Advantages and Disadvantages of Having A Credit Card

Owning a credit card can empower you but only if you use it wisely. There are many times in life that we might prefer to use a credit card instead of cash when purchasing items. However before you decide to get a credit card it might be wise to comprehend the advantages and disadvantages of using them as a method of payment.

Owning a credit card can truly empowering for a lot of people. There is nothing like the ease of just pulling out your credit card and using it to pay for things.  It certainly spares you carrying around a big wad of cash in your pocket. However if you are a compulsive spender owning a credit card may not be such a great idea.  It is just too easy to go overboard on your spending.  The best candidates for ownership of a credit card are those who know how to organize and stick to a budget.

The Advantages of Owning A Credit Card

There are also many advantages to owning a credit card. One of them is not having to carry around cash or go to the bank all of the time. Yet another advantage is not having to worry about losing your money or having it stolen. If a credit card is stolen it is generally very easy to replace it.

One of the best things about owning a credit card is that it makes life much easier if you want to open a PayPal account or order goods off of the internet. In fact you can’t start many online businesses nowadays without a credit card.

There are many benefits to using a credit card including special discounts, earning bonus miles and other perks.  However the biggest benefit is being able to “buy now and pay later.” This means that you can buy absolutely anything that you like as long as it is within the range of your credit limit. You can accumulate a debt with a plan in your head about how it might be paid off over a series of months. This is very convenient if you do not carry a lot of money in hand but are confident that you can pay for it in a couple of weeks.

The Disadvantages of Owning A Credit Card

However, having a credit card does have its own set of disadvantages. Often people are issued credit cards that allow them to incur more debt than they actually make. This is a good way to get into trouble with debt!

The freedom to splurge is also not so beneficial for people who are not responsible by nature. It is all too easy to give into an impulse and treat the card like a source of cash. It is important to realize that it is really a source of debt. Make sure that whatever you are spending money on in the future can be paid for in the long run and you don’t run into any unnecessary debt troubles.

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