Pros and cons of owning a credit card

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Pros and cons of owning a credit card

Pros and cons of owning a credit card

Add to Favorites:

Having the money spending power is always enjoyable. Credit cards give that power and is a must have in today's credit driven economy. It gives the convenience of not carrying cash and checkbook to every place. It also has better security than carrying around checkbooks and money, which makes it desirable. If used well, it helps manage the money better, and helps deal with financial emergencies. Owning a credit card has its own advantages and disadvantages.

Advantages of using a credit card:

  • Credit cards are the best way to build a good credit history. Using the credit card wisely and paying all the bills on time and in full helps get a good credit score and good credit history.
  • Since credit cards are very widely accepted, it can be used anywhere and anytime. It is a safer option to carry instead of checks and cash, and can be secured with pin numbers and passwords.
  • If credit cards are stolen, it can be reported to credit union and the card will instantaneously be cancelled. This safeguards the money and decreases the risk of thefts.
  • Credit cards can be used to withdraw cash too, so it can really help deal with financial emergencies.
  • It is a better option when on travel, because of its acceptance rate in any part of the world. It also can be used to obtain the local currency from the ATMs without any hassle.
  • Credit cards offer good reward programs for customers using them. Free air miles, free hotel stays, cash back rewards, departmental store discounts, and gas rewards are some of the benefits of using a credit cards. Customers who use their cards regularly and have a clean record of paying bills on time can make a lot of profit using these reward schemes.

Disadvantages of using credit cards:

  • Credit cards charge exorbitant interest rates and if any bill is not paid in full, or missed or even delayed in payment, it can snowball into huge outstanding balance.
  • If the user does not understand the credit system, then it is easy to accumulate debts.
  • Credit card companies charge a variety of fees and service charges, if the card has to be used at ATMs, or there is a delay in bill payment or any other small thing.
  • Also, a good credit card with reward schemes may cost an annual fee, which is like paying for the rewards earned.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How To Choose The Best Credit Card For Everyday Spending

How To Choose The Best Credit Card For Everyday Spending

Posted: June 21, 2017

When you reach for your wallet to pay for groceries, gas, dinner out, or any other everyday purchase, are you searching for cash, a debit card, or a credit card? Many people hesitate to charge this type of everyday spending to a credit ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading