credit card
credit card

Credit card is no stranger to this sophisticated modern era, but before deciding whether to use a credit card and how to use it, you may have to consider the advantages and disadvantages of having a credit card. Although credit cards are useful, credit cards can cause people to get into financial trouble if used irresponsibly and without careful planning. So what are the advantages and disadvantages of using a credit card? :

Credit card advantages and benefits

With a credit card allows people to be able to pay for things without carrying cash either online purchases or direct on the spot.
Credit cards are able to pay for unexpected emergency costs such as electricity, telephone and other payments.
Credit cards also have the advantage of protecting consumers against theft and fraud by not holding them responsible for merchandise purchases or purchases on stolen or damaged cards.

Losses and drawbacks

Having a credit card can sometimes cause people to buy things out of reach. Credit card debt is expensive because it charges monthly interest and creates a cycle in which people reduce their available income due to credit card bills and continue to make charges on the card to maintain their standard of living.

Before using a credit card, one should consider whether they can afford to pay for the item in full when the bill comes. Responsible use of credit builds a good credit history and helps people get future loans, but irresponsible use and without proper planning can destroy one’s finances and credit score.