Credit Cards: Pros and Cons

Credit Cards: Pros and Cons

Credit cards have become indispensable in our lives. Credit cards provide more discounts, rewards, and deals than any other financial instrument, making them a gold mine for smart shoppers. On the other hand, credit cards can become debt traps if not used appropriately or if overspent. If you are looking for fast loan alternatives, you can opt for Payday Depot and receive the required sum in no time. However, here’s a rundown of the benefits and drawbacks of credit cards.



You won’t be broke. A debit card can substitute a credit card. Using a debit card instead of a credit card stops you from accruing monthly interest. Keep an eye on your bank account balance.


Like a debit card, a credit card provides a monthly statement and online account that a debit card does not. However, several credit cards issue year-end summaries that can aid with taxes.

Preventing fraud

Credit card companies often have safeguards in place to protect you and your transactions against credit card fraud. Call your credit card company if you observe unusual charges. If you can’t find your card, report it stolen.

Low-cost loans

You’ll get paid in five days, but you need to buy something now. You can charge your purchase now and pay it later. 

Cash advances

You’ll always have money. Cash advances have greater interest rates than other loans, so plan to pay them back.

Subscriber perks

If you shop wisely, you can get discounts or cashback on your purchases. Compare the cards to find which one best suits your needs and habits.

Good credit history

Your ability to pay off your credit card purchases on time will help you create a good credit rating, making lenders more eager to give you money at reasonable interest rates.

Buy insurance

Your credit card may let you dispute a charge or refund damaged goods. Debit cards offer similar security, but you must wait until the issue is rectified before you can get your money back.



Their ease of usage makes them easy to abuse.

If you buy something and don’t pay it off right away, you’ll be charged interest on top of the purchase price. So if you have a credit card balance, everything you buy will be slightly more expensive.


Annual bank fees, cash advance fees, and interest rates vary. Interest and fees may overshadow discount or reward benefits. Consistency is the key.

Credit scores may suffer

Inappropriate credit card use can harm your credit score, making getting the best rates on mortgages, auto loans, and personal loans difficult.

Teaser rates can be tricky

While a low-interest rate may appear to be a great deal, many are surprised to realize that it was just temporary. Reading the fine print may save you thousands of dollars in interest.

Confusing fine print

Reading a credit card’s tiny print is like translating a foreign language. However, while the most important card data is normally presented in a clear Schumer box, industry jargon can obscure other details.


Credit cards, like other things, offer benefits and drawbacks. If used correctly and in the right situations, a credit card may be a valuable financial tool. Credit cards can be harmful if your spending gets out of control and isn’t structured with payments and accounts.

About the author


Steven Ly

Steven Ly is the Startup Program and Events Manager at TheNextHint Inc. She recruits rockstar startups for all TC events including Disrupt, meetups, Sessions, and more both domestically and internationally. Previously, she helped produce Dreamforce with Salesforce and Next '17 with Google. Prior to that, she was on the advertising teams at both Facebook and AdRoll, helping support advertisers in North America and helped grow those brands globally. Outside of work, Priya enjoys Flywheel, tacos, the 49ers, and adventuring around the globe.

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