Pros & Cons of Credit Cards

Credit cards have become quite popular over the last few years. Credits cards can be defined as a form of "money" that provides the user with the capacity to buy goods and services as well as access borrowed funds. We cannot deny the fact that there are many benefits associated with credit cards. Credit cards have grown rapidly. Some of the reasons/advantages that have lead to the increased popularity of credit cards include:

• Buy now pay later policies - credit cards give the user the power to purchase goods and services and pay on a later date.

• Universal acceptance of credit cards - Credit cards is now acceptable in many business enterprises all over the globe. This means that the card is not restricted to any geographical location.

• Use of credit cards for emergency cases - There are situations where one does not have cash at hand to cater for emergency cases such as an emergency medical situation. Credit cards provide the solution since they can be accepted as a form of payment when there is an emergency.

• Protection against faulty goods and services - Unlike cash payments, credit card payments are insured against any faulty goods or services. This means that there is a money back guarantee in case the user purchases faulty merchandise. This aspect is referred to as limited liability.

• Cards are safe since they require an access code or a pin code to use - Carrying a lot of money is very risky. Gone are the days where one was required to carry a load of money everywhere whenever they intended to make any purchase. Credit cards allow you to buy expensive goods and services without having any cash at hand.

• International, online and telephone payments - Credit cards have made it possible to purchase goods and services on the Internet.

However, very few people are aware of the shortcomings of using credit cards. It is, therefore, critical for everyone to know the pros and the cons of using credit cards. Ignorance should never be used as an excuse. Some of the potential risks of using credit cards include:

• Consumers have a tendency of misusing credit cards since they are easily available.

• Credit cars commit one's future income - whenever you use a credit card, it means that you are spending money that you have not earned.

• Allow you to build up more debts and can hurt your credit score.

Please go to the main page if you are looking for a way to improve credit rating quickly.