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Credit Cards and its Pros and Cons- Is it for you?

There are pros and cons of a credit card

I am sure everyone is aware of a credit card. It’s a small card issued by the bank that allows the owner to buy goods or services on credit. Everything with so many advantages always comes with some disadvantages too, so there are also certain pros and cons of a credit associated with a credit card. Do you want to know more about it? Do you want to know if it would be suitable for you? If yes then keep on reading!

Pros of having a credit card

1.      Convenience

This is the most basic reason why people choose a credit card over regular money. Using a credit card can be very convenient. You don’t need to carry a lot of money with you, all you need to do is have your credit card on you and you are good to go.

2.      Buying something expensive

A credit card is said to be ideal for people who need to buy something expensive. If you need to buy something and you can’t afford to pay for it in one go, you can use a credit card. A credit card will allow you to spread the cost over a number of months.

3.      Earning points

You can earn points as rewards by spending money through your credit card. The rewards include cash and gifts miles etc.

4.      Great for emergencies

Credit cards are great for emergency situations. They help you cover up the expenses of an emergency, which can be better than the old way of freaking out in emergency situations. You can return the money spent on the emergency situation gradually, which can be very convenient.

5.      Your credit cards can help you improve your credit score

By paying off your credit cards balance, you stand to improve your credit score significantly. When those cards are fully paid; don’t cancel them and don’t use them unnecessarily. If you can’t avoid using them, make sure you pay off the balance as soon as possible.

The more credit you have available compared to what you are using, the better score you are going to have. Here’s the caveat though, running out now to get a bunch of credit cards will not help. However, don’t cancel the cards you have available for now.

You can go to and find out what your credit score is at no fee.


Cons of a credit card

1.      Interest

One of the major drawbacks of a credit card is paying back the interest it comes with. Your interest is calculated using your DPR (Daily Periodic Rate) you can know your DPR by taking your APR and dividing it by the number of days in a year. Some banks divide it by 360 and some by 365. However, you can avoid interest by paying off purchases in full before the grace period ends. You can also apply for a card with a 0% introductory APR to give you time to pay off purchases.

2.      Hidden costs

Another drawback of credit card is that it comes with a lot of hidden costs. In the end, it can result in you wasting a lot of money.

3.      You end up spending more money

Spending money is a temptation which most of us have. Using a credit card is very convenient, so it can make us spend more money. You need to be careful or you can fall into suffocating debt. According to a report published on December 2016, US households now have over $16,000 in credit card debt.


For some people having a credit card would not be the right option. However, if you use it wisely it can be a life changer for you. By making you understand its pros and cons, we have made it easier for you to decide, if a credit card is the right option for you or not.





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