Smart use of credit cards: guidance from a legal expert
Not everyone relies on credit cards constantly, and some keep them in reserve. Yet this approach can carry risks, warned Semyon Yankevich, Deputy Dean of the HSE Law School, in a discussion with socialbites.ca.
“A credit card is a practical financial tool. Its value comes from responsible use, just like any other service offered by financial institutions. If a card is present but not activated, there is essentially no risk. It is simply plastic and does not impose a financial burden on its owner,” the expert noted.
When activation has occurred, it becomes crucial to thoroughly review the terms of use. This information can be checked on the bank’s official site, by calling the bank’s support line, or by visiting a local branch.
“Often a loan agreement means the bank will charge a service fee even if the card remains unused. Additional paid services can be added by default. There are penalties and fines for debt that accrues. And a few months down the line, a person might receive a letter from the bailiff service demanding repayment, which can be a stressful surprise,” Yankevich explained.
In such circumstances, disputing these claims becomes extremely difficult.
“Signing a contract with the bank means accepting the stated terms of the credit card. Legally, it is unlikely that forgetfulness will be a valid defense. Most likely the debt will need to be settled. After that, obtaining a certificate stating that the lender has no outstanding financial claims is essential. And it is important to close the credit card account,” advised the lawyer.
Earlier reporting noted that many credit card holders rarely use their cards, yet the potential for charges remains a real consideration for account holders and financial planners alike.
For individuals in Canada and the United States, the takeaway is clear: know what you sign, stay informed about all fees, and ensure the card is closed if it is no longer needed. The prudent approach reduces the risk of unexpected debt and helps maintain stronger financial security over time.
Experts emphasize budgeting, regular statement reviews, and timely communication with the issuing bank as practical steps to prevent problems. In practice, a well-managed approach to credit cards can support building credit history, facilitating purchases, and providing a safety net for emergencies when used thoughtfully and within personal limits. The key is ongoing awareness and deliberate management rather than passive acceptance of the terms on file. This perspective aligns with the broader aim of responsible personal finance and fair consumer protection in today’s banking environment.
Ultimately, the responsibility lies with the cardholder to stay informed, act promptly when terms change, and maintain records that prove a clean slate when closing accounts. With careful handling, a credit card remains a valuable tool rather than a hidden liability.