Pros and cons of owning a credit card

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 » Pros and cons of owning a credit card

Pros and cons of owning a credit card

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

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.

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

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... 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!