Are you looking to know about credit card advantages and disadvantages? If yes then you came to the article.

In this article you get to know advantages and disadvantages of credit cards. This article is written after referring to more than 11 articles related to this topic.


Many people actually feel that if you are using a credit card, it means that you don’t have enough money. But please remember that in fact Credit Card companies will offer you credit cards if they feel that you are rich enough. They will issue you credit cards only and only when they feel that you have the ability to repay the credit cards bills.

Even Billionaires also get a credit card even when they don’t need it, because there’s some secrets about credit cards that can help them to get rich. Secret advantage of these credit cards can help you buy a house. Before taking the Credit Card you need to research about your credit cards, annual fees, interest rates, hidden charges, credit benefits, and read the terms and conditions carefully. The job of an agent is just to sell you a credit card. It’s your job to find out whether the credit card is useful for you or not. This article will help you understand how to use credit cards wisely.

You all know what a debit card is, right? It’s a card that deducts money from your bank account every time you use it. But using a credit card is like taking a quick loan from a bank and you have to repay back this money to the bank within a billing cycle, which is usually for 50 days. These 50 days are your interest free period. Does it mean you can spend crores using a credit card on your first day. Not really, your credit limit, that is, how much can you spend using your credit card is decided by the bank based on your income level, credit score. So basically, credit cards give people money that they don’t have.


If you have money in your bank account, then why should you use the credit card? Some people’s ego gets hurt that they have money. They don’t need someone else’s money to do shopping, right? So the best answer is that.

Here are top six reasons why credit cards are great.


Credit Cards charging you so much interest, surely they must be offering something in return first. Depending upon the credit card you opt for, you can get benefits like reward points every time you fill petrol book, air tickets, movie tickets, hotel rooms. No cost. EMI offers cash back, offers complimentary lounge access.In the airport, which we frequently use for international flights, priority airport check-ins, and in some cases insurance cover for travels. Using these cards is very easy and convenient to use.


Credit Cards are universally accepted. Debit cards might not work everywhere but credit cards works everywhere. They also work across multiple websites, whether you want to buy an online course or set up a recurrent transaction at Netflix.


These days we seem to make a transaction at some new website every month. The good news is Reserve Bank of India has shifted the responsibility of proof of customer liability to the bank, which means if you don’t get your order, you can ask the credit card company to raise a dispute against the transaction. This is called chargeback, and it protects you from fraudulent transactions. But read the terms and conditions of your credit card carefully to ensure that they do offer the chargeback benefit.


Credit Cards helps to build your credit score. Credit rating or credit score is a very important number and one of the ways of building it is to get a credit card, use it to spend small amounts and repay it back immediately. This repaying all time over the years is what will build your credit score and when you have a good credit score. You can get a good premium for insurances, you can negotiate the interest rate on your credit cards, but most importantly, you’ll get a better interest rate on your loan for your education, starting a business, or to get your dream house. In short, a good credit score is equal to a happy life because it. To help you with your education, with your business, and even your house.


The amount you are spending you will get a reward point. From reward points you can purchase items on e commerce stores.


You will have a 50 days credit period. You will get time more time to use your own money.

Five Disadvantages of Using A Credit Card:


Credit cards promote impulse buying every website you go to.. It’s not wrong to buy, but when we are not in a good place mentally just to get a quick satisfaction we buy something which we don’t need it. This kind of impulse buying is pushed further when you have a credit card because with the credit card now you can pay later.  So if you already have these emotional issues to resolve first, then credit cards might not be your friend.


Credit Cards put you in a lot of debt. Interest rate of home loan is around 8%, car loan is around 10, personal loan is around 12. Do you know what is the interest rate of credit cards between 24 to 42% per annum? If you pay back the money to the bank within your billing cycle, then zero interest. But if you default by just one day, then here’s what happens. You have to pay interest or just for one day, but starting from the day you made the transaction as you made it at the start of the billing cycle, then your interest is on 51 days. Largest one day late payment charges will be applied. You have to pay 18% GST on the overall interest are growing and if you make a new transaction before paying off this old amount then this new transaction would have any interest fee period. It will start attracting interest from day one apart from these payments to solid ways that. Companies make money if this.


If you withdraw cash using a credit card, then you start paying charges and interest right away from day one.


Credit card companies tell you, so you have to pay 50,000 this month? Don’t worry, just pay 5% of it. That is the minimum amount due and you won’t be charged any late payment fee. You think it’s a boon but it’s not, because you will still end up paying high interest rates on the remaining amount. So the day you get your credit card, swear to God that no matter what, you will always pay your dues on time. Because if you don’t, problem number three, credit cards can spoil your credit score.


If you are not able to pay your credit card bill on time for that the bank charged penalty charges.

So now let’s understand how you will come to know whether you are eligible to get a credit card or not.



If you go and ask any of the banks, generally banks will say that an age of 21 years is required. A little bit plus minus here and there may differ from bank to bank but otherwise you can say thumb rule is you should be 21 years of age.


Credit Card issuing banks also check your income requirement. Bank to bank, it will change, the credit card company which is issuing the credit card, they may have their own rules, but you can say that somewhere around at least ₹20,000 per month is what banks would generally appreciate, credit card companies would generally appreciate and then they would give you a credit card.


Credit Card companies also check your ITR income tax return wherein if you’re filing more and more incomes, then there’s a better chance that you will get a credit card.


One more important point is your credit, your credit score. Credit score is a 3 digit number ranging from 300 to 900. This score is used by banks, credit card companies or even insurance agencies to decide whether or not to offer you credit and what the interest rates would be. Means if you want to do business in this country than having a good credit score. It is very important in India. There are some bureaus that keep track of our credit scores like CRIF and CIBIL etc.


Dear reader, in this article you get to know about advantages and disadvantages of credit cards. I think by now you know that credit cards can either make or break you. So, to use them wisely, while using credit cards remain same, spend only as per your purchase capacity. If you have any more questions about credit cards, do let me know in the comment section. For commenting you need to follow our website then you can comment.

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