The Advantages and Disadvantages of Owning Credit Cards

credit card stack

credit card stackThe easiest way to borrow money is through credit card but before applying for one you have to know important facts about owning one. I have known people who were greatly indebted to it. Why? Because they don’t have self control. An employee can apply for one if you have a good credit history which means you are out of bankruptcy and no delinquent accounts. If you are a frequent traveler, ask them first if the credit card you are applying for is accepted in many places or in other countries. Ask for the annual fees, credit limits, interest rates and penalties once you will not be able to pay all your balance at the end of the month. It is fun to own a credit card and it makes your life easier but you also have to consider the disadvantages that it brings to your life.

Advantages of Using a Credit Card

Purchase power and ease purchase is one of the advantages of having a credit card. It makes your purchase easily and you don’t have to carry big amounts in your pocket. They also give you purchase protection. The credit card statement and the company may prove that you have bought such items incase of lost receipt or damage purchase. When you use your card you have to update your payments monthly to established good credit standings. Then the company will increase your credit limit and lots of same company will offer you more credit cards.

It is also very useful in emergencies like fortuitous events such as fire, floods, storms, car maintenance hospitalization etc. In these situation you can borrow money from credit card easily without the hassles of any interview or investigation other financial institutions are doing before they grant credits to their client.


Since it may seem to be free money the tendency of the card holder is to spend more bringing your budget out of proportion. They encourage the owner to spend money which actually they don’t have yet by offering freebies, bonuses, discounts, insurance airline miles etc. and charge it to your credit card account but you have to remember that they will also charge you huge amount once you fail to update your balance. This is were these companies get their income. They are imposing you hidden charges once payments are not updated. And that makes almost card holder deeply indebted. Fraudulent people can also imitate and charged thousands into your account. All you have to do is to prove that you do not make that purchases and the companies will just charge you small and reasonable amount. It may seem unfair but it is better than charging you the whole amount.

There are pointers you have to consider about owning a credit card. First you have to monitor your purchases. Don’t give informations to anyone but only to those reliable companies. Once lost or stolen or if there are any fraudulent purchases report it immediately, most of these companies has a 24/7customer assistance Pay off all of your credit balances at the end of the month to avoid extra charges. Overall, this card is useful if you know how to use it wisely.