This article discusses the pros and cons of Credit Cards. A lot of people enjoy using credit cards while others do not. Whether you like to use a credit card or not, you have your reasons. Before you decide to use credit card or not, consider the pros and cons of credit cards.pros and cons of credit cards

The Pros of Credit Cards

  • A Variety of Ways to Make Purchases: With credit cards, you can make purchases online and carry out all your transactions even from the comfort of your home.
  • You Go Cash: With your credit card, you do not need to carry money at all. Even when you want to make large purchases. Remember that some places do not accept credit card payments.
  • Faster to Use: Again,  credit cards are much faster to use. You can easily swipe your card and you’re done in seconds.
  • Building Good Credit: When you use your credit card responsibly, you build a good credit score that you can use to qualify for a mortgage or auto loan.
  • Funding Emergencies: It is not ideal to use a credit card to fund an emergency. However, it can help you cover an unexpected expense if you can’t afford to pay it from savings.

Other Pros of Credit Cards

  • It Helps You Earn Rewards; The rewards can be used for cash, gift cards, miles, or other merchandise. The more you use your credit card, the more rewards you earn. You can redeem your rewards for whatever you want.
  • Interest Promotions: Some cards come with 0% interest on purchases and balance transfers for an introductory period of at least six months. With this, you can pay off your balance over time without incurring an extra cost.
  • The Right to Withhold Payment for Billing Errors: If you give evidence of your claim in writing, you don’t have to pay for that purchase unless after, the credit card issuer’s investigation turns against your favor.
  • Install mental Payments: You can pay off your balance over a period of time. It is only charge cards that demand you to pay in full to keep your card in good standing.

The Cons of  Cards

  • The tendency to Overspend: With Credit cards in your hands, you tend to buy at impulse. However, do not forget that you have to pay for all your purchases. Studies have shown that people are more willing to spend with credit cards than other forms of payment. Spend wisely.
  • Expensive Fees and Interest Rates: Some credit can cost hundreds of dollars over the course of a year. This is the case of very high annual fees, interest rates, and foreign transaction fees.
  • The tendency for Credit Card Fraud: Sometimes thieves hack the store where you shop to steal your card details and use it to make fraudulent purchases. (Ensure that you report the charges right away.)
  • Misuse Can Lead to Bad Credit Score: When you overspend, do not pay your fees on time and your interests, you will incur bad credit.
  • Reduction of Future Income; By using credit cards, a portion of your future income will be used to pay your debts.
  • Confusing Terms: A person who’s not used to reading credit card agreements can easily be confused by the phrasing and the jargon. Some also find it difficult understanding the terms. Understanding credit card terms is important to use the credit card in a way that doesn’t put you at risk of fees.

Make judicious use of your credit cards.