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: Winter 2019 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Posted: December 17, 2018

Nights are still drawing out, the wind is cold, and the air smells like snow already – the winter is close. Christmas and holiday season are approaching swiftly, and overwhelming gift ideas are swirling chaotically in your mind. Ready or… Continue reading

Credit Card Tips For Holiday Shopping 2018

Credit Card Tips For Holiday Shopping 2018

Posted: December 15, 2018

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

Posted: November 25, 2018

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door… 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!