What are some disadvantages of credit cards?

Credit cards can be difficult to manage, and if habitually abused, lead to high levels of debt. • High Interest Rates - Credit card companies charge very high interest rates and fees on all balances carried over from one month to the next. This interest accumulates quickly, making it difficult to pay off the debt. • Annual Fees - Many credit cards come with an annual fee that must be paid in order to maintain the account. These fees can add up, making credit cards more expensive than they initially seem. • Limited Access to Funds - Credit card purchases are limited to the amount of available credit. A customer can only spend and borrow up to the limit of their credit, making it difficult to make large purchases or to borrow money in times of need. • Fraud Risks - As with any transaction involving credit cards, there is a risk of fraud. Credit cards can be stolen or fraudulently used, and customers may not be able to get their money back. • Credit Score Impact - Credit cards may help to improve a customer’s credit score, but it is important to be careful with credit card use. If payments are late or balances hit the credit limit, credit scores may be impacted negatively.