Credit Card is a form of unsecured plastic money, which can be used similarly as cash for the purchases you make. It is estimated that credit cards are accepted at around 30 million centres around the world, and this is the reason, which makes credit cards so important and popular.
There are advantages and disadvantages to the use of credit cards. Some useful benefits of credit card includes:
- Credit card offers liberated use of funds and if you pay your credit card bill on time, companies do not even charge interests.
- Credit cards are easy to carry as compared to cash and quoted earlier it is accepted at most of the locations.
- Credit cards provided instant and anytime payment to the purchases made and therefore make you the services or good available instantly.
- Mode of payment to the spending by credit card is simple as it involves online payments or by making use of check making it secure and free of frauds.
- If you are in a good credit history for the use of credit cards, you are also rewarded with the reward points, incentives and attractive gifts.
With so many advantages of credit card, it also has harmful effects if not used wisely.
- Credit card deteriorates your spending habit, as you do not have to pay bills immediately.
- If you miss your bill payments, you are charged with interest rates and these interest rates are calculated on compound interest basis.
- Credit card makes your debt build up higher than you can handle.
You can choose to have a credit card, however it is advisable to limit the use of credit card to minimum and also conduct a through research, understand all the terms and conditions before buying a credit card.
Tags: credit card, Credit Cards, credit limit, Finance
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