Advantages & Disadvantages of using a Credit Card in India | Pros & Cons
Advantages & Disadvantages Of Using A Credit Card In India
If you are thinking for applying credit card then you must be aware about its Pros & Cons. This page aims to Advantages & Disadvantages of using a Credit Card in India. It is a type of arrangement through which you can buy goods or services and pay after some time. Credit cards recommend a flexible way to cover unexpected expenses and make your reputation well. However irresponsible use, escort you to long-term debt and critical financial condition.
Credit cards permit you to borrow money from your bank to make your payment on your purchase. It has extensive range of benefits. You will enjoy shopping with discounts and rack up miles or reward points, only if you manage your account in proper way and also pay your bills on time. While on the other hand if you use it exceeds the limit then you will have to pay exorbitant amounts of interest. So every object has Pros & Cons, it’s depend on the user in which manner you use it. Here on this page we are presenting the Advantages & Disadvantages of using a Credit Card in India, users are advised to have a glance on below section.
Advantages of using a Credit Card
Allow To Large Purchase
The most important benefit of credit card is that it allow you to large purchase in case of emergency for example if you have any kind of medical emergency and you don’t have sufficient money in this types of case it provide you best support. You can make your payment instantly through the credit card.
Purchases on EMI
Mostly peoples prefer credit card rather than carrying cash or ATM. If you have keen desire to purchase any luxurious item or product, it avail you option of EMI on large purchase. You can buy any expensive smart phone, washing machine, LED etc and split the payment over a few months. Generally the rates of interest on these types of purchases are usually much lesser.
The helpline services are 24/7 available for its users. In the case of Theft or Loss you can contact to the service panel and register your complaint. They will block your card so that no one can use your card.
You will obtain you expense record per month. You can take a view of your expenses and if you think that there is some changes need so you can do. Bank also provide SMS and email facility that you are always keep in touch of your card detail.
Rewards or Cash Back in specific cases
It also offers rewards in some specific conditions as airline tickets and other purchase. During using your card you may get some points for each time. And you will get reward on your purchase.
Convenience of Foreign Currency Transactions –
When you went out with your family or friend for tour in foreign country you also don’t know how much money you need and when? In this case if you can use your Credit Card without converting your money into foreign currency.
Disadvantages of using a Credit Card
For many credit cardholders any due is a matter of huge deception. Usually mostly people imagine that the minimum due is 5% on total amount. After seeing the minimum amount peoples think that it is low bill, they can easily pay it but day after day it randomly increasing. So a small due converts into large.
Generally, the interest rate is around 3.5% per month. After that your free credit period will lapse and you will be charged interest for your subsequent purchase. That means your every purchase will build up your interest.
It is dangerous for those who are extravagant or shopping freaks and don’t have self control. Some people carry multiple credit cards and they become bankrupt due to unable in making payment of their interest. Some of them are spoiled their well life. So it’s a huge disadvantage.
Credit Card fraud
Each user get specific card number but it is easily theft by fraudsters without facing any difficulty. Every year Billions of dollars are being lost due to credit card number. Getting information about the credit card details is not a difficult task. Online crime thrives are expert to steal credit card details.
Low introductory rates are an attractive option for everyone, but these types of options are applicable for limited time. The interest rate is increasing day by day when the teaser rate expires.
Credit cards are the easiest way to make your payment completion and borrow money in case of emergency at low interest rate. It is also a safe and secure method as you know what you’re doing. If you pay back borrowed money within the time period, there is no need to any pay extra charge but, if you don’t act as discipline user then you end up racking up debts with lots of interest.