The Goods and Bads of Using Credit Cards

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If you are still confused about whether to get a credit card for yourself, here are some advantages and disadvantages. Credit cards have so many pros, especially if you know how to use them without causing any additional expenses and losses on your budget. Here are some popular pros and cons of using credit cards. Check them out!
The Pros
Fast and Quick Transactions
Unlike cash transactions, where you need to be sure about having sufficient funds available, credit cards help in making quick transaction. You like something, take out your credit card and purchase it immediately. These types of fast transactions are not possible through cash purchases.
It’s The Only Choice Sometimes
More and more things now can be purchased only through credit card transaction. The whole world of online shopping works using these cards and you will be missing out on so much if you don’t have one! So, why not keep one for these kinds of transactions?
Protection of Amount
This is the most significant reason for buying a credit card. Carrying cash introduces to all sorts of threats, be it robbery or losing your money. This is perhaps the most common reason for using a credit card.
Even if your credit card is used for fraudulent activities, you will still be secure as it is insured, and any amount is lost can be easily recovered. However, you should take measures to protect your credit card as well.
Click here to see how to avoid credit card frauds
The Extra Perks
Most credit cards offer extremely profitable deals that can help you in earning some extra points on each transaction. Apart from this, there are many ways they reward the loyal customers such as cash back, air miles, extra coupons and much more.
Building a Positive Credit History
If you regularly pay your credit on time and do not miss deadlines of repayment, you can actually build a positive credit history through your credit card. When borrowing a loan from bank or lending money from any other financial institution, your credit history will be scrutinized and if you have used your credit card sensibly, you can actually build a positive credit history.
The Cons
However, just like everything, credit cards also come with some pros you should be aware of. Here are some of the drawbacks of using a credit card.
You Might End Up Spending More
Credit cards were largely created to seduce you into buying more stuff. Not just facilitate your purchases better, but to lure you into impulsive buying. This is due to the psychological impact of shopping with a credit card vs shopping via cash. Numerous researchers studying consumer behavior and marketing psychology have studied the difference between shopping via credit cards vs cash on consumer’s mind. It is much harder and painful to pay the same amount in cash as compared to swiping the credit card when you are carrying out any given transaction.
Accumulated Interest Expense
If you miss deadlines of repaying your loans, you will be paying extra interest loan payment. The interest might be seen low on each transaction & therefore you might be tempted to carry out the transactions regardless. However, the accumulated interest can be very detrimental to your financial situation.
Like everything, credit cards also depend on how you use them. If you meet your sensibly and spend within your limits, you will be able to get more advantages than drawbacks on your credit cards.