Advantages and Disadvantages of Credit Cards
More and more people have become conscious how great credit card is when it comes to purchasing items or procuring services in the commercial world. In this day and age, you don’t have to carry cash all the time. And with literally millions of establishments the world over which accepts credit card payments from their customers, paying with credit cards has never been easier.
Here are some of its advantages -
1. A credit card can increase your purchasing power because even if you don’t have any cash you can still buy goods which you want and make payment later which in turn increases purchasing power.
2. A credit card can allow you to buy things online. Credit cards are still the payment solutions of choice by most Internet merchants.
3. A credit card is more convenient to carry around compared to cash.
4. A credit card is also a convenient option for frequent travelers. No matter where in the world you are, credit cards would be accepted.
Above were the various advantages of credit cards now lets look some of its disadvantages -
1. Credit cards, due to its feature of paying afterwards can result in spending more than what your budget would allow. This can have disastrous results.
2. Credit cards are prone to security issues, forgery etc… especially when it comes to online transactions. Credit cards are the most vulnerable things when it comes to online transactions.
3. Credit cards impose interest rates and other applicable fees. These results in you paying more for goods then you have paid if you had bought by paying cash.
Credit cards are one of those things that could make your life easier, or could make your life disastrous. It depends on you how you use it, for the betterment of your life or for disastrous life.
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Credit cards got equal advantages & disadvantages….I have almost all the bank cards and recently started canceling one by one
I own a credit card but never use it. I’m prefer debit card than credit card =)
@ Ruchi, Yes it could make your life easier but If you are a CC user and not so much conscious about Identity Theft and Credit Card Hacking! then you will be penalize.
I think it is the major disadvantage of using it. And thank you for share CC Pros $ Cons.
There is not a single advantage to having/ using a credit card unless you want to live as an indentured servant. I save at least 25% of my paycheck EVERY week. I have been doing this for years and I could retire right now if I wished, I am 39 years old. I don’t need a credit card because I have the money to pay for what ever I want. My car is worth 5K, I rent a 1 BR apt and the only bills I have are electric and cable/internet. There is ONLY one path to financial independence, save your money no matter how little you make. Stop wasting income on worthless gadgets, crappy food eating out and useless services like credit cards. People are too consumed with themselves to care about what you do or do not have so who are you trying to impress?