Credit cards are extremely useful in this day and age. You can use it to purchase anything online --- from basic goods to luxury items. It can be a lifesaver during a financial crisis. It also comes with lots of freebies, reward points, cashback promos, and more.

There are many reasons why having a credit card is a good idea, but holding it in your hand is like carrying a double-edged sword --- the benefits do not come risk-free. You need to be mindful of these dangers so you do not end up regretting them.

Here are some instances and reasons why you shouldn’t get a credit card.

You Have Substantial Debt as It Is

If you have upcoming loan repayments and no means to pay, using a credit card to settle the debt sounds tempting. However, it takes a lot of self-control to manage a debt using a card.

Additionally, you need to find a card that offers a good deal on money transfers for this to work. It allows you to transfer the full amount from the card to your account under a lower interest rate, which is the only way to pay off your debt.

However, you need an excellent credit score to qualify for cards that charge 0% on money transfers. With your current financial situation, there is a good chance that you won’t be approved.

On the other hand, if you apply for other cards that charge interest on money transfers, you would only end up paying more than the loan you are trying to settle originally.

The Interest Rates Are High

It is common knowledge that credit card interest rates are high. Whatever you buy with the card may end up being more expensive than if you pay for it in cash.

While some cards offer a low annual percentage rate or APR, this increases quickly if you fail to pay the balance fully. It is not uncommon for an 8% APR to suddenly soar to 29% in an instant.

Getting an item at a much higher price is something that you would not want, even you are given the advantage of paying for that item later.

The good news is that if you manage to pay off your balance in full from month to month, you can use a credit card without paying a single cent in interest. However, you need to have the financial means and self-discipline to pull it off consistently.

You Just Lost Your Job

The COVID-19 pandemic was devastating not only to lives but to livelihoods as well. Many businesses were forced to close their doors permanently, and countless people lost their jobs.

If you are one of them and still haven’t secured work yet, now is not a good time to apply for a credit card. Virtually all card providers will look at your income, which shows your capacity to manage credit card payments. Without a job, the card providers will have a hard time deciding in your favor.

To make things worse, your credit score will be lowered by a few points if your application is denied.

Your Credit Score Will Take a Hit If Your Balance is Unpaid

The importance of your credit score couldn’t be stressed enough.

It determines whether you qualify for a loan or not. It also determines what interest rates you will pay. Insurance companies use it to define your premium for auto or home coverage. Landlords will accept or reject your application based on it.

The list goes on, but in essence, your credit score can help you or hurt you, depending on how good or bad it is.

If you fail to pay your credit card balance, your credit score will suffer. Financial institutions will see you as a high risk, making it harder for you to qualify for loans.

Your insurance premium will increase, putting more stress on your budget. Some employers may even hesitate in hiring you if your credit score is too low, thinking that you are irresponsible in managing your finances.

There are many ways that your credit score can affect your life, so you must guard it against potential risks like a mismanaged credit card.

It Can Bury You in Debt If You Don’t Have Self-Discipline

A credit card can give you a false sense of security, making you think that you have more spending money than you actually do. You could end up purchasing items that you could not afford, especially if you do not have the self-discipline for it.

If you know yourself to be weak in the face of such temptations, it might not be a good idea to get a credit card. It is easier to resist the urge now that you do not have it yet than later on when you have experienced its benefits.

Some will argue that having a card can improve your credit utilization, which is vital for your credit score. Still, there are other, safer ways to build credit. One is applying for a credit-builder loan where the money you borrow sits safely in a savings account until you have made enough payments.

Another is getting a secured credit card with a credit limit not exceeding the amount you deposited for it. The key is to choose an option that does not put you in a vulnerable position.