It’s difficult to imagine an average American without a credit card. Still, when applying for your first card, it’s important to know all the pros and cons.
Pros of credit cards:
- You can use them almost everywhere.
- You can use credit cards to make purchases via phone and the Internet.
- They are good when you need money in an emergency (healthcare expenses).
- Most of the credit cards offer rewards and points for purchasing particular items/goods in particular places.
- They allow paying off for the item in installments during a particular period.
- You can improve your credit score with the help of credit cards.
- Every cardholder can withhold payments.
Cons of credit cards:
- People, who have credit cards, tend to spend more than they earn. It’s very harmful to their credit and budget.
- Some people tend to turn over their balances for several months.
- Most of the companies charge high fees for late payments and other terms violations.
- Irresponsible attitude to credit card use can lead to problems with credit.
- Credit cards frauds are commonplace in the nowadays world (though it’s fair to say that you can get a credit card with a chip today).