What are the pros and cons of a credit card?
Credit card is of biggest craze now days, people tend to consider it as a status symbol commodity. It is said that if you have credit card in your pocket you have the entire world with you. Whatever you want to purchase and whenever you want to do so, the credit cards are there with you. Carrying dollars and pounds in your wallet is no more required. You need is a small credit card which meets all your needs. However, every new innovation has its own merits and demerits. Some of the merits and demerits of the credit cards are listed here:
The pros of credit cards are:
- These cards are small and hence are convenient to carry.
- Credit cards are secured substitute of cash.
- Monetary source during emergency
- Builds up your credit score
- Accepted in US and all over the world
- More like a short-term loan with no interest.
- Cash rebates and promo offers are always available.
- This is a means to purchase items of high cost.
The cons of credit cards are:
- Can be stolen easily
- People tend to use it extravagantly
- You need to pay penalties for late payment of loans
- Personal misuse can result in bad credit.
- Many of the stores do not accept credit cards.
- Monthly bill will have to be paid on time to escape finance charges.
