Advantages and Disadvantages of Having a Credit Card

Having a credit card is neither good or bad. There will be some people who will tell you that credit card is bad especially if you are not rich. Some people on the other hand would recommend it and even encourage you to get one regardless if you are rich or poor. These are usually based on how people have experienced about having a credit card in the first place. Here are some advantages and disadvantages you can checkout to know where you can put yourself in if in case you consider of getting one.


  • Yes, this is actually the best advantage a credit card can offer. With the growing technology, you can now pay for services and buy goods through an online store. Having a credit card allows you to pay an online merchant without requiring any cash to be mailed or transferred.
  • Credit cards offer the most efficient mode of payment as it the holder does not need to bring a big amount of cash when making large purchases. A downpayment for a car, equipment, or even property is available through credit cards. The holder no longer needs to visit a bank to withdraw or have the bank create a manager’s check.
  • With all the competition going on between card issuers, they are willingly providing promotional offers and perks for the holder. They also give rebates and discounts that can be taken advantage by the holder.


  • One disadvantage of having a credit card is spending beyond your means. Having access to payment where cash is not available can be taken advantage of. Sometimes we start believing that it is okay to spend even without cash and we can pay for it at some point. Later on, we find ourselves with an accumulated debt that is actually hard to manage.

Interest. Like any other loan, using your card accumulates interest. If you pay your credit card full every due date, you still accumulate interest for the days that the amount remains outstanding. Interest rates are the way for a credit card company to collect from its holders the payment for using their cash.