The Pros and Cons of Credit Cards

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Some people say credit cards are great, while others proclaim they are dangerous. How can you know whether or not to trust credit cards with a plethora of mixed signals? New Era Debt Solutions reviews the pros and the cons of using credit cards to help you decide if they are the right fit for your finances.




  1. Rewards


Most credit cards come with perks like cashback, travel rewards, and other types of benefits. When you spend enough money, you get a little something back to reward you for using the card. Sometimes rewards can be tough to achieve and may take some time to accrue.


  1. Build credit


Credit cards are an effective tool to help demonstrate that you are a reliable borrower. Though there are various factors that influence your credit score, it is crucial to pay on time and keep your balances low. Credit history is also an important factor in building your credit. They say the longer you have your credit card, the better your score will be! A little bit of patience and responsible spending can help you build excellent credit.


  1. Delayed payment


Another benefit to using credit cards is not having to pay your balance until the following month. It can sound dangerous but is useful when you need to make larger purchases in order to avoid depleting your checking account. For example, if there is an emergency expense you need to cover, then using a credit card is ideal for temporary relief. The important thing to remember is: don’t make a habit out of using your credit cards when you know you don’t have the money to pay them off.


  1. Security


With advancements in technology, credit cards are easy to keep track of for security purposes. Let’s say someone steals cash from your wallet. Chances are you’re never seeing that cash again. On the other hand, if an unauthorized user steals your credit card, then you can easily call to cancel your account and start a new account. Some credit card apps also make this effortless by allowing you to freeze your account temporarily.




  1. Interest rates


High interest rates can make paying off credit cards a difficult task even after just one missed payment. As a result, creditors pay to collect and can add stress to your life. Store credit cards are especially known for their astronomical interest rates. Though credit cards rewards and benefits may seem glamorous in the moment, sometimes they are not worth it in the long run.


  1. Additional fees


Some cards charge annual fees just for you to possess the card, but credit card companies typically charge fees if you submit a late payment. A few late payments can add up fast even though they may seem low initially.


  1. Convenience


Though this may sound like a benefit, convenience makes swiping credit cards effortless. It becomes so easy to swipe instead of debating if you should hand over your hard-earned dollars. Credit card debt can accumulate quickly if you don’t keep track of all your purchases.


  1. Destroy credit


As mentioned above, credit cards are a useful tool to build credit, but they can easily hurt it if used improperly. Several missed payments, too many credit cards, and high balances are among just a few of the causes that can diminish your credit.


Are you burdened by credit card debt? New Era Debt Solutions has settled over $275,000,000 in debt since 1999. We want you to be our next success story. Call one of our friendly counselors today for a free debt analysis to determine the debt reduction option that is right for your needs.