Advantages & Disadvantages Of Credit Cards

Everyone has their own reasons for applying for a credit card, whether they are for the rewards, the protection, or something else, which is probably why around 70% of people have at least one. Because of this, you might have considered applying for one yourself. However, as great as credit cards are, they are, at the end of the day, a tool, and like a hammer or a saw they can be incredibly dangerous if they’re not used properly.

Before you make any big financial decisions and apply for a credit card, read through the advantages and disadvantages below to make sure that it’s for you.


You Will Be Protected

Credit cards offer a lot more protection than debit cards, which is why lots of people use them to make big purchases, even if they can afford to pay for the item themselves. If you buy a product or a service, depending on the price of it, if anything goes wrong, you should be able to get a full refund. This covers you if the item is faulty, doesn’t turn up, or the company goes bust. You can visit to find out more about this.

You Can Make Bigger Purchases

If you need to get something that’s pretty expensive, like a new TV or fridge, then you might not be able to afford to pay for it all in one go, which means that you would have to miss out until you could save up the money. If you had a credit card, you wouldn’t have to wait to buy this expensive item. Instead, you could pay for it with your card in full and then spread the cost over a set amount of time, making payments each month until you paid the total balance.

Depending on your terms and conditions, as long as you pay your bill on time, you shouldn’t occur any interest.


You Could Get Into Debt

It’s important to always know your credit terms and conditions like the back of your hand, as unexpected fees and charges can easily get you into a lot of debt. Websites like help you to compare some of these fees and charges. If you missed one payment, you could incur a lot of interest, which you might not be able to pay, and this could easily snowball, getting you into a lot of debt.

You Could Hurt Your Credit Rating

The missed payment mentioned above will show up on your credit history, which, unfortunately, is going to cause your credit rating some damage. This means that you might not be able to get credit anytime soon, which could affect plans to buy a new house, car, or go on holiday, so it’s important to always make payments on time if you can.

Credit cards can be incredibly useful day to day, but if they’re not used properly, they can do more harm than good. Make sure you properly consider the advantages and disadvantages before you apply for one yourself.

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