Credit Card - Pro and Cons

In this modern era, the use of credit cards has developed into such a certain degree that credit cards have become a life style as a means of payment. However, the advantages and disadvantages of having cards have long become an endless debate.

Credit cards have many advantages as a means of payment. The most practical benefit of this magical plastic card is that the cardholders don't need to carry cash. The card is useful especially when suddenly you have to do some shopping and you don't have enough money with you. With credit cards, you can pay for things in an emergency without having to wait for your end-of-months paycheck. Your card even enables you to get cash in advance from an authorized bank or from an ATM.

Yet, with all its benefits, having a credit card involves some risks, for example the cardholder's tendency to spend more money than he or she should, or can afford to. Who isn't lured by the 'buy-now-pay-later' concept? Actually, when you use a credit card, you buy things on credit, which means that you have to pay interest. And like all other bank loans, your debts will swiftly add up when you fail to make the regular monthly payments. Another risk of using credit cards is being overcharged.

Needless to say, credit cards give great conveniences on shoppers. On the other hand, using credit cards is a terrible trap to those who cannot control their spendthrift habits.