Advantages of using credit cards
Advantages of using credit cards:
Convenience: Credit cards are easy to use, allowing for quick and convenient payments both online and in physical stores.
Interest-Free Period: If the balance is paid on time within the billing cycle, there is no interest charged, offering a short-term interest-free period.
Rewards and Points: Credit card users can accumulate points or credits, which can be redeemed for gifts, rewards, or discounts.
Cash Back: Some credit cards offer cashback rewards, allowing users to earn back a percentage of their purchases.
Security: Credit cards provide a secure way to make purchases, as they can be canceled if lost or in case of fraudulent transactions.
Social Credit Score: Consistent and timely credit card usage and repayments can positively impact a person's social credit score.
Disadvantages of using credit cards:
Impulse Spending: Credit cards can tempt users to overspend and purchase unnecessary items.
Interest and Late Fees: If the credit card balance is not paid in full and on time, users may be subject to high-interest rates and late payment fees.
Qualification: Some individuals, especially newcomers or those with limited credit history, may have difficulty qualifying for a credit card.
Deposit Requirements: In some cases, banks may require a deposit as a condition to issue a credit card, which can tie up a significant amount of money.
Overlimit Fees: Exceeding the credit card limit can result in additional fees without prior notification.
Cash Advances Fees: Withdrawing cash from a credit card can be charged with high commission rates and interest from the day of withdrawal.
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advantage:
1, It is easy to use, very convient to pay not only on line but also in store.
2, If you pay the money on time, there is no interest.
3, You can accumulate points or credits which can redeem gifts or rewards.
4，you also can get cash back by using them in some kind of circumstance.
5, If you lost your card or come across the fraud, resulting in lose of your money, you can call the credit card company and cancel the transaction. So it is a secure way to purchase by credit card.?
6,It can help to enhance your scocial credit score if you use it regularly and make a repayment on time.?
disadvantage:
1, The credit card tempt you to go overboard, leading to buy some useless items.
2, If you forgot to pay the money back before the due day, you will be fined as well as be charged of interest.??
3, If you are a new comer, maybe you are not qualified to have a credit card.
4, Some banks, including TD, require a deposite up to $2000 as a condition of issuing a credit card for you.
5, If you use the card over your crerdit card limit, you will be charged an additional fee without warning or notifying. That was my firsthand experience.
6, Withdraw cash from credit card can be charge for high commission.
