All of us in one way or the other encountered people offering us to have a credit card. We have to remember that the credit card could make or break your financial life and put the other aspects of your life into sudden chaos. If you are smart and cautious in handling it well, then it will bring you a lot of benefits yet, if you are just happy go lucky about it, then it could ruin your life and even bring misery to your family members.
This short list of guidelines will aid you to understand on how you will utilize your credit card so that it will work not for your disadvantage but for your own welfare and benefits:
Advantages of having a credit card:
A credit card can basically do the following:
1. Be very safe from thieves and convenient to carry than cold cash.
2. Give you convenient options regarding payment method on the things you want to buy via the internet or your telephone.
3. Make you establish a credit history that is excellent
4. Provide you with free use of funds for as long as you always pay your account balances on time and in full.
5. Let you enjoy with rewards, incentives and other freebies.
Disadvantages of having a credit card:
1. If you won’t pay on time, it will cost you the most compared to other forms of credit such as line credit or personal loan.
2. It will give you more headaches because it will build more than enough debt which you can bear.
3. Destroy your credit record if your payments are delayed.
4. The terms and conditions are quite unclear or difficult to understand.
5. There are hidden charges.
The most basic and primary advantage of having a credit card is that, it will bring convenience to your financial transactions and buying affairs, but the inadvertent and delayed payments will cause you a lot of headaches and can leave you a lot of debts which is beyond your paying capacity.