Advantages of a Credit Card – If used wisely a credit card have many advantages. With a credit card you can borrow money for purchase without carrying money at the time of sale.
The best advantage of having a credit card is it gives you the ability to pay for an item in monthly installments. You can increase your buying power by obtaining an item for more than you might have planned.
With financing anything causes a risk. Make sure you read the terms and conditions to the credit card you are applying for. Always keep your payments disciplined and on time. You never want to be in a situation where you paid double for an item you could of paid in full.
With any credit or loan offer disadvantages interest rates, late fees, and over paying for purchases are some of them. Always remember to pay off your balances every month and never skip a payment. If you do you will end up with bad credit.
A great downfall or disadvantage of owning a credit card is that having one just encourages people to spend money that they particularly do not have. Another disadvantage is high interest rates. People tend to borrow more than they can actually afford which eventually ends up putting them in credit card debt.