Sometimes, you intrinsically feel that the goods and services you are purchasing should be paid for using certain system of payment without any hassle of carrying huge cash with you. Most of the shoppers are obsessed with such idea and this is the very obsession that has given birth to credit cards (Aka open-end credit or revolving credit) in the world. Unlike debit cards, they don’t require you have sufficient amount in your bank account to make shopping. This tiny looking plastic card is all about making your shopping and system of payment easy and hassle free without requiring you store huge cash in your account.
Credit cards/ open-end credit with so many benefits in terms of cashless system of payment are also not free from certain demerits too. In other words, there are pros and cons with them thereby prompting cardholders become cautious and careful to understand merit and demerit of such revolving credit. Some of the pros and cons of them are being mentioned in the following lines. Read through them….
Pros
Convenience and coziness are one of the featured attributes/pros with credit or revolving cards. With their use, the cardholder doesn’t have to experience hassle when he/she is to make a payment against the goods and services bought. As compared to debit cards and cheques, credit/ revolving credit allows cardholders to avail short-term financial loan instantly against payment of good and services purchased. However, the users can’t exceed the maximum credit line predetermined by the credit card company.
Other than making your shopping more comfortable and convenient, the credit cards also ensure proper safety from frauds that is prevalent in debit cards. Since your card is password protected, only the cardholder can have access to use it. For this, the user should maintain caution not to show password to other unreliable persons.
Moreover, users can also avail benefits packages and rewards with their cards. Some of them such as free of cost enhanced product warranties and loss or damage coverage on new purchase at no cost. The cardholders also avail points which can be redeemed in return of cash, products or airway tickets.
Cons:
• Too much higher interest rate drives customers into the point of bankruptcy
• Arbitrarily raise on interest rate by the company causes immense dissatisfaction to cardholders
• Variation in grace period sometimes causing failure to timely repayment of cash holding cardholder responsible for paying charge for late payment
• Credit cards are prone to theft/lost subject to cardholder’s mishandling
Therefore, credit or revolving credit has some pros and cons, but as per the cons, most of them refer to cardholder’s requirement and repayment capacity as well as their caution. Hence, careful handling will surely give you the best experience with your card.
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