Advantages and Disadvantages of Credit Cards
Advantages of credit cards
• Credit cards can work out cheaper than a short term personal loan.
• Credit cards can offer a high degree of loan flexibility i.e you can pay the minimum amount or the whole debt.
• No redemption penalties for early repayment of loan.
• Many credit cards offer an interest free period.
• Credit cards offer online purchasing power.
• The key benefit to credit cards is really the added protection you enjoy when making purchases.
• Many credit cards offer enticing additional benefits such as insurance cover on purchases, cash back, air miles and discounts on holidays.
Disadvantages of credit cards
• Cash withdrawals via ATM can be very expensive.
• Credit cards offer readily available credit which can entice you into purchases you really can’t afford.
• Credit cards do have weaknesses in terms of potential fraud, particularly when used online.
This entry has been viewed 6856 times.
READER COMMENTS:
No comments yet.
