnecessary financial troubles. We hope that the insights we have shared in this post will help you to handle your transactions more discreetly.