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Credit card being a flexible electronic card paves the way for its genuine holder to purchase variety of consumer items and pay the bills of hotel, restaurants, amusement parks, fuel etc. Without mounting a load of notes on its user the credit card makes all types of payments with in a few seconds of time in the utility area. There is no  risk or disadvantage of being plundered with the credit card as it provides a complete security to the card holder from a variety of risks generally awaiting the individual carrying a big amount of cash with him or her. As the credit card offers a lot of advantages to its user, it has different types of concealed disadvantages as well which the card holder is needed to be introduced with.

Advantages of credit card

• Unlike carrying a briefcase full of cash in order to make the payments of capital goods purchased like car, home theater, TV, refrigerator, jewelries, computer or domestic appliance-the credit card makes all types of payments of goods and services with in a few seconds.
• The credit card lessens the burden of receipts of purchased goods as well, for it feeds complete information of the purchased goods, guarantee, warranty, payment, etc, which proves to be of a great advantages in case there emerges a need of repairing of the respective domestic item within guarantee/warranty period. The credit card furnishes the info of the date of purchasing, serial number, secret code, etc.
• A credit card paves the way for heavy amount loans like home loan, car loan, etc by revealing a favorable history of credit-record. If the user is prudent enough to use it as per his/her indispensable needs by repaying all the cash amount on time without causing a superfluous delay, he within a few hours has got to be granted a new loan, on the basis of credit history.
• The credit card permits the user to meet his/her urgent needs if the situation warrants him/her during a natural calamity or accidents like flood, conflagration, road accident, etc. Proving to be of extraordinary  advantages the credit card permits the user to use the credit card beyond a permissible limit.
• Few credit cards belonging to some specific banks and financial institutes offer a great discount on the purchase of some particular goods. It is done for promoting the sales of respective products shifting the burden of expenditure on you through the credit card. Beware of such offers. Try not to be influenced of any such allurement, without becoming avaricious of the rebated goods and make sure that you repay the amount on time of whatever purchase you’ve done already through a credit card, in order to avoid superfluous burden falling onto your shoulder.

Disadvantages of credit card

Though using a credit card brings a lot of advantages to the credit card holder, there are many invisible disadvantages as well which the credit card holder may come across if he is not aware of its contrary effects on credit card users-

• Rudimentary usage of the credit card, where on the one side, does not restrict the user from making further arbitrary purchases, it hacks him after some time provided the user doesn’t make monthly repayment owed by him on the other. If you have made the purchasing through your credit card worth $200 against $50 actual amount deposited in your account and are adamant to continue on a shopping spree without bothering to know how much you owe to the bank, you will be slapped a biggest amount of dues without being intimated before. Beware of imprudent shopping through credit card. Don’t go for purchasing beyond your monthly repaying capacity.
• The credit card issuing banks and financial institutes make money by showing a dream of huge cash. Almost all the status conscious people in the US get trapped into the dragnet of credit card and do pay a heavy amount as the debt mount charged every month by the banks from them.
• If you miss your credit card somewhere or it is stolen or misused by some one, the onus still will lie on your shoulder, provided you fail to intimate the respective bank or financial institute by phone or in person immediately of credit card’s going out of your possession. Though some banks do not charge even a single a penny against fraudulent purchasing through the missing credit card, after being intimated by the customer, some banks do charge a meager amount of money from the real card holder.