ADVANTAGES AND DISADVANTAGES OF HAVING A CREDIT CARD

ADVANTAGE

  • Ease of use: most establishments accept credit cards regardless of the type of currency. In the case of cash, if you are abroad you would have to change money to the local currency.
  • Registration: everything you buy with your card will be automatically registered on your account statement. If you pay in cash, you have to be extremely organized and write down all your expenses to be able to keep a record as detailed as that of credit cards in the account statements.
  • Benefits per use: the more you use your card and meet your payment responsibilities, the more points or free goods you can earn. But you need to make sure you make timely payments and smart card management to get these benefits.
  • In case of theft or loss, the cards have a contingency or insurance plan that replenishes the amount of credit. Instead, the loss or theft of cash that can affect your finances directly.
  • Durability: This point depends a lot on how organized people are. But generally when you bring cash with you it is usually easier to spend it. That is why it is said that money on credit or debit cards lasts longer.

DISADVANTAGES

  • Misuse: the main problem users face is the misuse of credit cards. They are used to buy non-durable goods or to give themselves a life that they cannot afford (brand shoes, brand clothes, perfumes, etc.). Making payments like the family pantry each week with your credit card is a clear example of misuse. Ideally, the cards should be used to purchase something that you would not normally be able to buy but will save you in the long run.
  • Disorganization: since they are very easy to use and accepted almost everywhere even though you have all the records, you can not organize the punctual payments of the cards and acquire debts much easier than if you had the cash.
  • Money you do not have: At the end of the day you are spending money that you do not have yet. You are signing a promise to pay in the future, if you do not have that money yet, how can you ensure that you will be able to pay?
  • Maintenance: for the simple fact of having a credit card you must pay fees and commissions. One more way out of your money.
  • Denial of access: not everyone can have a credit card, either because their income is not high enough or they do not have a good credit history.

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