Credit cards are ubiquitous in today’s society. According to a recent Federal Reserve study, there were 176.8 million credit cardholders in the US in 2008 and the average cardholder has 3.5 credit cards, which are staggering numbers. Obviously, these millions of people are finding that there are numerous advantages to having a credit card. In this article, we will be discussing the pros and cons of credit cards. The following are some are the pros of having a credit card.
CONVENIENCE
In the modern fast-paced society, speed and convenience have become a way of life. Most everybody is in a hurry and we want to spend as little time as possible doing our tasks. People tend to get irritated when someone in front of them is taking an inordinate amount of time to complete their transaction. Therefore, convenience is one of the major pros of having a credit card. With credit cards, you can just swipe your card and be done. Long gone are the days of having to stand in line and count out money or write a check, now, transactions take but a moment. When weighing the pros and cons of credit cards, this is something to take into account.
Another convenience of having credit cards is that with these cards, you can purchase items or services online. Rather than having to write out a check, mail it to the vendor, wait for it to arrive, and then, wait for the vendor to cash the check to make sure payment clears; you can complete the transaction by simply using a credit card. The purchaser will get the merchandise or service much quicker and the seller is assured immediate payment.
TRACKING EXPENSES
Credit card pros and cons need to be calculated online services and before applying for a card, one should figure out what the difference between each card is. One of the greatest conveniences of having a credit card is that you can track expenses that you have accumulated and you will be able to watch your account to make sure it is not being stolen.
It can be difficult for individuals and families to keep track of where they are spending their money, especially if they are using cash for a large number of purchases. However, if you charge your credit card, you will receive a concise monthly statement that shows exactly who you paid what for. It also will show you how much was spent. Many credit card companies will offer year-end statements which summarize the entire year and break down the expenses by categories. Online services can track credit card uses so that individuals can monitor their expenses and stay within their budget.
EMERGENCIES
A great advantage is that, in case of an emergency, a credit card can cover that. Unexpected auto repairs, medical bills, natural disaster damage, or other financial crises may arise where individuals may not have the cash upfront. Credit cards can be utilized to cover these unexpected costs which will help the person not have to resort to begging family or neighbors or taking out extremely high-interest loans from payday lenders.
BUILDING A CREDIT HISTORY
Another advantage of having a credit card is that it allows individuals to start building credit histories. By utilizing credit and paying off the account, it will show that a cardholder is more likely to be trustworthy than one who has never had a credit account. Whether you want to apply for larger loans in the future, such as mortgage or auto loans or if you want to apply for a job or to rent a house or apartment, a positive credit history can make the difference for you.
INSURANCE
Credit cards offer protection for buyers. If an acquisition made on a credit card ends up being lost, damaged, stolen, or defective, many card companies will allow the purchaser to dispute the charge. The credit company becomes the mediator and will investigate the claim. If it is found to be true, the purchaser will not be held liable for the charges that were made. Also, sometimes, credit cards offer insurance on big items, such as airline tickets, car rentals, and other purchases.
