Contents in the Post
Credit Card Advantages and Disadvantages
If you have made any online payment or have a little bit knowledge about online transactions, then you must have heard about the Credit card. But many of us have confusion about the Credit card i.e. What is a Credit card, What is the use of Credit card and what are the Credit card advantages and disadvantages.
So, I tell you in short that the Credit card is a plastic card that looks exactly like your Debit card. But there is a lot of difference in Credit card and Debit card. But we will not discuss this. In this article, we will discuss Credit card Advantages and Disadvantages.
About Credit Card
We will discuss Credit card advantages and disadvantages in this article. Many people have confusion whether they should take credit card or not. So, friends, you don’t worry about that, in this article I will tell you Credit card Advantages and disadvantages so that you can very well decide whether you should take credit card or not.
If you are interested in a Credit card, please do not hesitate to have it. But before taking Credit card you should know its policies. There are many rules and regulations for the Credit cards, which you must know. If you ignore these terms and condition, then your Credit card bill will be so much, that you can not imagine.
You must know its charges and interest rate. One thing I must tell you that Credit card is a very useful thing, but credit card have some terms and condition, which you must know. Below I will tell you Credit card advantages and disadvantages so that you can very well decide, whether to take it or not.
Advantages of Credit Card
Below are the Credit card Advantages and Disadvantages
Easy Payment – One of the most beautiful thing about the credit card is that you can make a payment very easily. You can make a payment in just a second whether it is online or offline payment.
EMI Option – By using a Credit card you can do shopping on EMI. This is the feature of the Credit card which attracts me. If you have a credit card, you can buy anything on EMI and repay it on monthly basis and can complete the EMI. If you want to know What is EMI and how it works, read here.
Cash Back Offers – You get a cashback offer when you make a payment using a Credit card. The credit card gives cash backs of around 5% -10 %, also you get Rewards point and the free shopping voucher.
0% Interest Rate – Many Credit card companies give you credit card on 0%, it means if you use the credit card amount and repays its payment before the due date, the credit card company will not charge any extra amount.
On purchase of anything, Credit card company send you the monthly statement bill. You have to pay the bill before the next month ends. In that one month period, you will not be charged any interest on that amount. If you cross that one month or the due date, you will be charged with interest.
Digital Transaction – The credit card encourages the cashless transaction which is a good thing. You will not carry more cash with you. You can make payment using your Credit card.
Security – Any transaction you are doing from the Credit card, is fully secured. The chances of hacking credit card details are very low. In case any fraud happens with your Credit card, the credit card bank will try its best to bring back your money.
Loan – The money you invest will not be debited from your bank account. This is the money bank gives you as a loan. You can use that amount for your purchase. This loan amount will be repaid using EMI.
Record of Monthly Expense – At the end of the month, a monthly statement will be sent to you. From that, you can estimate your monthly expense.
Disadvantages of Credit Card
Un-necessary Shopping – As we know that the expense you made using the Credit card, does not debit from your bank account. So, the people start using it for un-necessary shopping. And at last, they are not able to repay its payment.
Hidden Charges – There are many hidden charges for the credit card, which we didn’t know. So, sometimes bill came with some extra amount.
Cash Withdrawl – Never use the Credit card for Cash Withdrawl. There are much more extra charges for the cash withdrawal.
Transfer of Amount – Some banks give the option to transfer money from Credit card. But they charge very high for transferring the money, also they add interest to them. So, before transferring the amount from the Credit card, make sure you must know its charges and interest rate.
High-Interest rate – Sometimes if you delay in the repayment of EMI, they charge very high. In some cases, they charge 20% -36% interest rate. So, I request you to pay the bill before the due date.
Types of Passport || Passport Type In India [It’s Amazing]
So, friends, this is all about Credit card and Credit card Advantages and Disadvantages. If you like this post on the topic ” Credit card Advantages and disadvantages” then do share with your friends and family, so that they can make out whether to take Credit card or not.
Also if you have any question regarding Credit card, please write to us. The answer to all your query will be given. You can write your question in the comment section. For more updates, please subscribe to our website.