Credit cards have become an essential life tool. They can be used to make purchases you don’t have the cash for. Or to purchase something from a remote seller without having to wait for a physical check to be delivered. So here this article gives the pros and cons of credit cards to better understand this topic.
Pros of Credit card:
- May earn rewards
- Can help you build credit if you are careful about the way you use the card.
- Protection against unauthorized charges.
- Enables you to have cash at home.
- Let’s track your spending.
- It is more secure than cash.
- They are a great way to build credit.
- Improved financial literacy.
- Access to an emergency fund.
- Plastic money is convenient and safer than carrying cash.
- You can purchase not and pay later.
- Free service like credit store and purchase protection.
- Easier to pay bills electronically.
Cons of credit cards:
- Access to credit could lead to debt and spending beyond your means.
- Typically need to pay interest if you hold a balance month to month.
- The FIne print can be confusing.
- High investment rate.
- Late fees if you forget a day.
- Potential form harm to your credit score.
- Spending too much on your card or missing a payment can negatively affect your credit scores.
- Applying for too many credit cards can damage your credit.
- High cost of borrowing.
- Balance due can get away from you and you will owe interest.
Thank you for reading this article. If you have any queries regarding our article on the pros and cons of Credit cards then do comment in the comment section below.
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