A credit card is merely a piece of plastic, but it can make or break one’s financial life. A credit card can can make things much easier and more convenient, but it can also very well be the source of financial difficulties. Before you decide to apply for that piece of plastic, take a look at the pros and the cons of having a credit card (or two). After all, making an informed decision is always better than just taking the plunge without doing some legwork.
The biggest advantage of having a credit card is the ease of making purchases. In this day and age, not having to carry cash around is of paramount importance. You can use a credit card practically anywhere. Whether you shop online or at a brick-and-mortar establishment, your credit card can take the place of cash. The drawback is that sometimes it is too convenient to just swipe and make your purchases even if you cannot really afford it. If this happens too often, you will be caught in a vicious cycle of credit card debt without realizing it.
A credit card also comes in handy in case of a financial emergency. If you do not have enough cash to cover an emergency, then having a credit card can save your butt. The drawback: it is very easy to declare a situation an emergency even if it isn’t!
If you are trying to build up your credit, having a credit card will also come in handy. This is assuming, however, that you use your credit card wisely. That entails not making unnecessarily large purchases and making your payments on time. Otherwise, you might fall prey to the credit card debt problem as well and ruin your credit record at the same time.
The bottom line is that credit cards have to be used in the proper manner, and everything will be just fine.