Typically customers take a credit card from the bank for online shopping, this is a type of loan that you have to pay to the bank after shopping. However, for the common people it is very difficult to get a credit card from a bank, but if you do any government or private job then the bank makes it easy for you to make the card available. There are some credit card advantages and disadvantages. Here this credit card advantages and disadvantages are described. See them below…
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Credit Card Advantages And Disadvantages:
If you have a credit card, then you must know that whatever you buy from the credit card does not affect the amount of your bank account, which means that you do not cut the account of your shopping with the credit card. However, later you have to pay this amount to the bank with interest. The biggest advantage of a credit card is that you can do any shopping in your card limit anytime. Here the thing separates the credit card from the debit card. Whatever you do shopping within the debit card, it is immediately cut off from your account. There are some disadvantages of a credit card as interest is a significant role in it. So let’s know what are the credit card advantages and disadvantages.
Advantages Of Credit Card:
1. With the help of a credit card, one person can purchase more than the amount deposited in his account ie shopping online. There is no relation between the amount in your account.
2. A credit card helps in building your credit score means that if you pay the amount of this card on time, your credit score gets better. This increases the likelihood of getting a loan early from the bank.
3. If you go shopping with this card, you get reward points and cashback. Although they are a bit too much, the more you shop with this card, the more you increase the reward points and the cashback. You can use these rewards points in separate shopping.
4. There is less chance of frauds in this card, but if you are cheated with this card under shopping and fraud is proven, then the bank will not charge it to you.
5. Not enough charges are available in the credit card, meaning you do not have to pay any fees for this card every year.
6. With a credit card, you can pick up any items on the installment ie EMI. The amount of EMI will be automatically deducted from your credit card.
7. At the end of every month, you get a statement which gives information about when, how much and where you have shopping, it makes you easy to budget.
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Disadvantages Of Credit Card:
1. There are many such hidden charges and fees in this card, which most of the people do not know. The bank also does not tell you about them, in which the bill you get is included in the hidden charges and fees.
2. If you pay a late payment from the credit card, the bank charges fees separately from you under the late payment, which is quite high. Apart from this, the more time you take to pay, the bank charges its money with interest.
3. Whenever you make payments on the international website, the bank does not know about it because the bank keeps only the payments made in the country. In this case, the card is likely to be frozen by the international website.
4. Additional fees are added to the bill when shopping more than the limits. Suppose your credit card limit is 50 thousand and if you make more than 50 thousand shopping, the bank adds an extra charge to your bill, including interest.
5. If we do not pay the credit card bill on a certain time, then it takes an interest of daily on the amount of bill and this interest increases day by day. For example, if you have a month’s bill of 20 thousand which you have not paid, then interest will be on this 20 thousand rupees daily.
So now you have learned about the Credit Card advantages and disadvantages if you keep paying the bills from this card on time, your credit score remains accurate. In such a situation, you can apply for a loan from the bank even when you need it. Given your credit score, you are likely to get quick loans. So if you have a credit card and you want to avoid additional charges, then you should pay the bills on time.