A credit card is a boon to all the people. But if not handed carefully it can be a havoc and ultimately become a liability. It is a plastic card that is considered as the most acceptable payment tool worldwide.
Advantages of Using Credit Cards:
1) First of all it is definitely more convenient and you feel safe. One really cant carry cumbersome amount of cash.
2) It is a convenient from of payment method for making purchases over internet and shopping online. One can purchase good and services both offline and online.
3) One also gets incentives such as various reward points that are redeemable.
4) One can access it 24/7
5) It allows the customers to spend even when the cash is not available. Money can be borrowed free of interest before a repayment.
6) One also does not have to carry the receipts and details of the purchase as all the information of the goods, payment, warranty is stored.
On the flip side Disadvantages of Using Credit Cards are:
1) It costs more compared to the other forms of money such as personal loan or a line of credit if payments are late.
2) There are lot of unnecessary and complicated terms and conditions
3) One ends up building more debt that cant be handled.
4) The excessive use of credit card will leave you with a debt if someone is unable to manage the finances.
5) You will also have to pay interest on the purchases made when the interest free period expires.
6) The interest charged is quite a lot compared to the other loan products.
7) Also, if the credit card goes out of your possession it can be a huge loss if it is misused and you fail to inform the respective financial institute. Moreover, credit card are more vulnerable to frauds.
Thus, Every good thing can be a boon too. One should use the credit card sensibly and wisely. Use it in a right manner.
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