What are the risks of using a credit card?

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asked Mar 12 in Credit by Zoishe (400 points)
What are the risks of using a credit card?

What risks are associated with the use of a credit card?

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answered Mar 15 by Rexer (1,250 points)
One risk of using a credit card is ruining your credit score and credit rating if you use more money on the credit card than you can pay off.

If you're unable to make your credit card payments on time and keep the balance paid off on the credit card then you'll risk lowering your credit score.

When using a credit card for purchases it's best to only use the amount of money on the credit card that you can pay off the next month in full if possible.

But if not always try to make more than the minimum credit card payment.

Credit cards also carry a risk of someone being able to collect your details from your credit card through skimmers which can gather your credit card details and personal information and can lead to you having to go through a process of getting your identity straightened out in the event someone steals your identity.

Although identity theft is rare it does happen so you should be very careful when using a credit card or even debit card.

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