4 Advantages and Disadvantages of Having a Credit Card
Some individuals that own a credit card have described it as not being able to breathe financially again, which is quite scary, given that money plays a very important role in your wellbeing.
It’s not a superficial factor in life, but rather something that is needed to survive. How much you need, to survive is entirely up to your lifestyle and needs.
When you’re either not educated and can’t find a job or educated but can’t seem to break into a market that pays well, you’re stuck, or perhaps you don’t know how to manage money well, you might be one of the millions to turn towards credit. In more specific terms, you might be relying on your credit card more than is needed.
Credit cards may have many benefits, such as paying for something you might need, or even a medical bill and college tuition, but it has a way of turning into something bad in one’s life, that could cause you to continue a cycle of not earning more than you’re spending.
Visa and MasterCard are two companies that will be able to provide you with credit cards as a method of payment. You can apply for a credit card with some of the best tariffs and compare those you apply for, to seek out the best option for you.
The advantages of applying for a credit card
- The ability to make purchases on your smartphone or online.
- It allows you to make purchases and pay them off in installments.
- It enables you to keep track of your expenses and monitor your expenditure.
- It allows you to qualify for a loan, which can be obtained if you’ve successfully paid off your credit card debt.
The disadvantages of applying for a credit card
- You can’t stick to a monthly budget.
- Having multiple credit cards or accounts, along with a credit card, could affect potential money lenders.
- Credit card fraud can occur, especially if you’re using your card on non-trustworthy sites.
- Credit card contracts will bind you and leave you with a responsibility to pay off debt for years, which might make you feel hopeless, and keep you from moving on from debt.