With the development of the economic market, credit cards have been integrated into the lives of most young people, and while it is used more and more frequently, it also brings many unseen risks, but I think it is possible to bring some convenience to everyone as long as the credit card is used under reasonable circumstances. Using a credit card well can help you save money and is definitely not an overspending or a trap. So its risk depends entirely on how you go about using it. So you should understand the benefits and disadvantages of having a credit card!
Benefits of using a credit card
① The most convenient thing about a credit card compared to a regular bank card is that you can spend without any cash on the card and in most cases there is no problem as long as you return the amount spent on time, and most importantly there are no fees until the repayment period, which means it is interest free.
Most banks have cooperation with many merchants, so if you apply for a credit card with the bank, you can use it to enjoy discounts at the merchants with which the bank cooperates.
③ When you use your credit card for shopping, it's not only very safe and convenient, but you can also get some free gifts or points, which you can use to exchange for some gifts!
④ You can improve your credit score by using your credit card; because the bank where you use your credit card will send your credit card usage to the three major credit bureaus (Equifax, Experian and TransUnion), including your account information, payment information, and the amount of debt you owe. If you keep your spending low and make your payments on time, your credit score will improve over time.
Disadvantages of using credit cards
① Facing high interest rates. Generally, the interest rate on credit cards is higher than other types of loans, so if you don't use your credit card wisely and you don't make your payments on time, the bank will charge you a very high interest rate and you will have to pay a higher amount.
② Credit score may lower your credit history. If you fail to make payments on time for a long period of time, this will naturally have an impact on your credit score. In more serious cases, you may be blacklisted by the bank, which will have an impact on subsequent loans.
Of course there are many benefits and disadvantages of credit cards, it is as neutral as money, as long as we master the right way to open it, it will bring a lot of convenience. Now the major banks for credit card benefits are very much, you can choose and apply for a credit card of your own according to your personal needs!
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