Credit Cards Advantages and Disadvantages: Things You Need to Know

Credit Cards advantages and disadvantages

Many of you will surely agree on the fact that in today’s time it is impossible to live a day without credit cards. Especially, after the current cash crunch situation, credit cards are nothing short of God’s Angel, fulfilling your varied wishes. No matter where you go, if you have a credit card, you are sorted. But, my friend, wait a minute! Because what’s coming next will make you a bit disappointed. Well, as they say, every coin has two sides, good and bad. So, as you already know the good part of credit cards. So, what’s bad about them? I am sure you must be wondering, right? If you are a credit card lover, it is important for you to know the disadvantages also so that you can use it wisely. Sorry buddy, but it’s time to face the reality and to know both sides of the coin. So, let’s get some reality check and know credit cards advantages and disadvantages below.

Advantages of using Credit Cards:


One of the biggest advantages that credit cards offer you is actually the convenience. Yes, it gives you the convenience to use it whenever and wherever without even carrying the money. With credit card in hand, you don’t need a wand of money to shop or something. You don’t need to have enough wealth to go for something. You just need to take out a card from your wallet, swipe it and can buy the happiness, isn’t it sounds amazing? 🙂 In fact, in a case with emergency, say medical expenses, this plastic money always come handy to you, giving you a big relief.

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Lucrative Deals, Cashbacks & Rewards are Calling You

Be it online buying, grocery shopping, travelling, dining and so on, the moment you swipe your card for your various needs, you get introduced to a host of deals, cashbacks and rewards. Each time you use your card, unlimited offers knock your door, adding more points in your account. You can use these points and redeem them in the future.

Free Credit for a Limited Period

Credit cards also come with credit free period, wherein my friend you don’t need to pay the interest on your purchases for a particular span of time. Usually, credit card issuers offer 49-51 days of credit free period to the spenders to pay their bills, until this period you don’t need to give the interest to your credit card company. That’s great, what’s say?

Now, after the goodie goodie part its time to know the other side of the coin i.e. the disadvantages. So, here it is…

Disadvantages of using Credit Cards:

High- Interest Rates

Credit cards come with high- interest rates on different types of loans and mortgages. What, don’t you believe so? Well, its absolutely true! The moment you avail a loan on your card or if you are a bit late on repaying your bills/dues, a high- interest rate is waiting for you my friend. In fact, people don’t realize the fact that the interest charged by a credit card company each month is 2-3%, which actually comes out to 24%-36% annually. And, of course it is huge… very huge I would say.

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Debt Traps  

Well, let me tell you guys if you don’t know how to control your spendings and use your card for almost everything, it’s time to stop right there! Yes, you read that right because usually, it happens with people they carry huge debts without even realizing the same. And, at times it becomes so messy or you can say difficult to get out from this trap.If you don’t know how to make a balance, its surely gonna be difficult. So, the choice is yours.

Late Payment Charges & Fee

If you miss a payment say you missed paying for a due by only just a one day, even then your credit card company will apply the late payment charges and fees on your card. In your daily busy lifestyle, you don’t even realize, but your card issuer constantly keeps an eye on your activity and the moment you missed paying for your due, it puts many sorts of charges.
Thus, on a note that now you know the credit cards advantages and disadvantages, its time to wrap up and say goodbye. Feel free to drop your doubts in the comments section.

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