In the 20th century Credit Cards were introduced. In 1950 it is introduced by the Diner’s Club. After 10 year almost an American company “American Express” decide to make its own credit card for travelling and purpose of entertainment but there are many advantages and disadvantages of credit card.
Advantages and Disadvantages of Credit Card
Advantages of Credit Card
- Safer and Efficient:
Most of the people consider the credit card is unsafe and hard to handle but it is not true. Credit card is small in size due to which you can put it in your wallet and it does not take much space in your wallet. Without having physical cash, you can purchase anything. If your card has stolen then you can cancel you card and get back your money in new card but on stolen your physical cash you cannot get back. On loss of your card you just need to call your bank and then in seconds your card will be frozen.
- Get Charge Back Immediately:
In sitting your home, you can get you chargeback. If your product is not good then you can request fr charge back. From online retailers, you can also get charge back which means that all the purchase you make through card are safe. As you can get charge back so credit card can also use for receiving too.
- Shop Online Anywhere:
You can use credit cards to purchase product online from millions of shops. You can also use debit card for this purpose but in many country few banks only give this facility in debt card. Through credit card you can purchase anything online from all over the world.
- Emergency Credit Benefit
If you are out of cash and you need cash in your credit card then you can request to your bank for borrow cash through credit card which you have to pay later.
Disadvantages of Credit Card
Beneficial features of credit card are not free. It comes with fee which commonly known as interest. If you want to pay the fee in the instalment then keep it in mind that you will have to pay the interest rate on monthly bases on the accumulated payable amount. If you not pay then it increases annually and at 1 stage you will not be able to repay the accumulated amount and you will get you in trouble.
- Hacking Chances:
If we compare credit card with cash then it will be safer as compare to physical cash. But in case of online security it will be not safer. To hack the personal information of someone there is the easiest method which name is Phishing. Form the website if you want to purchase any product there are chance of hacking of your card.for purchasing anything you must check that site has https instead of http.
- Annual Charges:
Credit card have annual fee. You must to pay annual fee to keep your credit card alive. Fee amount depend on the type of the credit card you own. If your card have more features then you have to pay more fee annually.
- Ruins your Statements:
Repaying the loan on time is necessary for users otherwise you have issues in future when you apply for loan. Because late repayment of credit card are recorded on your bank statement.