“Safer” than cash
This is a case to case basis. It depends on what you are buying, where you are buying and your current financial condition.
- For bulk purchases- credit cards are safer if you are buying items that are costly, something that in cash value would mean a thick set of bills. It is inconvenient and of course, it really puts you in a dangerous situation.
- Online shopping has become a popular form of business and with more sophisticated security tools for verifying cards and protecting its contents, we can say that credit cards indeed are safer. Nonetheless, the apparent risks conventional shopping and online shopping are still rampant so constant vigilance is imperative.
- There are some situations when using credit cards are not ideal. If you are drowning with debt or if you do not really have any money to pay for your purchases, then it is not ideal to use credit cards. The concept of safety is relative to how people use the cards.
They help with your payments and other concerns and some perks
Again, this depends mainly on your current situation. Here are some scenarios when credit cards are advantageous:
- Your paycheck will arrive in the next 3 days but the bill for your cable or internet is for today. You have to pay it or else, you will be cut off. You use the credit card to pay these bills knowing that in just 3 days, you can allocate money for your coming credit card statement.
- You pretty much have a standard amount to pay every month and you do not want to worry about these bills since you want everything automated. Credit cards are perfect for automated payments. You are confident that the cost of your utility bills will not change and you know that you have enough money to pay for them.
- Certain credit cards offer frequent flyer miles. They are some cards that allow cash backs and shopper points. All these points accumulate and can be used to make purchases and not spend any money!
However, credit cards do have some disadvantages that you need to know.
- Credit cards are fun for shopping but for someone who has an aversion or rules especially teenagers or shopaholics, credit cards can lead to massive bills, unplayable debts and could ultimately lead to a bad credit rating and sometimes, even bankruptcy and shame.
- One bad practice is not paying the bill in full. If you do not pay your bills in full, you are risking high interest rates monthly and this will make it tougher for you to pay.
- When shopping online or in various establishments, fraud can be a massive issue. Someone could steal your credit card details and his could mean a massive problem in the long run.
Some disadvantages are consequential and some are due to blatant misuse. It is important to be always alert when using your card. Your identity and your security could be affected by your utter disregard of these disadvantages.