Credit Cards frequently prove to be a secure and convenient way of paying for goods and services as well as being a flexible form of borrowing.
When you pay for items using a Credit Card the card issuer or bank is effectively lending you money. But with any form of borrowing there are pros and cons to credit cards, but just what are they? Financial news website, http://www.creditwindow.co.uk reveals all:
Pros of Credit Cards
1. Credit cards are a free short-term form of borrowing – as long as ou are able to pay off your balance in full by the due date.
2. Credit cards are a secure and convenient form of payment in the UK as well as on holiday, abroad, especially when buying on the internet or over the phone.
3. Both card issuers and retailers take responsibility for faulty purchases, if you pay for an item with a credit card, that turns out to be faulty or you don’t receive the item(s) for whatever reason.
4. Fraud protection – you won’t have to pay if you are the victim of fraud and a criminal uses your card.
5. Incentives such as cashback and loyalty points when you use your credit card.
6. Credit cards can be used almost anywhere in the World as they are accepted on a global scale.
Cons of Credit Cards
1. You will incur interest if you are unable to pay off the full balance of your credit card at the end of the month and this could prove costly, depending on the rate of interest.
2. The amount spent on a credit card is always capped at a limit so you can’t pay more than you have available to you.
3. If you have a low or poor credit score you may be restricted to the types of credit cards you can borrow. For example, you may be restricted to taking out a credit card with a high interest rate and a low limit of credit.
CreditWindow.co.uk not only offers excellent financial news and advice but also a great selection of credit cards, guarantor loans, payday loans and more.
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