Credit Cards- Pros/Cons

[Randy]

List the pros and cons of having a credit card.

 

[Kasynlie]

Cons: can be a lot of trouble if you don't track when you use it



Pros: can get you out of a tight spot (temporarily)



That's about all I can think of in my sleep deprived state.

 

[Jazzy]

A benefit to having a credit card is that you can have it on hand in case an emergency arises. As beneficial as it is can be, you must be able to distinguish between a real and a fake emergency. For example, using it to pay for an immediate surgery that your insurance does not fully cover is an emergency; a new purse is not.



Another benefit to having a credit card is that it can help build your credit score. There is a catch, however, because simply having the credit card is not enough. In order for your credit card to work in your favor, you have to make payments on time. How much debt you have accumulated counts as well, so avoid carrying a balance. If used the correct way, your credit card can be a useful tool in helping you obtain a good credit score.



While many people use their credit card responsibly, there are those that are enthralled with instant gratification and purchase items that they cannot afford to buy. Some buy thousands of dollars of products, then get the bill and become overwhelmed because they cannot afford to pay it. Instead of paying off the balance each month, they pay the bare minimum. Even though they make their payments on time, the interest accumulates which forces the balance to increase. Before they know it, they are in over their heads with credit card debt and it becomes a serious problem. Unfortunately, this is a common disadvantage of having a credit card.



An obvious downside to having a credit card is that you put yourself at risk for identity theft. When you buy online or from a store, you are putting your faith in the security measures of the company and the individual employees. All you can do is hope that your information will not end up in the wrong hands. Make sure to shred any personal paperwork that has credit card numbers on it and read your statements carefully. Also, be aware of any companies that you have purchased through that have had security issues, for example, an employee that stole customer’s personal information. In addition, check your credit report once a year without fail.



While having a credit card has both its pros and cons, it is up to you to use it wisely. Contrary to the thoughts of some, owning one is a big responsibility. When used correctly, a credit card can be a quite beneficial item to have in your wallet.



Link: http://www.wisegeek.com/what-are-the-pros-and-cons-of-having-a-credit-card.htm

 

[InMyOpinion]

A pro to having a credit card is that it can help you raise your credit score and it can be used in case you have an emergency.

A con is that most people don't use it how it's supposed to be used (which is to use it but to pay it off RIGHT AWAY or just after receiving your invoice.) and then they will collect a lot of debt through credit cards with high interest rates. People can be playing catch up for many years of their lives if they don't use their credit cards correctly.