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Advantages and Disadvantages of Using a Credit Card

Credit cards are non-cash transactions in the form of debt or loans, where each transaction will be billed to you when it is due. As a card that is currently used as a payment method, of course, credit cards have advantages that will be an advantage for you, one of the advantages is that many credit cards provide discount or cashback promos that can cause your transactions to be more economical. Credit cards will help you make transactions that are more practical and easy, though of course credit cards also have drawbacks that can cause you to suffer losses. Therefore, as a bank customer if you plan to have a credit card, you should pay attention to the advantages and disadvantages that can be obtained from a credit card

Advantages and Disadvantages of Using a Credit Card

Here are some benefits that can be obtained from a credit card. The credit card benefits that you can feel include

  1. You don't need to carry a lot of cash when shopping or transacting when you want to buy an expensive product, you can simply swipe your credit card.
  2. With a credit card can ease the burden when you are going to buy the item you want because the payment system from the credit card is to buy now pay later, so you can buy goods now and make payments by paying in installments regularly or paying nominal the following month.
  3. You can get reward points if you frequently use a credit card and can be exchanged for prizes, of course there are provisions that apply or what is the minimum nominal amount of your expenses using the credit card.
  4. You can get discounts at certain merchants that work with credit card issuing banks.
  5. You can get an installment program with 0% interest for pem shopping for certain items.
  6. You don't need to worry if there is an emergency that requires you to pay certain bills because credit cards can be used for emergency purposes.
  7. You do not need to worry about payment because there is a payment due from the transaction until the bill is issued.

There are so many benefits that you can get by using a credit card, but of course there are losses from using a credit card. The disadvantages of using a credit card are as follows:

  1. Because the system owes first, there is a possibility that you will not monitor the expenses incurred so that your billing occurs without your realizing it.
  2. If you use a credit card excessively you will be Over limit fees here will be very detrimental to you
  3. If you pay bills past the due date, there will be interest charged to your transaction.
  4. Credit cards have strict rules that you must obey because otherwise you will be charged fine.
  5. You have to pay to get a credit card, for example credit card annual fee, administration fee via bank payment and material costs.
  6. Credit cards are also a payment method with a very high risk for credit card users. be careful when transacting or storing your credit card. This crime is commonly referred to as carding.

Credit cards can also provide disadvantages for those of you who are not careful when using a credit card. Therefore, be wise – wise and be careful when using a credit card. All of the information on the advantages and disadvantages of using a credit card from us, Thank you.


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