Some people like using credit cards due to its convenience. Others prefer to pay with cash so they can see where their money goes. While paying with cash may certainly be a wise choice, having a credit card may also provide more for your purchases. If you’re planning to get a credit card, you may consider the following pros and cons.
Pros
1. Purchasing Options
Credit cards provide additional options for purchases. You can use them for transactions online, through the phone, or those that require a personal touch.
2. More Convenient to Use
Among all payment options, using credit cards certainly, provide a faster and more convenient way to pay for transactions. All it takes is a swipe and you’re all set.
3. Rewards
Through purchases and transactions made using your credit card, most banks offer rewards such as earning you points for every transaction. You can exchange your points for exclusive discounts and freebies for these points. Some credits even offer miles you can use to book travel destinations around the world.
4.Installments
Wanting to buy a new TV but can’t afford to pay for it with cash? Use your credit card. Credit cards provide you with the ability to pay for purchases over time in smaller amounts. Now you can have that TV you’ve always wanted.
5. Emergencies
No matter how much we prepare for everything, emergencies can happen. And we can never prepare for an emergency. You might get laid off at work. Or a medical emergency has just occurred. A credit card can come in handy during those times.
Cons
1. Fees and interest
Credit card fees may be too much to handle for some, especially if they always pay their balances late. This is exactly why much thought must be put in selecting a credit card to select the kind of interest rate one is willing to pay.
2. Debts
Stacking up credit card purchases may also mean accumulating debts if left unpaid.
3. Tempted to Spend
That laptop on the window looks really good, huh? And it’s on sale? Oh I know, I’ll use my credit card. Even though I don’t really need it right now.
After learning about the different pros and cons of using a credit card, an informed decision can be made. And hopefully, you’re going to be a more responsible credit card holder.