Thursday, November 21, 2019
Economy

The pros and cons of credit cards

pros and cons of credit cards

Do you need a credit card? Before you get a credit card, it is necessary to consider the pros and cons of credit cards. This article will offer you helpful information.

Pros

There are five points to consider when you get a credit card.

Purchasing power.  Credit cards give you purchasing power worldwide. A credit card offers you a quick payment option when you don’t have money at hand or access to a fast loan. Many credit cards are accepted virtually anywhere.

Rewards. By using a credit card, you can earn money back on your day-to-day purchases. You don’t want to spend unnecessary money just to earn a few rewards miles, but why not make a couple of bucks on purchases you’d make anyway?

Allow you to use them now and pay later. Credit cards let you buy now and pay later. Instead, you can charge it to your credit card and pay the balance over time. Gradual repayment will help keep your checking account intact.

A secure way of carrying money. A plastic credit card allows you to carry your cash around conveniently.

Fraud protection. The credit cards actually have better federal protections against fraud than debit and ATM cards.

Cons

There are four cons to consider when you get a credit card.

  • The interest. One of the most obvious drawbacks of using a credit card is paying back interest.
  • Late fees. Miss a payment and you’ll pay a late fee
  • Ease of spending.
  • Destroy credit. If abused, credit cards can send your credit score into a downward spiral.