Brampton Auto Pawn Loans – The Cons Of Using Credit Cards - Instant Loans Canada

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Brampton Auto Pawn Loans – The Cons Of Using Credit Cards

Dec 21, 2013

More and more people are in the habit of using credit cards rather than their cash. Credit cards lure us into thinking lesser hassle and stress but in reality, they offer more problems than solutions.  In fact, there are several disadvantages of credit cards that would motivate you to stop using them altogether. Below are some of these disadvantages.

  • The interest rates of credit cards are extremely high. Though in the beginning the interest rate is small, it compounds higher the longer you fail to pay your credit card balance. This compounding interest rate can go outside your control leaving you with overwhelming debts. Unless you are sure that you can inject discipline from day one while using a credit card, it is smart and safe to never use it at all.
  • While credit cards can help you establish a credit history, it can also put your credit score at risk. When you don’t manage your credit card debts properly, your credit score will be affected. And when your credit rating is poor, your opportunities for access to larger loans and better jobs will become lesser. Think about this consequence before you sign up an application for a credit card.
  • Credit cards promote impulse shopping. At the start, credit cards were used to buy items which the borrower knows he or she will be able to repay later on. But this changed. Nowadays, credit cards lead people to overspending and impulse shopping. Most of the credit card holders no longer worry about their capacity to pay their credit card debt in the future but instead they prioritize on what is here and now. In fact, unpaid credit card debt is the main reason why many of the Canadians have filed for bankruptcy.
  • Credit cards come with hidden fees. Because most of the credit card applicants don’t read the fine print, credit card companies take advantage of them by charging anything they could possibly do from delayed payment to exceeding credit card limit. And credit card users have no other option but to pay these unexpected charges in order to avoid negative impacts on their credit scores.

Ultimately, it is really your choice whether to start using a credit card or not. Most of these disadvantages are very stressful considering that credit cards only let you borrow a limited amount of cash. If you really need cash and don’t want to go through the cons of using a credit card, you might want to consider Brampton auto pawn loans. Brampton auto pawn loans offer you instant cash solution amounting to $25,000 depending on the value of your vehicle. What is good about these loans is that the disadvantages associated with Brampton auto pawn loans are comparatively lesser than that with credit cards.