Pros and Cons of Using Credit Cards

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Before you start using credit cards, you need to understand the pros and cons. There are numerous advantages to using a credit card as well as disadvantages of using a credit card.

Pros:

1. Credit building: Credit card usage can help build and improve credit history and score.
2. Rewards and benefits: Many credit cards offer rewards and benefits such as cash back, points, or miles.
3. Flexibility: Credit cards provide a line of credit that can be used for purchases, allowing for more financial flexibility.
4. Fraud protection: Credit card companies often provide fraud protection, and in case of unauthorized charges, you may be able to get your money back.
5. Global acceptance: Credit cards are widely accepted around the world.

Cons:

1. Debt: Credit cards can lead to high-interest debt if not used responsibly.
2. Annual fees: Some credit cards charge an annual fee, which can be a significant cost.
3. Interest rates: Credit cards often have higher interest rates than other forms of credit, leading to higher debt if not paid off in full.
4. Temptation to overspend: Credit cards can be a source of temptation, making it easier to overspend and build up debt.

 

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It depends if your bank provider is offering national or international credit card. Some countries offers only national credit card that you could not use for online purchases from external countries means your credit card could not process online checkout for an online store from another country but could be used for the local store purchase.