Credit cards have a poor name, but when used safely, they can be a valuable financial method. This article explains the benefits and drawbacks of credit cards or advantages and disadvantages of the credit card to help you better understand the topic.
Pros or Advantages of credit card:
- building credit history
- A quick source of funds in an absolute emergency
- No accrued interest if the bill is paid on time and in full each month
- Consumer protection if fraudulent charges are reported promptly in case the card is stolen or lost
- Most the credit card company will handle disputes for you
- Zero liability as consumers is not responsible for fraudulent charges when reported promptly
- Many credit card companies offer a low introductory interest rate
Cons or Disadvantages of credit card:
- Fee charged for late payment
- While the use of credit card a Negative effect on credit history and credit score in case of improper usage
- Established creditworthiness needed before getting a credit card
- High-interest rate if not paid in full by the due date
- Encouraging impulsive and unnecessary wanted purchases.
- Annual fees for some credit card can become expensive over the years
Thank you for reading this article. If you have any queries regarding our article on the advantages and disadvantages of the credit card then do comment in the comment section below.
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