Know The Advantages And Disadvantages Of Credit Card

Hello, in today's article, you will know about what is a credit card and its advantages and disadvantages, if you also use a credit card or if you are going to make a credit card, then you must read this post completely before that in which credit card is used. Complete information has been given about the card, why you should use it, how you can avoid credit card loan debt, let's start

Know The Advantages And Disadvantages Of Credit Card
Know The Advantages And Disadvantages Of Credit Card

What Is A Credit Card?

A credit card is like a plastic card. A credit card is a financial instrument issued by banks, with a pre-set credit limit, which makes it easy for you to do cashless transactions. The credit card issuer determines the credit limit on the basis of your credit score (CIBIL score), credit history, and your income. If your CIBIL score is good then you are given good limits and offers.

So you know what is a credit card as mentioned above, now you know about its benefits -


Know The Benefits Of Credit Cards

Know The Advantages And Disadvantages Of Credit Card

1. With this credit card, you can do online shopping for more than the amount deposited in your account. It does not matter how much amount is in your account.

2. Credit card makes it easy to build your CIBIL score, if you pay this credit card amount on time, then your CIBIL score becomes good. And this increases your chances of getting a quick loan from the bank.

3. If you shop with a credit card, then you are also given some reward points and cashback. These are not enough, they are few, but the more you shop with this card, the more your reward points and cashback increase. And use these reward points to get good discounts

4. If there is any fraud during the credit card, although it happens a lot if it happens and you prove that fraud, then in this case you do not have to charge the bank nor will the bank charge

5. There are many such credit cards in which there is no annual charge, you do not have to pay any credit card fee every year.

6. With this card you can take any item in installments i.e. on EMI. You can get it financed and the EMI amount will be automatically deducted from your credit card.

7. At the end of every month, you get a statement on which information about when, how much, and where you have shopped, this makes it easy for you to make a budget. And you can avoid spending more

Credit Card Disadvantages

Know The Advantages And Disadvantages Of Credit Card

 1. There are many such hidden charges and fees in the policy of this credit card that we are not aware of. And the bank also does not tell us about them and in such a situation, we add hidden charges and fees to the bill we get.

2. If you delay the payment during credit card shopping, then the bank imposes a penalty on us, due to which we have to pay a late fee, which is very high, apart from this, you can pay as much as you can. It will take more time, the bank recovers its money from you with interest.

3. With this, whenever you make a payment on the international website, the bank does not keep its information because the bank only keeps the payment made in the country under its supervision. In such a situation, there is a possibility of fraud in this card from the international website.

4. If you shop more than your credit card limit, then the extra fee is added to the bill and the bank makes the total payment by adding interest and your late fee as per your bill.

5. And if we do not pay our credit card bill on time, then daily interest is charged on the amount of the bill, and this interest increases day by day.

Frequently Asked Questions

Q.1 What are the benefits of having a credit card


  • A good CIBIL score helps in paying bills on time
  • 45 days loan is available
  • Online and offline transactions
  • Get rewards and cashback discounts etc.
  • Can come in handy in an emergency

Q.2 Should I get a credit card?

Ans- You have a good income and you know its entire term policy and you know how to use credit card well, then you must make a card, if you do not know its use, then it can drown you in debt too.

Q.3 which is the best credit card


1. SBI Card Elite Annual Fee: ₹ 4,999

2 . HDFC Diners Club Black Credit Card Annual Fee: ₹ 5,000

3. ICICI Sapphiro Visa Credit Card Annual Fee: ₹ 3,500

4. American Express Platinum Reserve Credit Card

5. Yes First Preferred Credit Card

Q.4 how much interest is charged on credit card

Ans - It is not fixed The interest rate on credit cards usually ranges from 2.5% to 3.5% per month. However, this rate may vary from card to card



You have learned about the advantages and disadvantages of credit cards in this article. A loan taken from a credit card is a kind of loan, keep paying it on time, which will increase your CIBIL score and you can take a loan from a bank and credit card anytime. While getting it made, definitely read its policy including its hidden charges.

I hope you have understood this article about the advantages and disadvantages of credit cards, if you have any questions or suggestions, do comment us and share this article with your friends and family.


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