Sunday, July 22, 2007


A credit card is a piece of plastic card that can either help the user budget his finances or cause him a chain of troubles. This involves a credit system where the issuer lends the user a certain amount transpired in his account and the user pays his balance at the end of the month or billing period.
This balance is charged of no interest if paid off dutifully at the end of the month. Otherwise, the charge rate rises each month the user fails to meet his obligation.

Advantages of having a credit card

A credit card is beneficial if it is properly used.
  1. This provides the user the privilege to shop anytime he wishes even without cash on hand given that the balance is paid in full and on time.
  2. It is more convenient than carrying cash in your pocket, which is susceptible to being lost, or be in accidents.
  3. It will also help you in establishing a good name in terms of credit.
  4. The credit card system is a convenient way of purchasing and paying for services or goods both in the typical stores and online stores because of its easy access features.
  5. It provides incentives that you can enjoy. These incentives come in reward points and are redeemable.
  6. You do not need to write a check, you can pay later.
  7. You can avail of the discounts right when they are offered, unlike when you have to pay cash, you wait until your compensation arrives.

Disadvantages of having a credit card

Credit cards can be very costly if you do not watch what you spend. A rule that you should follow is if you don't need it don't use it.

  1. You pay a high cost to borrow money which is your finance charges and interest rates
  2. You debt load is increased and so is your debt to income ratio
  3. You decrease the amount that you should be saving in the bank cause you are paying interest and financial charges.
  4. Have less money each month for household expenses
  5. You can easily overspend and create real bad financial difficulties.
If you buy items using you credit cards you will have to pay the lend era finance charge for the use of their money. The finance charge is the total amount you will pay which includes interest rate costs and other cost such as services charges and possible other charges.

But amidst all these, a credit card can be a good asset to your business and personal lifestyle. Those stated above are just warnings to guide you to the wise use of your credit card.

So before deciding on the credit card that you plan to apply, make sure to weigh the importance of the benefits that the company offers. And when you have been issued of the card, be a responsible card holder. Keep in mind that though you are not yet spending your cash, sooner at the end of the month, you will. So be intelligent in purchasing your items. Stick to your budget when you market your goods.

And notably, make sure that you pay your accounts on time to avoid late payment charges.

A responsible and disciplined handling of the credit card is required in order to avoid failure of payment and misuse of your monetary fund. Remember that this should be an asset that you must maximize the use. Don't turn it to a liability that will dump you to a deep crisis.

Mario Churchill - [online] How to use the credit card wisely?. Retrieved : July 22, 2007 from, July 22, 2007

What are the advantages and disadvantages of using a credit card?. Retrieved: July 22, 2007 from


Tingog said...

! thank you for posting this.

Tingog said...

very informative! in my case i think, it is better for me not to keep a credit card anymore.

Muddassar Shah said...

Credit cards are very popular cards today your blog shearing information about credit. Its very helpful for all credit cards user.
Plastic card holder.