The Pros and Cons of Using Credit Cards

A credit card is like ‘a good servant but a bad master’ very much like money. It is a powerful instrument of exchange which if used sensibly can go a long way in helping you to manage your expenses and maintain your standard of living even when the going is tough. On the other hand, embarking on a shopping or spending spree courtesy the credit and living beyond your means will surely lead to financial wreck and ruin. You’d need to exercise a degree of self-restraint and be sensible with respect to using a credit card for clearing personal payments. Here’s looking at some of the pros and cons of making the most of a credit card.


  1. Power to purchase-With a credit card in tow, your options to purchase or clear payments go up manifold. You can pay locally, nationally, overseas, via net and over phone. There are credit cards that are accepted throughout the world.
  2. Incentives for regular use-Using a credit card for buying groceries, shopping for clothes, purchasing electronic goods, and paying for your flight tickets earns you incentives. One such incentive is the cash-back offer. Using your card for booking flights periodically earns you frequent flyer points.
  3. Bailout-There are occasions when you run of cash or clearing of your salary check is delayed. It is during such embarrassing junctures, that a credit card comes in handy for clearing payments of necessities that are indispensable.


  1. You end up paying more-Since you’re using somebody else’s money, you’ve to pay a price for the same which is called ‘interest’. This fee or interest is over and above the principal sum you’ve borrowed. So, ultimately you’re paying more for buying a good or item.
  2. The burden of accruing interests-Failure to pay the first time means the entire sum gets added to your next month’s burden. And if you miss paying for a series of months, then the interest along with the principal gets compounded. Ultimately, you fall into a debt spiral or cycle which you may find extremely difficult to wriggle out of.

Rounding up, the solution lies in either totally refraining from using credit cards which might be too much of a sacrifice for a majority of people. Therefore, the more sensible way would be to use the same with restraint.

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