Advantages Disadvantages Credit Card Essay Points

This is the topic where you can find the Advantages and Disadvantages of Credit Card in Points. Credit cards were introduced in the early 20th century when large firms decided to issue a special card to their customers for making purchases at the company’s outlets. It was launched by Diner’s Club in the 1950s. Almost a decade later, American Express, another famous company, decided to introduce its own for travel and entertainment purposes. These credit cards have many “advantages and disadvantages” were not free to use.

In other words we can say the Pros and Cons of Credit Cards, Merits Demerits of Credit Cards. A yearly fee was charged by the companies and bills were sent to the customers every month. In addition to this, the merchants also had to take care of the 5-7 percent service fee charged by the issuers. Few years later, a more innovative idea was made a reality. The banks started to issue these to their customers.

The process was almost the same. Customers were sent the bills monthly but this time they had the option to pay the entire accumulated amount together or in installments. This was advantages for some people and disadvantages for others. Credit cards are apparently a blessing for people but they have a “positive” and “negative” side. Let’s have a look at some advantages and disadvantages of credit card.

Man Holding Credit Card in His Hand

Advantages and Disadvantages of Credit Card Essay

Advantages of Credit Cards

  • Advantages of Safer and Efficient

The First Advantages of Credit Card is that Mostly people think about it, as unsafe and hard to handle.

Get quality help now
Marrie pro writer

Proficient in: Banking And Finance

5 (204)

“ She followed all my directions. It was really easy to contact her and respond very fast as well. ”

+84 relevant experts are online
Hire writer

The reality is quite the opposite. These are small in size which means you don’t need much space in your wallet. You can take it anywhere with you and you can make a purchase without having physical cash in your pocket. If we compare a credit card to cash, stolen cash cannot be recovered but a credit card can be. It is very easy to cancel a credit card in case you lose your wallet or purse. You just need to contact your bank and your card will be frozen within minutes. Later you can order a new card. If you lose your wallet full of cash, you may recover the wallet but the cash? 1/10 probability!

  • Get a Charge-back Immediately!

Second Advantages, with credit cards it is possible to get a charge back sitting at home. If you purchased a product that you’re not satisfied with, you can immediately request a charge back. This means that all the purchases you make are safe. Plus, you can also get a charge-back from an online retailer! It’s not just a about making payments, it’s about receiving too!

  • Shop Online Anywhere!

The “biggest advantages of credit card” are that you can use it to buy products from millions of online shops. A debit card can perform the same function too but in many countries, only a few banks provide this feature in case of debit cards. International payments are not that easy to make using a debit card but with a credit card, you can make a payment anywhere in the world. Whether it’s Asia of America, you can make a purchase in any continent with just a few clicks!

  • Multiple Currencies Supported Pros

The best and positive thing about credit card is that they support multiple currencies. So if you have dollars in your bank account, and you want to make a purchase in Pounds, leave everything to the little master. You won’t need to worry about the country’s currency at all. The currency conversion charges are going to be deducted from your bank account but that’s not a very big problem considering the benefits of this feature. This is helpful for those people who shop at overseas stores.

  • Earn Points on Transactions

Credit cards encourage you to spend more but benefits that they give to the customer is the points in form of royalties, discount and cash back. Yes, this is true that some credit card companies have collaborated with famous brands and they give you a special discount if your purchase their products. This is also having many advantages that you may also get free goods!

  • Emergency Credit Benefits

Last advantages of credit card are that you’re safe wherever you go. If you are out of cash and you need to make a quick important purchase, credit cards are there to help you. This will allows you to borrow cash from the bank which you later have to pay. This feature is very helpful when you need cash urgently.

Advantages and Disadvantages of Credit Card in Points

Disadvantages of Credit Card

  • Disadvantages of Interest fee

First debate or first disadvantages of credit card is that all the beneficial features are not free to use. They come with a fee, a fee that is commonly known as interest. If you have decided to pay in installments, you will have to pay an interest rate per month on the accumulated payable amount. The interest rates can be as high as 20 percent per annul and that is not worth it. You may have to pay two times more than the original amount. It’s just like any other debt. If you are not able to repay the accumulated amount, you may find yourself in deep trouble!

  • Chances of Getting Hacked Disadvantages

Second biggest “disadvantages of Credit card” are safer if we compare it with cash but when it comes to online security, they are not as safe. Hackers are always looking for victims. Phishing is the easiest method to hack someone’s personal information. If you’re making a purchase on a website there’s a possibility that you are being spied. It is better to see the certificate of a website before inputting your card information because if you get targeted by a predator, you may have to face legal authorities. Always use a website which uses https instead of http.

  • Disadvantages of Annual Charges

A credit card has an annual fee unlike a debit card. You may have to pay 30 dollars of even 1500 dollars per annum for keeping your credit card alive. It depends on the type of card you own. The more features you want to use the more fees you will have to pay. You can also get a card that has no annual fee but you won’t get all the features too!

  • Hidden Fees Disadvantages

Another disadvantages are here that Interest is not the only charge you have to pay. If you exceed limitations you are going to be fined by the bank. Amounts are also deducted when you pay back periodically. Late payments are also fined and there are other fees that are not shown clearly when buying it.

  • Ruins your statements.

Did you know that credit card repayments are as important and repaying a loan on time? The late repayments of a credit card purchase are recorded on your bank statement and they may cause serious issues if you want to obtain loan.

  • Encourages spending more.

The Last Disadvantages of Credit cards encourage you to spend more. You know you can buy anything even if it’s not in your range. You see a special discount and you want to purchase that thing. This is what a credit card can do to you!

These cards are very beneficial but they come with a cost of using. This cost is not just related to the money but to all other negative factors which include theft, lack of security, hidden cost. Now tell your opinion about this topic of advantages and disadvantages of credit card in below comment box. Before purchasing analyze these factors in detail. Choose wisely!

Cite this page

Advantages Disadvantages Credit Card Essay Points. (2020, Mar 05). Retrieved from

Advantages Disadvantages Credit Card Essay Points
Let’s chat?  We're online 24/7