Advantages & Disadvantages

Credit Card Advantages & Disadvantages

The disadvantages of credit cards are usually a product of irresponsible use on behalf of the cardholder. Most of the problems stem from failure to pay bills on time or being fiscally irresponsible with spending. If used properly, credit cards can be of great benefit. They are great for earning rewards, taking out interest free loans, financing large purchases at low rates, and are also a great alternative to carrying cash. Most importantly, responsible use of credit cards is one of the best ways to build a strong credit history. However, when an individual does not make timely payments or buys things with credit that he or she has no means to pay back, the results can be less than perfect.

Advantages Disadvantages