Credit card has brought myriad controversies since its very inception in the financial world. Its ownership and usage are similar to a double-edged sword, possessing both positive and negative sides.
That makes a credit card no different from other payment tools or methods, even any other objects in real life. Under an irresponsible use, the credit tool abuse will negative impact your financial life to a significant extent.
That said, the foregoing does not utterly suggest that credit cards have no positive sides. However, saying whether credit cards insinuate more positive or negative impacts comes back to the users. To weigh the influence, here are the pros and cons of credit card ownership.
Also Read: Credit Card Myths Busted
The Pros of Having a Credit Card
The main feature of credit cards, which to allow one to make credits, is highly useful for making an urgent purchase. For example, if you have to afford something yet you do not possess enough cash, you can rely on the tool.
Aside from that, it is also useful to register for certain services or make donations. Some platforms, accordingly, make credit card registration a requisite. Without credit cards, you will not be able to achieve what you want.
To some extent, the system itself is reassuring and rewarding. The providing companies often issue rewards for credit cards use and highly maintain security over lost cards or data.
The Cons of Credit Cards
Credits are highly associated with debts and, in most cases, that does not sound good. Depending on what purchase you make under your credit cards, it will reduce a fixed amount of your income in the following months.
Psychologically speaking, credit cards are risky for irresponsible spenders. With the ‘restricted’ freedom to making purchases, credit cards are prone to abuse.
Pertaining to the security system in which the companies seriously take care of, numerous of thieves surround the business. Accordingly, credit cards are among the financial system that has most frauds. Thus, without full awareness, it is very dangerous to use credit cards.
Also Read: Don’t Use Your Credit Card for These Transactions!
