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  • Category: Miscellaneous

    What are the advantages and disadvantages in keeping credit cards?

    What are the advantages and disadvantages in keeping a credit card? Many people have credit card. But I am sure some of them will not be fully utilizing the benefits of it. They may also face problems with their credit cards. Is it recommended for everyone to have a credit card? What is its necessity? And any disadvantage in owning a credit card? Why do banks call people and asking them to get a credit card whereas there are less or no calls asking them to get a Debit card. I would appreciate members if I get some fruitful responses for this thread.
  • #421840
    Credit Card transaction passwords are not supported by high security passwords being received on the connected mobile as one time password card OTP as in case of net banking. If credit card is lost than transactions can be carried out just by swiping. On line transaction can also be carried out if somebody remembers your Card Number and three digit CVV number at the back of card. The user has no option to change the CVV and pre printed CVV remains good for all the time. If cards are handed over to waiters in Hotels then there are gadgets available in the market at very small cost in which the waiter can swipe and transfer the data from the card's magnetic strip to be utilized for cloning the card. If banks introduce OTP at the time of use at POS or online then it may become less risky. While the credit on credit cards is free of interest for specific number of days as per policy of the credit card issuer bank, the charges are very high for late payments. If one wants to draw full benefits of the credit card then all the guidelines and schedule of charges of the issuer bank and changes taking from time to time have to be read carefully.
    Regards,
    Ashok Goyal

  • #421853
    I think those who has credit cards are tend to be frequent buyers and end up buying those items which are not even planned or thought. That means in the garb of having credit cards, our purchasing power increases and we are forced to shell down what ever expenses made. On the other hand one need not carry the cash and many shops are accepting the credit cards across the counter. That is the main advantage.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #421857
    The credit cards are quite useful as long as they are used properly. We need not carry much cash while shopping or on a journey. One major advantage is that we get credit without paying interest for a minimum of 20 to 50 days.
    " Be Good and Do Good "

  • #421861
    Credit Cards help us to buy our requirements without holding ready cash.

    There is a wait period(credit period) for us to make the money back to the credit card institution.

    Prudent and well calculated use of credit cards can be 'having the cake and eating it too" type benefit.

    Some credit card institutions also give reward points, cash back, incentives etc. If properly utilised these bring gains.

    But the disadvantage is - if one does not have the will power to resist impulse buying then one can end up in unwanted purchases.

    Not paying the bill due amount in full within the due date will entail extra interest which is very high in comparison to some common bank loans.

    Uncontrolled or not prudent use can lead to debt trap.

    But credit card with a valid limit is a confidence booster especially one is on travel and tour.


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