Pros And Cons Of Using A Credit Card While Shopping

Some people think credit cards are like little plastic superheroes that can fit in your wallet. At the speed of light, they can help you make purchases, whether from an online business or a physical company outlet without having to carry cash. Some can even provide benefits like earning airline miles, cashback and rewards points. And that’s not all. They also possess the strength to help you build a positive credit history.

Here are some important pros and cons of using a credit card while shopping.

Credit cards are awesome, right?

Well, maybe, and maybe not. Even though credit cards can do all those potentially positive things, they can also wreck your life. In other words, with great power comes great obligation.

Table of Contents


Financial Leverage: You will be able to purchase anything from an online store using your card details without actually paying cash in hand. Most companies don’t accept cash payments like hotels booking sites, car rental, and e-commerce sites.

Secure Purchase: Credit card can secure your purchase if you lost a receipt, damaged or stolen. You can show a credit card statement and also on your behalf card company can vouch for the fact that you actually made the purchase. Simultaneously some card companies also provide insurances on large purchases from your account.

Building PR: It is always important to build good credit history not only during card application but also when applying for loans, rental and jobs too. Using a credit card promptly like making all payments on time without delay will obviously help you build a good credit history and developed strong PR with a particular company.

Emergency: Credit card can sometimes help to resolve unexpected emergencies where you need to expense beyond your budget like medical, fire and severe car breakage.


Interest Rate: First, if you charge more than you can pay off in a given month, you’re going to get hit with interest charges. And if you don’t think that’s a big deal, just know that credit card interest rates in the 20% range are fairly common, and rates with high can cost you serious cash. For example, if a bank charges you $3,000 on a credit card with an 18% interest rate, make only the minimum payment until it’s paid off. And you could end up paying more than twice the original charge and interest costs.

Spend More Money: Credit Cards Company encourages people to spend more money from their accounts that they don’t have. This may seem like ‘free money’ at the time but you have to pay off with certain interest every month on the cash you have obtained.

Fraud: Sometimes you may lose your card or maybe someone steals your card details from web/online and uses them to wipe off their debt. The best thing you can do is to report the case to your card company and they will instantly block for any further transaction.

How to prevent Credit card fraud:

1) If you lose your card report immediately to your native card companies.

2) Never share your card details with anonymous or friends

3) Synchronize cash statement at the end of each month to verify all the charges are yours.

4) Never loan your card to anyone

Conclusion: To avoid these credit card Pros and Cons all it takes is a couple of simple behaviors. First never charged anything on a credit card without having a plan for how you’re going to pay it off quickly. And second, do some researches before you apply for a credit card. Not all cards are created equal. So pay close attention to the fine print to make sure you understand what you’re getting into. In the end, credit cards can be a powerful force for good in your life.

Fawad Malik

Fawad Malik Technology geek by heart, blogger by passion, and founder of, He regularly explores ideas and ways how advanced technology helps individuals, brands and businesses survive and thrive in this competitive landscape. He tends to share the latest tech news, trends, and updates with the community built around Nogentech.

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