Credit Cards Advantages And Disadvantages Credit cards have both advantages and disadvantages. Generally credit cards come in handy in recovering from financial difficulties. However, if the credit card is not used wisely, then the chances of falling into the debt trap increase. In such a situation, if you have credit cards, then it is important to use them properly.
Benefits of credit card
Your credit score also remains very good if the credit card bill is paid on time. In such a situation, there is every possibility that you will get new credit card offers from other banks as well. Please note that a person can use more than one credit card. While taking a credit card, the limit of your credit card is decided according to the source of your salary or income. With the increase in income, the bank also offers the facility to increase your credit limit. However, the bank can reduce its limit if the credit score is bad.
credit card disadvantages
If you do not pay the credit card on time, you can get into trouble. Using more than one credit card can also increase your chances of falling into the debt trap. More than one card means more than one due date. If you once again forget to pay the bill for a card, you will have to pay huge interest. Along with this your credit score will also deteriorate. Sometimes companies hide hidden charges like annual fees or high interest rates from you. In such a situation, before taking a new card, take all the information about it. If you have more than one credit card, many times banks refuse to give you big loans (Home Loan or Auto Loan).
Lost credit card, then do this work
If you lose your credit card due to any reason, then in such a situation your problems can increase. Never make the mistake of taking the loss of a credit card lightly. In case the credit card is lost or stolen, you can block it using the mobile app or by visiting the bank. After blocking the card, you will be issued a new card. If you have changed your address, then make sure to update your address while applying for a new credit card. Do not share card related information with anyone even in case of loss of credit card. Otherwise, the risk of fraud with your credit card increases.
What is the expert’s opinion
Anuj, co-founder of Money Tab, says, “Credit cards can be taken advantage of while shopping if used properly. But if you do not return the money to the bank on time, then it can also cause huge loss. In addition to all this, there is a risk of fraud in credit cards.