Getting a Credit Card – Pros and Cons

credit cardIt seems that we are bombarded with credit card offers on a weekly basis, but does this means you should get one? If you’ve never had a piece of plastic before then it can be a hard choice to make, especially if you don’t want to find yourself in debt.

Fortunately, making a decision has just become easier, thanks to the pros and cons below.

Pros:

0% interest offers

If you go to a credit cad comparison website such as CreditCard.info then you’ll see cards being offered with 0% interest.

While this is only for a short amount of time, it’s a still a good deal if you are sensible and don’t go spending all of your credit limit.

Secure way to pay

Worried about paying with your debit card online? You certainly don’t want cyber criminals getting their hands on your details.

Thankfully, the situation is completely different with a credit card, mainly because you are protected by the credit card company if something goes wrong. In other words, you can buy with complete confidence and peace of mind.

Improve credit score

Another pro of getting a credit card is that it helps you to improve your credit score. This only happens if you pay off the balance monthly and keep everything in good standing, so make sure you use it responsibly.

Cons:

Easy to get into debt

Unfortunately, millions of Americans do not use their credit cards responsibly, and this is why they are in the middle of debt crisis.

The general rule to follow is, when you can’t afford to pay it back quickly, don’t borrow it. It’s easy to get into debt when making impulse buying decisions Have some control and be sensible.

Hidden charges

If you just miss one monthly payment then expect to be faced with numerous hidden charges, all of which quickly start to add up.

Also, be very wary when drawing money out of a ATM from your credit card, as many banks will charge you a fee on top of the percentage already taken by the credit card company.

You don’t really need it

There are some people that just don’t really need a credit card, and that’s totally fine. Don’t feel like you must have a credit card because everyone else has got one.

Sometimes, the best way to stay financially free is to avoid any kind of loan or credit card and only pay for things when you have the money.