Pros and cons of using a credit card

Over the last ten years credit card use has become very popular and with this popularity comes pros and cons. We have listed the major issues below:

Pros:

• Credit cards provide free, short-term credit. That is only if the balance is paid in full by the due date
• Credit cards provide a safe, secure and a flexible way to pay for products whether it is on the internet, telephone or in shops
• Credit cards provide protection against fraud
• Credit cards are accepted practically anywhere in the world
• The usage of credit cards can prompt cash back and loyalty bonuses from the card issuer
• Credit card issuers provide purchase protection for products
• By using credit cards and keeping up with payments will give you good credit ratings and maintain good credit history

Cons:

• Interest will be added if you do not pay your balance in full every month.
• Credit limit is to an agreed limit so you may not have access to as much cash as first expected
• High rates are charged when withdrawing cash from ATM machines
• Credit cards can actually make you spend more than you can afford
• Difficulty in understanding the small print with regards to fees and charges