Pros and Cons Of Having A Credit Card

Plastic in any form is bad for the environment and living as a whole. While plastic bags pollute the environment and come as a hindrance to the green mantra, plastic money pollutes the livelihood, if used shoddily. The credit card with a magnetic strip allows you to pay for the services availed, by borrowing against your credit line with the credit card company. The very first credit card was introduced by Diners' Club in 1950 to almost 200 people in New York. After almost 60 years since inception, credit cards have become more of a necessity than a luxury in every day living. With lives getting more and more hectic, there isn’t time left to go to the uptown supermarket to buy the new gadget that have stormed the shelves, leave alone going to the ATM to withdraw money and then going to the market. A credit card lets you do that at your own convenience. Buy all the latest stuff over the internet through your credit card, and get them delivered directly to your doorsteps. So, whether it is buying an air-ticket, a movie ticket or a ticket for the rock concert in town, forget the queue! Just go online and book those tickets with your credit card. Though credit cards have made transactions simpler for us, you just cannot swish away the drawbacks. Outlined below are some pros and cons of having a credit card.

Advantages Of Credit Card

The best part of having a credit card is that you don’t have to carry cash along with you, all the time, which probably saves you from the snags of theft. One small plastic card is all that you need to have to stream through your expenses.
Given the fact that the pace of life is getting more and more tedious, credit card allows you to relax and unwind in the comforts of your home, without worrying much about shopping. Credit card allows you to shop online. So, just with a click of a mouse and typing of some numbers, you can get all that you need, sitting at home.
A credit card offers you with a lot of flexibility and saves time too. At any time of the day, when you feel like shopping but do not have enough cash, you don’t have to rush to the ATM to withdraw money. All that you need to do is just swipe your card and get going.
With a credit card you can easily keep track of your spending. Additionally, since the credit card transactions are traceable, you can track it, if it is ever stolen.
Credit cards are most beneficial in time of emergencies like accidents or unexpected bills etc., when you don’t have much cash with you.
Many credit card companies offer additional benefits like cash back offers, discount packages, loyalty points and rewards. Plus, you can have an increase in your credit limit if you have a good credit history.

Disadvantages Of Credit Card

A credit card gives you remarkable buying power, and it may lead to a lot of unnecessary spending. People tend to forget that they are spending their future money and sometimes even spend more as compared to people without credit cards.
After all the spending, if you do not pay the incurred credit in time, it could damage your credit rating and reduce credit limit for future transactions.
Online transactions are prone to security breach. While you are shopping online, every time you key in you credit card details, there is the risk of your credit card details being hacked and simultaneous misuse of your card as well.
Credit card companies impose a high rate of interest on late payment of outstanding dues. So, if the payment keeps rolling over months, it would create a huge financial burden.
Though credit cards do provide you with ease and flexibility, taking the wider scenario into consideration, you actually end up paying more than the actual price of a product or service, due to the interest and taxes that have to be paid along with actual cost.

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