Credit card - to have or not to have. Review on Advantages of Credit Cards

In modern commerce credit cards are an essential tool. Credit card are being used more and more in everyday activities. In fact some deals are cheaper if you are paying with credit card.

There are other services that are not available if you do not pay by credit card. I mean if you want to buy online then credit cards are a preferred option or sometimes the only option.

Advantages of having a credit card

1. If you pay by credit card there is implicit guarantee of satisfaction because as a customer one can stop payment.

   
   




2. If a airline ticket is booked on a credit card and specially if you are going overseas, the travel insurance is covered, that could otherwise be a lot of money.

   
   




3. Free airfare milage based on point system that can take you or your family to a destination of your choice if you can accumulate points. This is quite easy as the shopping can be done on credit card and the points are accumulated that can be encashed for gifts or travel.

   
   




4. The best part is that you can get statement of all expenses and you can keep a track of your expenses at a glance.

   
   




5. It helps to establish a credit history and can help in getting loan if needed.

   
   




6. There are a number of innovative credit cards that help benefit the customer. There are cards that help accumulating points towards reducing the cost of your new car.

   
   




7. On internet it is the preferred option and you can also participate in on line auctions if you have good credit rating.

   
   




8. You can get cash advance anywhere at so many cash outlets.

   
   




9. Some cards have your picture on it that is as good as a identification paper.

   
   

It can not all be a good story so there are some negatives.

Disadvantages of Credit Cards

1.There is a temptation to acquire more and more cards. Some have more than their share of cards. They can loose track of payments and be in difficulty.

1. Some credit cards have conditions that may put you in difficulty if you have not read the fine print.

   
   




2. Then there is a danger of someone can get hold of your credit card number and misuse it.

   
   




3. There are a number of cases of double dipping done at your expense when paying at an outlet by credit card.

   
   




4. Statics are available that the domestic violence increases after the festive season in the credit card user societies when the credit card bills arrive.

   
   




5. Using credit card exposes one to the possibility of some companies profiling and lobbying you based on your spending pattern. Some governments also take interest in the spending patterns of individuals and credit card statements make their job easier.

   
   

There are always dangers when money matters are involved but one has to live with the necessary evil. The happy are those credit card users that pay up and take advantage of the free credit days that the credit card companies provide.