The Pros and Cons of Using Credit Cards

There is no denying that credit cards have been enjoying greater popularity today than it did years back. While the first credit card was only used in restaurants, credit cards today are widely accepted mode of payment.

In response to the growing demand, credit cards have been enhanced and diversified to meet the needs of each cardholder. True enough, these plastic cards can be beneficial tools in managing finances. In this post, let us discuss the pros and cons of using a credit card and how cardholders, particularly first time credit card owners can make the most out of it.

The Pros

Build solid credit history. The easiest way to build credit history is to apply for a credit card. For those with no credit, a secured card can be an option. Meanwhile, students can apply for a student credit card and those who are under 21 years old, can still get approved with the help of a co-signer.

Convenience and safety. Instead of bringing cash with you all the time, it is much safe and convenient to bring a credit card. In case of theft or loss, you can simply call up your Issuer to protect your account from unauthorized use.

Handy during emergencies. During times of emergencies and budget is tight, a credit card can be the perfect alternative payment. The important thing to remember is to pay back your charges before your due date.

The Cons

The risk of bad credit. Credit cards can be used for building impressive credit history but that would depend on how you manage your account. Unfortunately, many cardholders, especially student credit card owners suffered from bad credit as a result of uncontrolled spending or untimely payments.

You could end up paying more. Another risk to consider is the cost. Your credit card bill can instantly soar because of the additional charges that you may incur. Examples are late penalty, over-the-limit penalty, balance transfer fee, etc. Your $30 purchase can turn out to be $50 because of the extra fees.

The temptation to spend. One of the biggest challenges about owning a credit card is exercising control. This is especially true for those who own more than one credit card in their wallets. IF you can’t fight the urge to spend, you could be in big trouble.

Don’t Let Your Credit Card Control You!

Yes, the benefits as well as the risks about using credit cards will depend on the cardholder. Therefore, take charge and never let your credit card control you! Although you can always charge now and pay later, cardholders must be very cautious about the kind of purchases they make and their capability to make payments.


About the Author:

Suzy Vanstrusen is a credit analyst and a writer on the website She has been providing consumers with tips and wise information about credit repair as well as helping you out more with your bad credit loans.  Copyright © 2010

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