Advantages & Disadvantages of Credit Cards | Sell Any Mobile
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Advantages & Disadvantages of Credit Cards

Credit card is issued by financial company or bank from which you can borrow funds, these funds can be used to buy any goods. Credit card is fun .you can buy anything at any time whether you afford it or not. It a most convenient way of shopping but by using credit card you can fall in to pool of debt.

According to Business Finance Articles, it’s a best financial tool that you can use anywhere. Credit card have maximum limit so that the cardholder can borrow limited amount. Cardholder had to pay borrowed amount plus the specific interest amount. Cardholder has to pay his credit on monthly basis. If the user does not pay amount on time the company will charge interest on the amount till the payment is outstanding. While purchasing from credit card keep in mind you have to pay back. Credit card bill comes as a monthly bill

Advantages and disadvantages of Credit card


·         With the use of credit card responsibly you can handle emergencies, unplanned expenses or any unexpected cost that arise when you have no cash to pay but you have to pay back every amount you owe

·         If you need to buy something expenses and you cannot pay whole amount at once then credit card is ideal if you use it wisely

·         Like RBS Credit Card Online Services, every bank offer online login & services to manage your account, check statements, pay bills online, activate or stop any supplementary service.

·         If you pay your bill full and on time you will get rewards like cash back, loyalty points or air miles. Otherwise interest will be card more than reward. If you pay your bill before time you will reward interest free days on future purchase as well as discount. Always try to find car

·         While there is a list chance of having cash lost or stolen, a credit card can quickly canceled if you lost your wallet .You can inform bank of your card loss they will deactivate your account so no one can use it. It remain just a piece of plastic


·         Credit card companies charged high rate of interest. If you carry balance from month to month. You’ll have to pay high interest charges. Now a days Interest charges is more than have to pay more than you initially charged in interest.

·         Most credit cards have annual fees. It may cost from $25 to $1200depending on the services and features of credit card. To avoid this annual charges get credit card free from annual fee.

·         Another disadvantage is ,other fees can quickly add up like when you miss a payment, fees if you spend past your credit limit, fees for overseas transactions, balance transfer fees and even some rewards programs fees

·         It may blow out your budget. When you had done huge payment with your card you have to pay it by next month and if you don’t pay it on time you have ti charge high interest on it. This will blow out your monthly budget. So use credit card wise and sensibly.


Tips for First-Time credit card user

1.    Choose your card sensibly: Choose your card sensibly. Read out all the terms conditions and features and services of card you are buying. Not all credit cards are same in terms of features and services. Choose it according to your need.

2.    Charge only if you afford: Charge only for those thing that is affordable to you means you can repay it with in time limit such that no late fees or extra interest will be charges

3.    Pay off your bills monthly: Pay off your bills with regularity-monthly. Only charged your card for those things which you can repay it easily and on time. Otherwise late fees and high interest rate will be charge on your payment.

4.    Dangers of debt: Debt has its own life. It can increase day by day or year after year due to interest and late charges. If you don’t afford a huge amount then don’t charge your card if you don’t pay off the owe amount you payment will increase until the payment is outstanding.

5.     Don’t make minimum payment: when the stage comes in your life that you have a huge amount to repay. Pay is quickly as you can.