The Pros And Cons Of Using Credit Cards

Today is the plastic money age and almost everyone is using debit and credit cards instead of real money. This however may seem very versatile and safe, but on the other hand, if you use your debit card, you are totally safe.

Then what about those credit card users? It’s not a bad idea too as long as it is used in the right way and for the right purpose.  If you use a credit card wisely you can get cash back returns, reward points etc. but on the contrary if the credit card is used unwisely you will end up only paying heavy interest. Here are a few pros and cons on the use of credit cards.

Pros to begin with

1. Immediate access to cash – the thought that you have a credit card is relieving because urgent bills like buying new tires, tuition fees, doctor’s fees etc. can easily be met without any hassle of borrowing from others.

2. Security is always there with credit cards. As mentioned earlier, cash can be lost and not got back; but if you happen to lose the credit card, you can immediately report its loss and have it blocked so that unauthorized use can be avoided.

3. Keep records – each credit card user gets a monthly itemized bill which will be helpful to maintain an accurate budget with detailed expense incurred.

4. Credit cards are easily accepted than checks in almost all places and this makes it extremely easy to manage finance. At the same time bill payments can be made in a single lump sum thus avoiding unwanted part payments.

5. Credit cards with reward program are very economic and offer you a wide range of cash back options or reward points like free travel tickets etc.

Just a few cons

Besides the fees for usage of credit cards and the interest levied on it, the cons are nil. The interest can be overcome with wise spending and usage of the credit card. Repayment of credit card bills within the given timeframe can help overcome this aspect.

Summing up on the pros and cons of using credit cards, it is safe to use as long as it is used only for emergency purposes or to buy expensive goods. At the same time, the high interest rate should be kept in mind if the bill is not paid in time. This can get the user into a debt trap and you will end up paying more interest than the spent money. Hence, the benefits of using credit cards lie with the user.

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