The Pros and Cons of Credit Cards
The Pros and Cons of Credit Cards

The Pros and Cons of Credit Cards

What are The Pros and Cons of Credit Cards - Almost everyone knows about the Credit card. There are many pros and cons of using a credit card. If you are thinking to getting one, then you must read these points first. It will help you in understanding the benefits and de-merits of credit cards. Hence, it will become easy for you to decide.


The Pros and Cons of Credit Cards

Almost everyone knows about the Credit card. There are many pros and cons of using a credit card. If you are thinking to getting one, then you must read these points first. It will help you in understanding the benefits and de-merits of credit cards. Hence, it will become easy for you to decide.


The Pros of using Credit Card

The Pros ofusing Credit Card
The Pros of using Credit Card

• More Purchasing options: If you’ve cash then you can only do purchases in the offline market. Some major e-commerce websites may let you buy things on cash on delivery. But, most of the online merchants don’t have COD as a payment option. You can use a credit card to do both online and offline payments. It doesn’t matter if you are paying over the phone, internet or directly in person.

• Quicker Checkouts: You can do faster checkouts with the help of credit cards. If you are paying using cash, then you need to count the cash first. If you are paying using a check, then you need to sign the check first. But, with credit cards, all you need to do is swipe your card. Your transaction will get approved in seconds.

• Payment in Installments: One of the best benefits of using a credit card is that you can pay in installments. It is better for you to pay your bills by the month end. But, if you are short on money then you can pay off your bills in the next month. This can decrease your credit score. Hence, it is advisable to pay your bills by the month end.



• The Credit Boost: If you are paying your credit bills on time, then your credit score will improve. This credit score plays a very important role in getting your loan approved. Hence, you can easily get a loan from any bank.

• Funds for Emergency: If you need funds for covering an emergency, then a credit card can surely help you. You can cover your unexpected expense by using your credit card. But, it is not advisable because you need to pay the bill by the month end.

• Earning Rewards: Credit cards give you the ability to earn various rewards like gift cards, merchandise, and cash. You can redeem your credit card points whenever you want. The more you use your CC, then more credit points you will earn. Hence, you will get extra benefits by using your credit card for the purchase.

No loss of funds if anyone does fraud purchases: A thief can easily steal your wallet. Thus, all your money will get stolen easily. Even if a thief got your credit card, he can’t use it for transactions. Every online transaction requires you to enter either OTP or pin. The card issuer does not write this pinon your credit card. Thus, it is almost impossible for anyone to do fraud purchases. You can report to the bank about your lost card. After that, even if someone does the transaction from your card it will automatically get canceled.

• No Cash Carrying: It is difficult to carry hard cash in a wallet. Almost every place in this world accepts credits. Hence, there is no need to carry cash in your wallet. All you need to do is carry your credit card to shops. But, some local shops may not allow you to use your credit card.

• Great Promotional Offers: Most credit card issuers give offers to their new customers. You can get 0% interest on all the purchases you doing using your card. Thus, you can pay your bill over time getting no interest on it. In simple words, you need not pay about any interest on late payments.


The Cons of using Credit Card

The Cons ofusing Credit Card
The Cons of using Credit Card

These were all the benefits of using a credit card. But, before you visit your nearest bank it is important to see the other side of the coin. There are demerits of a credit card which may turn you off.

• Spending more than you have: Credit cards increase your purchasing power and create an illusion you can spend more than you have. Hence, most users end up spending their whole credit limit. If you are paying using cash, then you can’t spend more than you have.

Future Income Hurt: Using a credit card is like borrowing money from the bank. You need to pay this debt by your future income. Hence, your future income will automatically reduce because of credit debts.

• Confusing Credit card terms: Most new users struggle with the terms used with Credit cards. There are many terms like Credit score, credit card agreements, and credit history hard for new users to understand. It is important to understand all these terms before using your new card.

• Costly Interest Charge: If you are not paying your credit bills by the month end, then you are wasting a lot of your money in interests. The interest rate of a credit card can be high. Hence, you will end up paying thousands of dollars more by the year-end.

• Potential Debt: If you are using your credit card, then you are indirectly taking debt from the bank. Be extra careful while using your credit card. Otherwise, credit debt will keep increasing every month.

• Credit score Free Fall from Misusing a Credit card: If you are not using your credit card carefully, then you can ruin your credit score. Without a good credit score, you won’t get any loans. Thus, it is very important to maintain a good credit score.

• Risk of Credit card Fraud: Credit card frauds are increasing every day. Hackers can get your credit card details by hacking merchant details. Hence, you won’t get to know that they have already stolen your credit card details. They can easily use your credit card to commit online transactions.

These were all the negative aspects of using a credit card. But, you can easily control them by using your credit card smartly.

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