A credit card from any other network allows you to pay for purchases or services by borrowing from the credit card company.
Credit card is more then a simple piece of plastic, it is first and foremost a flexible payment tool accepted at 30 million locations worldwide, and if the card balance is paid off every month, then no interest is charged on purchases made so, essentially, short-term credit is granted without the consumer paying any interest.
Like most things, there are advantages and disadvantages to credit cards. Knowing some of these can help you decide if you do or do not want to use credit cards.
ADVANTAGES
If you are away from home without cash, you often can receive a cash advance or have the option of buying traveler’s checks with a credit card.
Purchase products or services whenever and wherever you want, without ready cash and paying for them at a later date
A credit card can be used to purchase anything - practically all establishments worldwide accept them, and they can be used in place of money you may not have or for an unexpected expense that requires immediate payment.
Credit cards are easier to carry than large amount of money in your wallet. You can use them to purchase many things, especially from those companies which hardly accept large amounts of cash.
You can easily acquire a loan if your credit rating is good and also qualify for other credit card offers.
DISADVANTAGES
If not used wisely, credit card debt can really make your finances tailspin and put you into a cycle of debt and despair.
If you lost your credit card anyway and if it went to the wrong hands, it could be a massacre. The person has the credit card could buy objects using you credit card. So you could have to face huge problems.
The temptation to acquire too many credit card accounts can lead to losing track of payment details and deadlines. This can be disastrous.
Some credit cards have conditions that may put you in difficulty if you have not read the fine print.
Tags: Credit cards