Customers on both the sides of the credit card fence have valid points whether to use or not use credit cards. While there has been an increase in the number of users of credit cards across the globe, Credit cards have received mixed reviews from customers.

Pros of using credit cards
Plastic money has made life easier. The use of credit cards simplify personal spending and finances in the following ways:

• Ease of use: As compared to cash, credit cards are faster and easier to use while making any purchases. Swipe your card and you are done in seconds.
• More purchasing options: If you have cash, your purchasing options will be limited. With credit cards, you can make your purchases on the phone as well through the internet.
• Credit boost: If you use your credit card with prudence, you can build a good credit score, which will make you eligible for a mortgage loan in the future.
• Earn while you spend: With credit cards, you can earn rewards that can be used for cash rewards, miles, gift cards, and other merchandise. The more you use your card, the more rewards you will earn.
• Ability to pay in installments: You can pay off the balance of your credit card in installments over a period. You may also choose to pay in full all at once.
• Financing free of cost: When you take advantage of interest promotions, you can finance purchases and loans free of cost. Some credit cards come with a zero percent interest on purchases and offer balance transfers for a period of six months. This will also give you the ability to pay off your balance without incurring extra cost.
• No need to carry cash: When you use a credit card for your purchases, you do not need to carry cash with you or stop by at an ATM to withdraw cash.

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Cons of credit cards
While credit cards have a lot of benefits, there are some downsides to them as well.

• You spend more than you can afford: Credit cards give you an additional purchasing power and an illusion that you have more money than you really do. People end up spending more than they can afford while using credit cards.
• Reduces future income: Every time you use your credit card, you are borrowing money, which you have not earned. You will have to repay this amount in the future. This reduces your future income.
• Expensive fees and interest: Depending on the type of card you use, the credit will cost you over time. You will be liable to pay penalty fees if you do not repay the amount in due time.
• Potential for debt: Every time you use your credit card, you create a debt for yourself. You can keep off the debt by paying the balance on time every month, but if you only pay the minimum amount, your liability will increase and you will end up in a debt trap.

While there are a few negative aspects, if used carefully, credit cards can be a boon for you.

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