What are the disadvantages of a credit card?

  • Monthly Scrutiny – Credit card statements require regular monitoring to avoid errors, fraudulent charges, or unauthorized transactions.
  • Hidden costs – Some credit cards may have hidden fees, such as annual fees, late payment charges, or foreign transaction fees, which can add to your expenses.
  • Easy to be overused – Credit cards can lead to overspending and accumulating debt if not used responsibly, tempting users with easy access to credit.
  • Minimum due – Paying only the minimum amount due can lead to a debt cycle, as high-interest charges may keep accumulating on the remaining balance.