what are the advantages and disadvantages of having credit card?

Answer 1

Easy to buy things you don't need and Hard to pay for things you don't need......XXX

Answer 2

One advantage of using a credit card is that you can buy stuff from ebay, one disadvantage of using credit cards is if like instant gratification and have no money, you will immediately want to buy some junk with your card and will have no money to pay for it, then the credit card companies will almost own you. You will pay them and will get nothing in return and if you do not pay they'll phone you 20 times during the day, they'll phone you at night, they'll come at your work, your life will lose the peace factor. RE: What are some advantages and disadvantages of using credit cards? Have you ever had a credit card? If so, plea? What are some advantages and disadvantages of using credit cards? Have you ever had a credit card? If so, please share some of your experiences with them.

Answer 3

By making timely payments your credit score will go up. If your payments are late you are charged around a $29.99 late fee along with your monthly finance charges. Now if you go over the limit you will be charged an over the limit fee which varies from card-to-card. One advantage is if you do not have money in your account you can use your card as a reserve although, that can cause problems. You do not want to become dependent on credit cards and you do not want to get to many of them either. The best thing to do is read the small print before using the credit card.

Answer 4

There are honestly no disadvantages to credit cards. Using a credit card is fast, light, good for emergencies. THe best reason to get credit cards is to get loans from companies. HAveing high credit can give you a better deal.

Answer 5

The first benefit that comes with credit cards is absence of cash. No need to carry wallets stuffed up with cash, carry plastic instead. It is possible to shop with them, buy services, pay for dinner, buy things online or even withdraw cash from banks ATM's. The modern day security methods implemented with credit cards make them one of the most secure methods of carrying financial transaction. Coupled with fraud protection, insurance benefits and various other value adds they offer better service. The reward programs and tie-ups with specialty stores provide lots of savings while you spend with your credit card. Some companies even offer cashback. It means you can get some percentage of cash back when you spend a certain amount with the credit card.

Judicious use of credit card helps in building the credit history of a person. The way you repay your credit card debt, is reflected in your credit report and will help you get good loans at better terms in future.

With all these benefits, credit cards are not without certain drawbacks. These drawbacks do not come by default with any credit card, but improper use of any credit card can cause a lot of financial difficulties. Basically, credit card allows you to pay for things even when you don't have any money. It is a kind of credit which has to be repaid with interest. The credit card issuer gives you this credit limit based on your credit history. So, all the money a person spends with a credit card is basically a loan. Problem occur when the repayment of this loan is delayed, missed, or defaulted. This incurs a penalty, late payment charges, and increased interest rates. Continuous defaults on this front can lead to large volumes of credit card debt, which will can have serious effect on a person's credit history. Some people think that credit cards are good means to withdraw cash from ATM's when needed. This is a very wrong assumption and is the major cause of credit card debt. The credit card companies charge huge interest rates when a person withdraws cash using credit cards. They also charge some penalty for this. Read more from: http://www.credit-card-gallery.com/article/222,Must_know_credit_card_benefits_and_drawbacks

Answer 6

obvious advantages to having them: you can get things on credit, you can build a credit history, there are some things you cant purchase like on tv or the internet without a credit card. the major disadvantage is messing up your credit and if you cant be responsible you could get into major debt.

Answer 7

Credit Cards are convenient BUT dangerous too.

I do not recommend Credit Cards for peoples having problems to handle money. Many peoples are living over their limits with Credit Card. The interest rates for Credit Cards are 'robbery'.

Otherwise pay cash.

Good luck.

Answer 8

Advantages - you can build a credit history so when you want to get a loan for a major purchase (automobile, house, etc.), it will be easier.

Disadvantages - you spend like crazy (and you don't have the funds to cover the charges) and the credit card companies keep on increasing your limits when you don't want them to.

Answer 9

Actually having a credit card is indeed a privilege for future purposes.Credit card is for those whose wise enough to use it.It is indeed convenienct especially if you are a traveler.As for disadvantages,it will give you worries especially if you are a panic buyer,an uncontrollable one without thinking that you are consuming more of what you are earning.And ended to bankcruptcy and sometimes suicides....

Answer 10

advantages are having the money credit whrn you need it. Disadvantage is if you don't pay the entire amount when the bill comes in the interest will be terrible

Answer 11

Advantage- Having money on hand when you need it whether it be for an emergency or for fun.

Disadvantage- Being tempted to overspend because you don't actually see money coming out of your purse. High interest rates. Way too many good sales and too little self restraint.