Advantages And Disadvantages Of Having A Credit Card

Posted Date: Sat Jul 2016

Credit cards are a common and convenient way of making day to day transactions. However like everything, it has its fair share of pros and cons as well. In this article we will talk about them in detail. Don’t have a credit card yet? These are some of the reasons why you could need to have a credit card!

Following are some of the advantages  of having a credit card.

Quick way to borrow:

Need to purchase something but don’t have enough money or don’t wish to pay all at once? Instead of asking someone else for money it’s better to have a credit card that allows you to make instant purchases and not have to pay out of your own funds right away.


When a bank introduces any credit card, they offer a number of discounts of various types to attract the consumer. Do you shop a lot? Standard Chartered Bank offers credit cards that give discounts on shopping. Are you a foodie? Silk Bank has the right card for you that offers discounts at a multitude of restaurants and cafes. Habib Bank Limited gives cashback on various credit cards on fuel.

Reward Points:

Another benefit that comes with credit cards is reward points. You get reward points on using your credit card and the points get accumulated over a period of time and have a certain value in rupees hence these reward points can be redeemed at specific places.

Frequent Travelling:

For those who frequently fly to various destinations worldwide, credit cards partner with banks to provide frequent flyer miles and bonuses that can be redeemed in future trips.

Interest Free Days:

After you perform a transaction or make a purchase with your credit card, you are entitled to pay the outstanding amount without any interest for a certain number of days which gives you the ease and flexibility of not having to pay large amounts all at once. Next let’s talk about some disadvantages of credit cards.

Crossing Your Budget:

This is probably the biggest disadvantage of credit cards. Having one means you are enticed to spend money that you don’t actually have. Thus your expenses might spiral out of hand.

Risk of Fraud:

Credit cards can be stolen, physically as well as virtually as there’s a lot of scams involving credit cards and thus one should always beware of using credit cards only on reliable online portals.

Many Charges:

Credit cards come with lots of charges that are deducted upon the usage of credit card. Some of these are joining fee, annual fee, card reissuance fee etc. Hence this can come as an annoyance although the benefits your credit card brings you may outweigh them. So there you go folks, we listed a few major pros & cons of having a credit card.