Not having a credit carte could arrive harder to attain a skilful credit score, but in that place are sometimes really skilful reasons non to instruct a credit carte or to at to the lowest degree set it off for about other time.
Nigeria is experiencing an unprecedented fast-paced increment across practically all sectors of the economic scheme too the banking sector is non left out of this growth. Nigerian banks at nowadays permit y'all to opened upwardly a banking enterprise concern human relationship online inward minutes, transfer funds too brand payments on desktop too mobile platforms too y'all tin flame access cash whatever fourth dimension alongside ATMs that operate 24/7.
A credit carte is but a payment carte linked to a revolving concern human relationship alongside a business of credit from which y'all tin flame borrow coin to brand purchases based on your hope to repay the issuer. In essence, a credit carte allows y'all to store at nowadays fifty-fifty if y'all don't guide maintain the coin too and hence pay later.
However, earlier nosotros get dancing inward the streets because our banks are at nowadays offering us credit cards, nosotros should halt too inquire ourselves if nosotros actually require the almighty credit card. This slice seeks to explore 3 reasons why y'all don't actually require a credit card.
10 Good Reasons why y'all don't require a Credit Card
1.) You Think You May Overspend
People alongside bad spending habits set themselves at guide chances of serious fiscal problem past times getting a credit card. Studies guide maintain shown that people pass to a greater extent than alongside credit than alongside cash. If y'all already know y'all guide maintain a style to become overboard alongside spending, it’s wiser to concur off on getting a credit carte rather than instruct into debt troubles.
2.) Credit Cards Limit Your Ability to Make Money
The kickoff argue y'all don't require a credit carte (from a personal finance perspective) is that credit cards guide maintain the powerfulness to severely boundary your powerfulness to brand coin too attain wealth. When y'all desire to purchase a product/service too y'all are brusk on cash, y'all encephalon volition naturally become into productive manner to figure out a way to brand to a greater extent than coin to embrace the potential expense.However, when y'all guide maintain a credit card, y'all volition non permit your encephalon to become through the procedure of generating ideas for making to a greater extent than money; rather, you'll exactly whip out the credit carte too pass the coin y'all don't guide maintain to purchase the things y'all in all likelihood don't need. Hence, y'all should locomote warned that your powerfulness to retrieve creatively too to brand to a greater extent than coin mightiness disappear when y'all guide maintain a credit card.
3.) You Don’t Have Enough Income to Pay off a Credit Card Balance
If y'all alone locomote seasonally, part-time, or non at all, y'all may non guide maintain plenty coin to pay a credit carte balance. Getting a credit carte without plenty coin to pay the neb tin flame Pb to debt troubles too damaged credit.
4.) The Interest Charged is Somewhat Exorbitant
The role of a credit carte effectively agency that y'all are borrowing coin from an issuer to offset the terms of your purchase. However, banks are inward the concern of making coin too they volition accuse an involvement for whatever coin they lend y'all straight inward cash or indirectly through a credit card.I don't guide maintain an number alongside the fact that banks accuse an involvement inward their credit cards, but I am non comfortable alongside the fact that banks typically accuse total involvement on the entire outstanding residuum if y'all missy a repayment.
The credit cards available inward Nigeria commonly guide maintain a 30-day billing cycle inward which y'all must pay the residuum on the credit carte spent each month. Hence, if your credit carte has a boundary of N50,000 too y'all brand a N10,000 purchase, y'all volition locomote required to repay the N10,000 inside the billing cycle. If y'all repay the residuum during the billing cycle, y'all volition non locomote charged an involvement too you'll alone locomote obligated to pay the regular administration too commitment fees.
5.) Nigerian Credit Cards Lack REAL Credit
The 3rd argue I retrieve that y'all may desire to retrieve twice earlier obtaining a credit carte inward Nigeria is that the so-called credit cards commonly require that the banking enterprise concur downwards at to the lowest degree the equivalent of your credit boundary inward an concern human relationship alongside them. For instance, First Bank requires that y'all pay 125% of your credit boundary into a domiciliary concern human relationship alongside the bank.Hence, y'all volition practically require to set the equivalent of your credit boundary upwardly equally collateral alongside the banking enterprise earlier they number y'all a "credit" carte too I discovery it hard to sympathise how that qualifies equally a credit card.
6.) You Don’t Understand Credit Cards Enough Yet
When y'all guide maintain no sense alongside credit cards, y'all tin flame easily assume that using a credit carte is a cinch. There’s a lot to a greater extent than than that to using a credit carte correctly than swiping it for purchases. Thankfully, there’s a ton of information on the cyberspace that tin flame suspension downwards how credit cards locomote too how to role them wisely. Once y'all sympathise how credit cards work, you’re inward a amend seat to instruct a credit carte too role it responsibly.7.) You Can Barely Afford the Bills You Have Now
If y'all brand plenty coin to qualify for a credit card, but y'all already guide maintain also many bills, adding a credit carte to your electrical current obligations isn’t a corking idea. Work on eliminating about of your bills too reducing your spending earlier y'all add together a credit carte into the mix.8.)You’re Not Financially Disciplined
It takes a lot of self-control too self-discipline to role credit cards the right way. Without these skills, y'all tin flame easily pass yourself into thousands of dollars inward debt too ruin your credit history inward the process. If y'all know y'all may non locomote able to command yourself alongside a credit card, making the determination non to guide maintain a credit carte is the best affair for your fiscal future.9.) You Don’t Want to Pay Interest on Your Purchases
There is a way to role credit without paying involvement – past times paying your residuum inward total each month. It takes a lot of self-discipline non alone to pay off your entire residuum calendar month after calendar month but also to ensure that y'all occur your spending at a marking y'all tin flame pay off. Plus, fifty-fifty if y'all intend to pay your residuum inward total each month, there’s ever a guide chances that something prevents y'all from doing that. If y'all never guide maintain a credit card, y'all never run that risk.10.) Living Without a Credit Card
Surviving without a credit carte at a fourth dimension when electronic payments are taking over tin flame locomote difficult, but in that place are about alternatives. You tin flame role a debit card, which is tied to your checking account, inward virtually every transaction where you’d otherwise role a credit card. Influenza A virus subtype H5N1 prepaid debit card, like to a debit carte but without a checking account, is about other option, but beware of high fees.Renting a auto or reserving a hotel tin flame locomote to a greater extent than hard alongside debit too prepaid cards. You may guide maintain to pay a higher safety deposit or render additional documentation. Check alongside the merchant prior to your reservation to discovery out what’s required based on your payment method.
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