Pros And Cons of Credit Cards

Credit cards are a medium of payment which is growing popular in more and more countries around the world. In recent years, there has been an exponential boost in the number of credit card users in countries like India. In my research about the best credit cards in India, I found that most credit card holders are India are worried about paying the debt from credit cards. There are very few who actually enjoy the benefits of a credit card.

While there certainly are some perks of using a credit card, there are some demerits as well. So, what are these pros and cons of credit cards? Read on to find out.

Let’s start with the pros.


1. Convenience

These days nobody likes to carry cash around. Credit cards make it a lot easier to carry out your transactions. In case you lose your credit card, you don’t have to deal with any kind of charges and there will be no expenses on your part. This is something that you don’t get with a debit card.

2. Rewards 

With credit cards, you’re eligible for a host of benefits such as cash backs, airline miles, hotel points and many more. This kind of benefits is not available with debit cards and cash payments.

3. Grace Period

With credit cards, you get 21 days of grace period to pay your credit bills. This means that you get 21 days from the time you receive your credit card bill each month to pay it.

Now let’s look at some of the cons of a credit card.


1. Overspending

Credits cards are like Alladin’s lamp. Often you can end up spending more than you can afford. This can put you into a trap of debt which will make life difficult for you.

2. High fees

Your credit cards can cost you heavily as they come with a high annual fee. If you do not make use of it the right way, you may end up paying more in fees and get very less or no benefit from your credit card.

3. High interest rate

Credit cards can easily put you in debt in a short time. If you fail to repay the debt quickly, your debt amount keeps on rising. The best way to avoid this kind of a situation is to pay your credit card bill before the grace period ends.

These were some of the pros and cons of using a credit card. There are a lot more advantages and disadvantages. However, these are the ones that you need to know initially when you are just starting out.

We really hope you found this post useful and informative. Do you have any queries or suggestions related to this post? If you have any, feel free to leave your thoughts and opinions in the comment section below. I will try and answer all your questions and take your feedback into consideration. Also, let me know if you want to learn about the best credit cards in India. I will be glad to share more insights with you.

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