Credit card pros and cons

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Credit card pros and cons

Credit card pros and cons

The content is accurate at the time of publication and is subject to change.

Credit cards can be both boon and bane in today's financial situation. If used well, credit cards can really provide loads of advantages and help in dealing with emergency financial needs. If used carelessly it can have consequences that are hard to deal with. Coping up with credit card problem is a challenge in itself, therefore using the credit cards wisely is very important.

Advantages of using credit cards:

Credit card holders can make use of the many advantages that credit cards offer, if they know how to manage the credit and take care of the bills. Some of the most important advantages are listed below:

  • The biggest advantage of using credit cards is the availability of a credit for any kind of financial need. Every credit card holder will have a set credit limit which can be utilized in full, whenever there is a need.
  • Travelling with credit cards become very easy, since it eliminates the need to carry heavy amounts of cash. Credit cards are convenient and easy to carry, and can be handy to use anywhere in the world.
  • Credit cards are accepted universally. There are places that may not accept checks, but credit cards are always accepted at any kind of store in any corner of the world. Having a credit card gives the advantage of spending power anywhere, anytime.
  • Credit card companies offer attractive reward schemes to their customers whenever they use credit card for their purchases. Cash back options, air mile reward schemes and many such reward schemes give back some profit to card holders for spending with credit cards.

Disadvantages of credit cards:

Although there are many advantages, there are some disadvantages too, which cannot be ignored when using the credit cards.

  • Using credit cards will always expose the card holder to the risk of debt. When the outstanding balance of credit card cannot be paid, it can accumulate into large debts which are difficult to handle.
  • Credit card companies charge high interest rates for outstanding balance which is not paid on time, which means that the card holder will pay more than what was purchased with the card.
  • There are security risks like identity thefts and credit card thefts, which may lead to unnecessary complications and unwanted procedures.
  • Credit card reward schemes and the general concept of credit availability encourages overspending, which may lead to bills that cannot be paid. Account holders must be very careful of controlling overspending when using the credit cards.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related Research:

Top 5 Secured Credit Cards: September 2020 – Experts’ Choice

Top 5 Secured Credit Cards: September 2020 – Experts’ Choice

Posted: June 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Top 5 Soft Pull Credit Cards: September 2020 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… Continue reading

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Top 5 Store Credit Cards: September 2020 – Experts’ Choice

Posted: May 30, 2020

We evaluated store credit cards offered by our partners to find the best store credit cards. They are often loaded with perks that will allow you to save on purchases at your favorite retailer. Plus, many store credit cards are available… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!