Why Are Most People Afraid To Get A Credit Card?

by Violet WillettApril 25, 2024

Credit cards are a handy tool for most Americans. On the other hand, there are many who are hesitant to possess one. What makes people afraid to get a credit card? There are a number of reasons for this, like the financial experts we consulted explain;

Fear of Being Associated With Debt

People are afraid of getting a credit card because they are afraid of being associated with debt. Many of our older generations are very strict when it comes to finances, and as they have taught us, it is best not to have any kind of debt. 

For them, being in debt, even for just a short span of time, means that you are failing to manage your finances properly. Hence, getting and using a credit card is the epitome of having debt, and so they do not want to use one.

Scott Hasting, Co-Founder BetWorthy LLC

Fear of Being Unable to Control Their Spending Urges

People may be afraid of getting a credit card because they are afraid they won't be able to control their urges to continuously purchase things using it. Unfortunately, there are a lot of people who are shopaholics, those who love shopping so much, without thinking of the financial impacts on them anymore. 

These kinds of people may realize their weaknesses and be afraid to get a credit card as it will just open a Pandora's Box of never-ending spending. Having a credit card will only allow them to spend more; hence, not getting one will put their urges under control. 

Craig Miller, Co-Founder Academia Labs LLC 

Not Knowing How Credit Cards Work

The majority of people are afraid to get a credit card because they don't know how it works, or they fear the consequences of getting one.

This is a complex subject. It's good to know that when you pay off your credit card in full, it has no impact on your credit score. But when you don't pay off the entire balance in one go, what happens can be very different for various people depending on where they live and the laws of the country in which they reside.

Here in America, we offer personal bankruptcy protection, but in other countries, you can go to jail for not paying your debt.

Jamie Hickey,  a Certified Financial Planner and Founder of Coffee Semantics

Interest Rates

Credit cards are really useful tools for making a purchase on credit, but the interest that one pays can be fraught with pitfalls. If you don't pay off the entire balance each month, then depending on what kind of interest rate is listed on your card, you're going to end up paying a ton more than expected. 

In light of this issue, it's no wonder that people may be hesitant about getting a credit card. 

Here is a list of reasons Why most people are afraid to get a credit card:

  • You may not be able to pay off your balance in one month.
  • You can be tempted by going into a large amount of credit card debt.
  • If not paid in full, interest charges start to accumulate.
  • You may be tempted to start buying things you don't need.
  • Once you get a credit card, it's difficult to stop using it.

For all of these reasons and more, getting a credit card is probably one of the most frightening things that can happen to an individual. You should probably think about how responsible you are before applying for a credit card.

Danny Marshall has been in the mortgage industry for over 12 years as a mortgage broker; Mortgage Rate Guru.

Fear of The Unknown

Fear of the unknown is the biggest reason people hesitate to own a credit card. Not only is that the response from my friends and family, but when you consider all the financial benefits of credit cards, there simply aren’t many more scenarios that make sense. Becoming educated in how they work and what they offer would surely eliminate most of the hesitation. Within the last year alone, I gained an extra $300 in rewards and improved my credit score, which means better loan term options, all by simply using a credit card.

John-Paul Cody is the Creator of Trends & Tactics

The “What-ifs”...

The what-ifs of credit cards are what make individuals hesitant to get a card. Factors such as overspending, missing due-date payments, and so on are the major reasons individuals choose not to get credit cards. But the greatest reason of all is the lack of proper information on what it exactly means to have a credit card. 

Also, the lack of knowledge on the benefits of using a credit card, such as using it to make an investment, build one’s credit score, to name a few. With the proper information, the advantages of credit cards outweigh their downsides as long as one makes informed decisions.

Carol Tompkins, Business Development Consultant at AccountsPortal

It's Not Ideal For Budgeting

If you're the type of person who wants to be on track when it comes to budgeting as much as possible, credit cards might not be very ideal. Most of the time, credit cards can lead you to much deeper trouble, such as being in debt because of the interests and late fees you have to keep up if you aren't responsible enough. I had first-hand experience with this matter before, which instantly made me regret having a credit card as this is somehow a tool for impulsive buying.

Nicolas Holand, Content Manager GooseSmurfs

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