Pros and Cons of Getting a Credit Card

Pros and Cons of Getting a Credit Card

Deciding to open a credit card can be a tough decision. Credit cards can help you build credit so you can work toward bigger credit purchases such as a car or home but credit cards can also get you into trouble. Here, we list the pros and cons of getting a credit card. 

credit card back pocket

Pros of Credit Cards

  • You Have Purchasing Power

If you don’t have cash on hand to purchase something you need, such as repairs to your car or home, you can use a credit card that you keep on hand for emergencies to get those repairs done. 

  • Some Credit Cards Have Rewards

If you like to travel, you can get a card that has travel rewards. Some cards have cash back for certain types of purchases or even all purchases. You may even earn gift cards or be able to turn in points for merchandise. 

  • You Can Build Your Credit

As stated above, you can build your credit if you use your cards wisely so you can work toward bigger credit purchases such as a car or home. This is great if you have no credit or poor credit. 

  • Most Cards Come with Fraud Protection

If someone steals your card information or identity, you are usually protected and won’t be held liable for the purchases they make. The only time you are held liable is if you have given someone permission to use the card or have authorized an extra cardholder. 

Cons of Credit Cards

  • You Will Be Charged Interest

Nearly every card comes with interest charges unless you have an interest free period at the beginning. However, the interest charges will come. If you are ever late on your payments, the interest will usually go up as well. 

  • There Will Be Late Fees

If you are late, there will also be late fees added to your payment in addition to the higher interest. This can make paying your credit card payment even more difficult if you have already over-extended yourself. 

  • Spending with A Credit Card Can Be Too Easy

When you have a piece of plastic money in your wallet, it can be a little too easy to buy things that aren’t necessary or that you can’t afford. This makes paying them back harder if you don’t have the money to pay for them later on. 

  • Borrowing Too Much Can Destroy Your Credit

If you spend too much and you have too much debt compared to your income, it can destroy your credit instead of helping you to build it up. This also goes for late payments. Just one late payment can do away with years of perfect payments, so it is important to treat credit carefully. 

It is important to carefully consider your options if you are trying to build your credit. Don’t take on more credit than you need even if it offered to you. Make sure not to spend more on your credit cards than you can affordably pay back over time. And make sure that the interest on your credit cards is reasonable even if you have little to no credit or bad credit. There are pros and cons to taking out credit through credit cards but using them responsibly can help you in the long run. 

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