Advantages of Credit Cards
Instant Access to Cash
The biggest advantage of using a credit card is, of course, the ability it provides to instantly access cash when you don’t have it with you and you need to make a cash payment at a certain place. It doesn’t matter whether you have cash in your bank account or not, the card will provide you cash on credit that can be repaid later on.
Grab the Opportunity
If you have a credit card, you also have the assurance that you are not going to miss out on any opportunity related to purchasing. It is not uncommon to find yourself in a place, where you think, “If only I had the money, I wouldn’t have let this opportunity go.” Well with a credit card you don’t have to. A credit card allows you to make the purchase right away and repay at the end of the month without incurring any charges or over a period of months at which you will be charged interest.
Credit cards work differently than loans. You do borrow money to make the payment for something for which you don’t have available cash, but if you make the repayment within the designated period, then you won’t have to pay interest on the amount borrowed. However, this is only true when you make the purchase directly with the card and don’t withdraw cash.
Safer to Use
Most people also prefer the use of credit cards because then they don’t have to carry a whole lot of cash when they are outside their home. In case it gets stolen or lost, you won’t lose your money and transactions can be instantly stopped on it.
Disadvantages of Credit Cards
Potential of Heavy Debt
It is very easy to misuse a credit card or not keep account of all transactions. In such a case, your debt can rise heavily toppling your credit report severely and pushing you to the brink of bankruptcy.
You don’t Always Get Interest-Free.