Pros and Cons of Using Credit Cards

Credit cards are payment cards issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder’s promise to the card issuer to pay them the amount and other charges involved.

They have a limit and they are used both in domestic and foreign currencies. They have regular charges and are used for a certain grace of period.

Pros and Cons of Using Credit Cards

Pros of Using Credit Cards

  1. They are convenient

Credit cards are convenient to use in that they allow the user to pay for large sums of money without necessarily carrying the money in cash hence user avoids the risks of being robbed of the money.

  1. Record keeping

While using credit cards, they can help the user track his or her records of expenses and the information will assist the user to make his or her budget.

  1. They pay over a long period of time

Credit cards are usually given a period of time to be used hence they allow the user to renew them when the grace period is over.

  1. Low-cost loans

People can use credit cards to get loans and their interest rates are usually low hence they allow the users to save.

  1. Instant cash

When using credit cards, it is not easy for the amount of money to delay. It normally offers instant cash to the users hence they are able to use the money in the cards when they need it.

  1. Purchase protection

In case of a dispute, the company is normally ready to handle the situation for the users hence they do not incur problems when they use the cards to purchase for the goods they need.

Cons of Using Credit Cards

  1. Damage

In case the card is damaged then the user cannot use it to purchase for the commodity unless he or she replaces it with a new one.

  1. Paying high rates of interest

When the user postpones the month-to-month balances they will pay high-interest charges which will make the user spend a lot of money on the use of cards.

  1. The user pays annual fees

There is some amount that is put on the cards annually. The user will only be able to use the card when he or she pays the annual fees on the card.

  1. Other fees can quickly add up

The users of credit cards are accrued to other charges that may add up on the use of the card hence becoming very expensive on the side of the user.

  1. Credit card fraud

There can fraud on the use of the cards when the user frequently uses it. There is a possibility of someone copying the pin number of the user and may end up using the card without the owner’s awareness hence it is easy for someone to steal from one another.


Credit cards are mostly used in developed countries and they are very convenient as they make the users not carry large sums of money from place to place hence they reduce the risk of theft.

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