Lists of the Credit Card Advantages & Disadvantages
CREDIT CARD ADVANTAGES & DISADVANTAGES – Here are the lists of the pros and cons in having a credit card.
Undeniably, one of the cards that a lot of people are having now is a credit card. Aside from those who are holders of it already, many are aspiring to apply for one soon.
Credit cards are usually offered by banks. In the Philippines, most banks are offering different types of credit cards or mastercards. There are those that serve a general purpose while some are best for specific purposes like travel.
A credit card bears a lot of beneficial purposes. However, it can also be a disadvantage if not used properly. There are just things that we have to ponder on to avoid being buried to debt.
Based on an article on 360 Degrees of Financial Literacy, here are the lists of credit card advantages and disadvantages:
CREDIT CARD ADVANTAGES
- Convenience – You can go for convenient cashless shopping as long as you have your card with you.
- Tracking Records – With a credit card, you can keep a record of your purchases and the things you are paying for. You may request for a monthly statement.
- Cash Advance Feature – Some credit cards offer cash advance features. You can use it when you need money for a certain purchase or payment.
- Installment Payment – With a credit card, you can pay for a product in full, bring it home, and just pay in installment basis to the bank.
- Perks and Privileges – Holders of credit cards are entitled to perks and privileges which are mostly availed in stores.
CREDIT CARD DISADVANTAGES
- Fees – Most credit card accounts come with fees whether you are using the card or not. It may appear small but it is a different expenses from the interest charged on your purchases.
- Temptation – Knowing you have a credit card with you, temptations not to buy something you really like will be hard to overcome based on the article. If you don’t know how to control your purchases, you can have huge debts in no time.
- Monthly Payments – Your monthly amortization will also mean a monthly deduction on your budget. You may fall short on your budget and then use the card again with another interest being charged on you.