The Pros and Cons of Credit Cards

Credit cards can affect people in different ways whether they be large or small, beneficial or just an inconvenience but it is common place for the majority of the country and beyond to carry that vital “piece of plastic”.

For many getting a credit card from a leading lender is an excuse to have a splurge and spend money they really don’t have but then again, others using it strictly for emergencies only.

The majority of debt in the UK and now other countries (now reaching billions of pounds/dollars) is becoming a mainstream problem which is not improving and with many people despite their background obtaining credit cards without the hassle, the problem is not going to improve any time soon.

Before committing yourself, it is important to look at all the pros and cons and should anything appear too good to be true then on most occasions it is.

Pros of a Credit Card:

• Easy to carry
• Can help build up a decent credit record
• Should an emergency scenario arise then it could be used as a last resort
• Most credit cards are accepted worldwide and in millions of stores
• Can be safer than carrying cash
• A variety of goods can be purchased off the internet which as a whole is becoming more user friendly and safe

Cons of a Credit Card:

• There can be late fees involved with going over an allocated limit or non payments
• High interest rates are the most common of problems with taking on a credit card (especially those with bad credit)
• Credit card fraud is a on-going issue which despite the launch of security measures such as chip and pin, there is no sure fire safeguard against such an eventuality
• It is easy to get into debt should you spend more than you can actually afford

Always remember that when taking on a credit card, it should not be seen as a lifestyle choice but more as a last resort should a real emergency occur. This way, one can stay debt free yet relax in piece of mind that the card is there as and when required.