Pros and Cons of having Credit Cards

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We all know that having a credit card is like having a bag of money compressed into one card. You can avoid the hassle of carrying lots of money with you and in the seller’s part, the assurance of the payment from its consumers. Although we see the good side of having credit cards, there are also not-so-good ones. Good and bad will be relayed unto you in this article so that you know the do’s and don’ts with credit cards.


pros and cons of credit card

There are certain advantages that credit cards offer and those are:

  • Immediate access. You can use them practically everywhere, some even overseas depending on the conditions of the bank.
  • It is an extreme threshold for financial back up in any case you are faced with an emergency like sudden job loss, hospital costs, car repairs, etc.
  • When you lose cash, it’s all gone. When you lose a credit card, you can cancel it and have a new one and also, it’s protected because it will prohibit suspicious or unauthorized use.
  • Having a credit card can efficiently increase your buying power because you can buy through the phone, through mail, and even through the internet.
  • There are cards that offer cash back as incentive for card usage.
  • Having one helps you manage your expenses; it helps you track what you’ve purchased or what you used your card in.
  • Credit cards allow you to dispute billing errors and defective merchandise.
  • It gives you the comfortability of bringing only one (1) card to purchase even lots of merchandise.
  • Buying through cards sometimes get you rewards which accumulate each time you use the card for purchase. Say for instance you get a free plane ticket for buying with your credit card for over Php30, 000.

Read Also: How to apply for a credit card


Although we see a lot of good things in credit cards, it is to admit that there are disadvantages to them as well.

  • By having credit cards, you will feel that you can actually spend more than what you just can spend so be careful.
  • Consumers who use credit cards may oversee their spending and may roll over a balance for months, even years.
  • Remember that credit cards are a form of borrowing; you buy now, you pay later and that is probably one of the main disadvantages of having one.
  • Having too much credit cards is not pleasing to the eyes of sellers or lenders.
  • If in any case you fail on credit card payments, you are automatically charged with late fees and interest.

Do not go spending all day when you acquire your credit card. Even though you feel like you have all the money that you need, it is also important to manage it wisely. Be sure to control your expenses by not looking over what you can only afford. Having a credit card does not mean you can buy everything you want, it’s just that you can pay it without carrying too much cash and the security is all yours.

Be sure to check out the post about how you can apply for a credit card to start yours! Remember, you can achieve anything, just don’t oversee things like in spending because it might be the reason of you falling into the pit of large debts.

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