Advantages and Disadvantages of Credit Card

Credit card is form of money that provides both the capacity to buy goods of services and the capacity to borrow  funds so when you used it, you can get the goods you bought without paying for it yet. Can used in restaurants, hotels, mail-order, medical care, etc.

There are many advantages and disadvantages of using credit cards.

Advantages :

1.    Credit cards can be used  for means of payment so we do not need to bother carrying cash.

2.    Can be used to collect all forms of expenditure in the bill, so that the time that we can spend more efficiently

3.    Can be used to save our expenses, such as hotel room discounts, discount at restaurants, or shopping discount.

4.    No need to carry cash every where who would harm us.

Disadvantages :

1.    The big disadvantages of credit cards is that you will be  charged interest if you do not repay your balance in full every month.

2.    High interest rates and increased debt.

3.    Easer to be a victim of fraud.

4.    Credit limit exceeded.

So, understanding how credit cards work in more detail, the options that different types of card offer and how to manage a card responsibly may be good places to start.

Dais Agustina

Manajemen A

NIM : 1128020012