the Pros and Cons That You Must Know Before Applying for Credit Cards
The new technology in the banking sector has made the use of credit cards very popular to the American residents. The report about the US members that own credit cards are estimated to be about 189 million. There are some of the factors that you have to put in mind before you make the decision to have a credit card. This is because there are advantages and disadvantages of using the credit cards that you need to know so that you will decide whether it’s good for you or not. In this site we will share with you some of the pros and cons that you should think about before you get a credit card.
Here are the pros of using a credit card.
Using a credit card is easy and fast. When you are using the credit card you don’t have much stress as it’s encountered when paying with cash or check.
With a credit card you can use it for emergency funding. A credit will save you at the faces of emergency hence you can be able to achieve your goals at the moment without having to wait. This happens in case you want to pay for a ticket and you don’t have the cash you can use the credit card to pay your ticket. The most important thing to know is that you can only get the emergency funding so long as you are within your credit bounds.
The credit card will earn you rewards. You have the advantage of many rewards by using the credit cards which includes free shopping, free flight or money refund. However you have to make sure you shop wisely for the credit card you are applying for in case you want to get this benefits.
You improve your credit when using the credit cards. The only way to boost your credit limit is by using the card to pay for all your expenses and be keen not to delay to make the payments.
Some of the issues that you can face when using the credit cards are listed here.
The first con of using the credit card is that you can be tempted to spend more As your credit limit increases you will be attracted to spend money with no limitation. The challenge comes when you get less pay from your account because of your previous credit card expenses.
You can easily damage your credit score status. In case you are not able to pay for your credit card expenses you put yourself in the risk of not qualifying for mortgage services in the future.
The credit card terms and conditions can be confusing. Lack of understanding this helpful post can lead you to make mistakes with the card.
Therefore you should understand this cons and pros of the credit card so that you can decide whether you are able to manage one or you not.