Credit Cards – Pros and cons of using a credit card

June 29, 2021 | By admin | Filed in: Blog.

A credit card can be beneficial to your lifestyle, but it can also be a burden if not used properly, especially if you find it so convenient and easy to use that you lose control of your expenditures.

This quick article will show you how to use your credit card so that it works for you rather than against you.


A credit card can be used to:

1. Be easier to transport than cash

2. Provide free access to funds as long as you pay your balance in full and on time.

3. Provide you with redeemable incentives, such as reward points.

4. Assist you in establishing a positive credit history

5. Provide a convenient method of payment for purchases made over the phone and on the internet.


Credit cards, on the other hand, can:

1. Permit you to accumulate more debt than you can manage

2. Include a long list of terms and conditions

3. Negative impact on your credit rating if payments are late;

4.If you don’t pay on time, it will cost you much more than other forms of credit, such as a line of credit or a personal loan

What is the difference between a credit card and a debit card?

A credit card is more than just a piece of plastic; it’s a versatile payment tool accepted at 30 million establishments globally, and if the card balance is paid off every month, no interest is imposed on transactions, thereby granting short-term credit without the user paying interest.

It has a number of features, including:

1. Access to unsecured credit (no collateral required against amounts charged)
1. Payment is interest-free from the time of purchase to the end of the billing period.

2. Purchases can be paid for instantly, allowing for immediate delivery of goods and services.

3. All-day, all-night access
4. Anti-fraud measures

However, before you decide to use your credit card, examine all of the variables against your particular requirements and principles.

What about the management of credit cards?
Few of us are born with the ability to manage money and credit cards wisely. It is, however, a skill that may be taught quickly. Budgeting is a good place to start.

How can you define of a budget?

It’s essentially an organized manner of managing your finances; in other words, it shows you where your money comes from, when it comes in, and how it’s spent. A budget should be adaptable to your changing circumstances.

What is the purpose of a budget?

Budgeting aids us in achieving short-term financial goals such as paying our monthly bills on time; it also aids us in achieving longer-term financial goals such as purchasing a home, a car, paying for an education, a wedding, or a vacation. You might feel more confident about the future when you take charge of your finances.

A budget is essential for financial management. It gives you a “Polaroid picture” of your current financial situation and where you want to go.

Having a Total Control of your credit card

Use a credit card with a low or no annual fee to avoid the annual fee that some corporations demand.

Charge only what you can pay off in full when the statement arrives on your credit card.

If you believe that you must pay off your entire balance at the end of each month, you may not use your credit card as much.

Searching for a card with a lower interest rate is an excellent approach to assist reduce the amount you pay on your credit card. At least one of these sorts of cards is currently available from many financial institutions.

When you accept a cash advance on your credit card, keep in mind that interest begins accruing immediately, not on the due date of your credit card statement.

Also bear in mind that if you only pay the bare minimum each month, you may never be able to get out of debt.

The major benefit of using a credit card is convenience, but if you aren’t excellent at budgeting and managing your money, excessive usage of credit cards might leave you with a difficult-to-pay-off debt.

Tags: , , , , ,

26 comments on “Credit Cards – Pros and cons of using a credit card

  1. Thanks for your write-up. Another thing is that being photographer will involve not only problems in capturing award-winning photographs and also hardships in getting the best photographic camera suited to your needs and most especially situations in maintaining the grade of your camera. That is very genuine and noticeable for those professional photographers that are directly into capturing the actual nature’s captivating scenes : the mountains, the actual forests, the actual wild or perhaps the seas. Going to these amazing places certainly requires a photographic camera that can meet the wild’s hard surroundings.

  2. I just could not go away your web site prior to suggesting that I really enjoyed the usual info an individual supply to your visitors? Is going to be again continuously to check out new posts.

  3. Woah! I’m really loving the template/theme of this website.
    It’s simple, yet effective. A lot of times it’s challenging to get that “perfect balance”
    between superb usability and visual appearance.
    I must say that you’ve done a fantastic job with this.

    In addition, the blog loads super quick for me on Opera.
    Excellent Blog!

  4. I simply could not go away your site prior to suggesting that I extremely loved the usual info an individual
    supply in your guests? Is going to be back steadily in order to investigate cross-check new posts

  5. Hello There. I discovered your weblog the use of msn.
    That is a very smartly written article. I’ll be sure to bookmark it
    and come back to read extra of your helpful information. Thanks for the post.
    I’ll definitely comeback.

  6. I like the helpful info you provide in your articles. I抣l bookmark your weblog and check again here frequently. I’m quite sure I抣l learn a lot of new stuff right here! Best of luck for the next!

Leave a Reply to Ingrid Youssef Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.