Why and when is a credit card useful?
For many people it is a difficult decision whether or not to take a credit card. When you travel, it can be very useful to take a credit card. This way it is easier to book a ticket and in some countries it is even possible to pay with a credit card.
Advantages and disadvantages of a credit card
There are some advantages and disadvantages to a credit card. To help you with your decision, we have listed the pros and cons for you.
Credit card benefits:
- Can be used anywhere in the world
- Save points
- Extra credit option
The big advantage of a credit card is that you can pay anywhere with it. You can use this card in any country. So if you have an emergency abroad, a credit card is very useful. With this you can pay for the breakdown service abroad. (Online) shopping with a credit card is also very easy. So if you have enough budget and no debts, it is very handy to have a credit card.
Are you going on holiday soon and do you have a credit card? Then you can read more about taking your credit card on vacation in this article.
In addition, all purchases you make with a credit card are provided with insurance. This makes it even more attractive to apply for such a card.
At most companies, where you can request a credit card, you can take advantage of bonuses and promotions, such as miles.
Extra credit option
If you use your credit card responsibly and repay the borrowed amount within the time limit, this will generate confidence in the company. Because of this, it is often possible to increase your credit or lower the interest. With extra credit you can also make more expensive investments. This way you can buy a new car.
Cons credit card
- Fraud sensitive
- High interest
- PIN costs
- Annual contribution
The security of the credit cards could be better. These are still somewhat susceptible to fraud. You must therefore always be very careful with your data.
The interest that you have to pay for standing in red is often very high. Percentages of 16% are normal.
It is a good idea to withdraw cash with your credit card. Relatively high costs are charged for this. So only use the card to pay immediately.
For a credit card you have to pay an annual contribution to the company. This amount is between 15 and 100 euros.
Of course it is always wise to use a credit card with some caution. With a credit card you can still make that one big purchase and you always have money for an emergency abroad. A credit card can therefore temporarily help you out. Only use this card if it really cannot be otherwise. This way you will get the most benefit from your credit card and you will use it wisely.