Question

Do the pluses of using credit cards out-weigh the minuses?

Answer 1

Answer:- credit card pluses are as under

1)0 interest credit cards :if you pay the balance off each month then you can use the limit of your card without any interest on that amount. If you are rigorous about paying bills, then you can use the card company’s money to make bigger purchases immediately and pay for them after an interest-free period. This could be up to 50 days. However, if you know yourself and you probably won’t be able to afford the bill, turning to online loans to pay it, then it may be better to steer clear of these cards.

2) security:-

Having a credit card means carrying around less cash. This makes it a safer option especially if you are travelling. If it lost somewhere then you cancel the card immediately, you are unlikely to lose out.

With this in mind it is always a good idea to keep a separate note of card numbers and the phone number of the card issuer. This way, you have all the information to hand. You can get in touch straight away should your card go missing.

3) building your credit score :- if you use your credit card and pays the amount timely without any delays, your credit scores will be maintained at good score . This will make more chances to take loans or mortgage. Your good credit score indicates that you return the money on time .

4) offers and rewards :-

Credit card companies are always looking for new customers. To that end, they offer rewards and bonuses on some card accounts. Purchases made using one of these reward cards can lead to air mile points and other rewards like cash back or store points.

Frequent travellers often make use of this kind of loyalty scheme. They are rewarded by paying a lot less for holiday or business flights. If you use the card enough, you can even achieve free flights. These are some pretty big advantages of credit cards!

Other extras that are on offer from card companies are:

1. • extended warranties for goods purchased
   • travel insurance
   • complimentary flights
   • passes for executive airline lounges

5)despute over purchase :- the most important pluses of credit card is if you buy something and you paid money by credit card . And you found that the product is faulty then you can ask the card company to request your money back .

So in emergency if you need money but don't have money then you can use your credit card without asking money from anyone else , and you have a profit that you can pay the money after a month and upto due date it will be interest free .

Minuses:- 1) costly:-

The first downside is that unless you pay off the balance every month by the due date, it is going to cost you money in interest charges.

2) interest rates :- the interest rate very from company to company but they are high upto 22% APR so if you don't pay the amount on time there will be high interest applied on the amount you used .

3)  Damage of your credit worthiness:- You can be the most upstanding person in the world who always pays bills on time but having a credit card can change all that. A missed payment, even if it is the fault of a late or lost postal payment can damage your credit history, and this can have an impact if you later want to take out a mortgage or a personal loan.

4) cash widthdrawal charges:- Using a credit card to withdraw cash is more expensive than using it to make purchases as interest rates are higher for this kind of cash advance.

5) fees :-

On your credit card a monthly fees is charged and if you missed the payment then they will add additional fees as faulty.

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