I've never had a credit card. What are the advantages and disadvantages?

Answer 1

if you try to invest in property for example and become a homeowner you will not have a high enough credit score. My parents are mortgage brokers and unless you break 650 credit score you aren't even considered. So home owner ship is a big issue. you probably won't be able to buy any sort of major appliance, car, etc.

Answer 2

-Hi Era,
The advantages are convenience, especially for buying things on-line and by phone. They are really useful when you travel so you don't need lots of cash. Great for instant paying of bills. And you can often get loyalty point for products or airline miles. It means you can get things when you want to.

However, it is a 2 edged sword, because credit cards make it just too easy to spend money. And when you get the bill sometimes you get a nasty shock!

Our entire society is getting further and further into credit card debt, and many people just pay the interest off and not the balance. which makes the purchases very expensive.
So if you are able to control your spending and pay off each bill - great!

If you can't do this, then be very very careful!
One of the biggest traps is to keep getting a bigger spending limit, and then other credit card companies offer you another card. They transfer your balance over for a lower interest rate. Then you have another card and an opportunity to spend even more!

Good luck with whatever you decide!
Janet Ellershaw
Internet Marketer & Author
http://www.prosperitytrend.com

Answer 3

The advantages are that it reduces the amount of cash that you need to carry and you can buy things right away instead of saving up for them.

The disadvantages are that you can quickly get into deep debt, you have to pay interest so everything ends up costing more, you end up buying things that you don't really need because it is so easy, and if someone steals your identity it can really mess up your financial stability.

They do have a purpose, but just be very careful and pay off any balance every month or two.

Answer 4

Credit cards are good for emergency. Plus it will establish a future credit rating for any major purchases. Disadvantages are you will rely on credit purchases to often and not paying off the balance.

Answer 5

The advantages, building credit. Disadvantages trouble, troubled. What ever you do, "Don't do it" unless that's the only way for you to build your credit.

Answer 6

Advantages....convenience, use in emergencies, rewards, air miles, and helps build credit.

Not really any disadvantages, unless you're careless and get in to debt way over your heard....so don't do that!