What is Credit Card [Advantages and Disadvantages]

What is a credit card?

A credit card is a plastic card used as part of a unique payment system issued to the users of that payment system. Carriers of these cards can purchase goods and services and promise to pay. Local banks or credit unions usually give these cards to consumers. The size and shape of credit cards comply with the ISO / IEC 610 ID-1 standard.


The use of credit cards in financial transactions is increasing day by day. Credit cards come in handy for large purchases. However, many people have a fear of credit cards. They think, in the end, it becomes a spending trap or not! The advantages and disadvantages of using a credit card are briefly discussed here.

Quick transaction;

Suppose you want to buy something costly. I can’t raise so much money at once. I can’t even borrow from anyone. The most useful of these cases is the use of credit cards. This allows you to buy the product quickly and pay the price for several months.

It doesn’t seem like much of a debt burden. In this case, also, one has to use one’s judgment and intellect. The price has to be paid according to the time limit. If not, you may have to pay a fine.

Reward points;

Price return points, free air travel, or extra reward points are some of the most tempting aspects of credit card transactions that can be found when transacting with a credit card. These prize points can be redeemed or utilized later if desired

More security;

Credit card security measures are much more secure than fraud, theft, or the same cost more than once. If a credit card, you are not responsible for any purchases made with that card. It is said that credit cards are more secure than cash, debit cards, and checks. You will get your money back if your card is mistaken or forged or stolen.

Loan facility;

Some credit cards, especially abroad, offer loans at zero percent interest. In these cases, you have to pay a certain amount of money per month, which is quite convenient. Some cards have a high-interest rate on loans. There is an advantage in this case too. Loans are repaid quickly to avoid burdens.

Increasing credit score;

If your transaction history is not a pleasant one, one of the best ways to increase your credit score is to use a credit card regularly. If you pay your bills on time with your regular credit card, your credit score will continue to increase rapidly.



The biggest challenge with credit card shopping is keeping track of the costs. You may find that you are spending more on shopping in such a way that you can pay off at a later date – but forget that you have to pay extra interest.

Credit Score Complications;

Failure to pay monthly installments for credit card purchases will harm your credit score. If you close a credit card without spending all the debts, it will storm the credit score.

Annual Fees and Other Subscriptions;

Most credit cards have an annual fee. Also, some subscriptions apply in different ways, such as late payment fees, balance transfer fees, overdraft fees, etc.

High-Value Transaction Fees:

There are no significant fees for purchases, such as debit card surcharges, which is not the case with credit cards. In this case, a very high cost is applicable. It may be seen that instead of the debit card, you have to pay more service tax on credit card purchases.

Hidden expenses;

Paying interest rates is not the only cost of using a card. You may have to pay a fine if you do not pay the monthly fee on time. A certain amount of money has to be paid even if the credit limit is exceeded. In other words, using a card without knowing the time is quite dangerous. You may have to pay a fixed rate to withdraw cash using a  card.

“What is a credit card”

Recognize the correct card;

It is essential to choose the right card, which is convenient for you. Using the wrong card day after day will only increase the debt burden. But to understand it, you have to read the whole terms carefully. You have to choose which one is consistent with your income.

I hope you understand,

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