I have been using Credit Cards from the last 4 years and as of now I have around 3 Credit Cards, each one serves their own purpose. I have used credit card extensively to built my Credit Score and as of now the Credit Score is standing above 830 which is quite good and all because of paying in full and om time.
PC: Pixsbay.com
So keeping Credit Card is not bad at all and thus using it wisely can give you some advantage too. You should use Credit Card for your everyday purchased provided you have the money to pay at the end of the month. Whenever I want to buy a new phone, I keep the cash in hand and then buy it using the Credit Card to pay it at the end of the month. In this way I am not going out of budget and can pay it on time.
The biggest Scam in Credit Cards is the minimum payment. Say for example you have a credit card bill of $1000 so the minimum payment will come around $50 to $100. And the credit card companies ask you to pay that much only. Do you know what happens with the rest of the amount. The rest of the amount is charged with 35% interest per annum that means around 2.5% to 3% per month, which is huge.
And this is the way Credit Card debt gets accumulated if you do not pay it on time or only pay the minimum amount due. So if you are using the Credit Card, do pay it on full at the end of the billing cycle which is important otherwise you can get scammed too. And this is nowhere written in the application, they will say 3% per month and thus people gets fooled thinking it is 3% per year and thus get into the debt cycle.
