Is it good to have a credit card? Although 58% of Canadians repay their entire monthly balance, it is difficult to deal with this additional financial management. This sometimes results in a multiplication of credit cards, or even situations of over-indebtedness. So, is not it advisable to have credit cards , or not?

The risks associated with the proliferation of credit cards

Some credit card companies are ready to go out of their way to convince you to take advantage of their services. This ease of access to credit can quickly lead to a growing number of debts to be repaid. Not only can this affect your credit rating if you delay the due maturities of each of your cards, but in addition, multiplying the various accounts could affect the proper management of your debt, because forgetting one of them can to arrive much more easily than we think.

The major problem with such a situation is that it causes defaults , which, in addition to charging you interest, could undermine your credit rating. This could then lead to over-indebtedness. If you want to avoid financial trouble, it is recommended not to have more than 2 cards at a time. In this way, the organization of your finances will be simplified.

Take the risk of over-indebtedness with a credit card

The second problem often encountered when subscribing to a new credit card is, as mentioned above, over-indebtedness. Whether due to poor management of their accounts or underestimation of their expenses, many people find it difficult to repay the minimum balance due on their credit card. The inconvenience caused by over-indebtedness, in addition to the financial difficulty that this may cause, is the risk of being refused certain loan applications in the future, or even more: you could be refused a request for housing if the result of your credit inquiry indicates poor repayment ability. It is therefore important to be cautious with the use of your card (s) and, of course, to always pay your required minimum on time to avoid problems. In addition, repaying money in smaller amounts, but on a regular basis, will allow you to keep a stable situation while restoring your debts.

Own a credit card: often riskier than using a loan

While still useful in many cases, the credit card should not be considered as a line of credit or a loan application; it is more like a direct advance from your bank on your purchases. But be careful: it does not mean that you should avoid them at all costs either, since they can be useful in many cases, for example, when ordering online, where they are needed.