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Credit Cards: The Advantages And Disadvantage

When you use a credit card, which is an automatic advanced card, then it allows you to buy products without paying for it upfront. Credit cards are used throughout the world at places such as restaurants, online retailers, hotels, grocery stores, medical care facilities, products advertised on televisions and even church bazaars to name a few. There are both advantages and disadvantages of using them, and some of them will be discussed below.

1. The Advantages– When you have a credit card, then you don’t need to carry cash around with you. Not only that, but you can usually receive a cash advance when you have a credit card. Furthermore, many places that don’t accept personal checks accepts credit cards.

Also, a credit card serves as a short-term loan. This means if you find something you want and you don’t have money, then you can use a credit card. Not only that, but a credit card gives you purchasing power, which can come in handy if you’ve moved to a new place.

If you use a credit card to buy something that costs $50 or more, and in the state of Colorado, and you find out that it doesn’t work, then you can have the credit card company withhold the payment. You can do this if you have tried to resolve the problem with the company you bought the item from. If you travel to another country, you tend to get a great exchange rate, and the same goes for rates in regards to getting cash out of an ATM. Just make sure you find out how much you will get charge by your credit card company before you actually travel.

Credit cards are also useful for bookkeeping purposes. In fact, you might be able to get bookkeeping down to just a single monthly bill. This is better than dealing with checks.

2. The Disadvantages– Some people have been taken advantage of by dishonest salespeople. Not only that, but if you have a credit card, then you’ll pay more for the things you buy, and this is because of interest rates. Also, some people have numerous credit cards, and each one only allows you to spend a certain amount of money, and when limits add up and you have more than one card, then you could end up falling into a debt trap.

Credit cards are easy to get, even if you have bad credit. In fact, they tend to be easier to get than loans, but loans sometimes have lower interest rates than credit cards. However, the choice is up to you as to whether or not you should get a credit card. Now you know the advantages and disadvantages of credit cards, and that should help you make a decision.

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