What are the Pros and Cons of Having a Credit Card?
A credit card can be a useful item to have, but it can also be destructive to your life if you are not careful. Owning this little piece of plastic has its pros as well as its cons. How it is used can determine whether or not your financial standing is excellent or whether it less than pristine. A benefit to having a credit card is that you can have it on hand in case an emergency arises. As beneficial as it is can be, you must be able to distinguish between a real and a fake emergency. For example, using it to pay for an immediate surgery that your insurance does not fully cover is an emergency; a new purse is not. Another benefit to having a credit card is that it can help build your credit score. There is a catch, however, because simply having the credit card is not enough. In order for your credit card to work in your favor, you have to make payments on time. How much debt you have accumulated counts as well, so avoid carrying a balance. If used the correct way, your credit card c
Pros: With a credit card, you can borrow money any time you need. The loan you get often is available without interest for nearly a month. Most credit cards give you at least 25 days to pay off your balance before you’re charged interest. Federal and state laws also provide a certain amount of extra protection when you make a purchase with a credit card. It’s possible, if you follow the rules, for a purchase to be deleted from your bill even if the merchant refuses to take it back. Cons: Sometimes, though, a credit card can make buying your favorite things a little too easy. Accumulate large balances on your card and you could wind up becoming a slave to this instrument. You’ll know you’re in this situation when you decide you want to buy a car or a house, or travel or move, but suddenly realize that you’re maxed out in credit card debt and you need to put aside every available penny to pay bills. You also might pay too much for your credit card. Some card issuers charge high interest
The pros are that it makes it convenient to buy things. The cons are that it may make it TOO convenient to buy things. If you pay your credit card bill in full every month when due, you can build your credit rating — and score big time when you really need to borrow money. Good idea: have a credit card with a bank that lets you track credit card purchases on-line — so that you can keep an eye on possible mistakes or fraud.
