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Pros and cons of credit cards. Advantages and disadvantages.

Almost everyone has credit cards these days. It is much more convenient to carry out various financial transactions with them, they do not take up much space in the wallet and there is no longer a need to carry cash with you.

Let's take a closer look at what's wrong with credit cards.

The process of obtaining a credit card at a bank is practically no different from applying for a consumer loan, but the documents are much less necessary.

Banks set age limits for clients, so only an adult can get a card and the client is under 75 years old.

Cons of Credit Cards

Credit cards have pros and cons, while older people are not particularly fond of this payment instrument precisely because of the presence of many shortcomings. Are they serious?

Fraudsters have gotten a lot more sophisticated lately, so credit card hacking is no longer a rarity.

This is one of the biggest reasons why people don't really trust this method of storing cash. But in most cases, the owner of the credit card becomes the culprit for the fact that his card falls into the hands of intruders.

The biggest stupidity is to write your pin code directly on the card or put a piece of paper with it in your wallet. It will be possible to say goodbye to the money in case of loss of the wallet immediately.

Another disadvantage arising from this can be called a long process of plastic recovery. So in case of blocking, you will have to wait at least 2 weeks until a new card is made.

Money flows very quickly

According to psychologists, the main disadvantage of credit cards is the psychological aspect.

Firstly, many people agree to their registration, having heard tempting offers from banks about the interest-free use of credit funds and the absence of the need to pay for plastic maintenance.
Secondly, keeping track of your spending with a plastic credit card in your pocket becomes much more difficult. You can always use borrowed funds from the bank, as a result of which the client himself drives himself into a debt hole, without even really understanding where the debt came from.

In general, these are all the pitfalls of credit cards that a borrower will have to face if he is careless about using this payment instrument.

And finally, the most serious disadvantage of plastic is the high interest rate for using credit funds. Usually, the percentage is higher than with a standard consumer loan, so you need to be responsible for drawing up a contract for receiving plastic and carefully select a lending program for yourself.

Useful stuff:

Cards also have advantages: this is a grace period, the competent use of which will allow you not to pay interest on borrowed funds, the opportunity to receive bonuses, the security issue is also very acute, so that all operations today are carried out with the need to enter a PIN code, as well as the client on mobile receive SMS notifications.

Let's explore the benefits of credit cards in more detail.

Get her fast. There are personalized credit cards, plastic such as Platinum and Gold, of course, in order to receive them, the user will need to have a good credit rating, enjoy the loyalty of the bank and prove their solvency with the appropriate package of documents.

But if we talk about a simple credit card, then you can get it in just a couple of hours.

One of the cards is simply tied to a specific loan agreement, which the client signs and voila - he is already the owner of the plastic.

In some cases, the client may be required to have a driver's license, income or employment certificate, but in general, you can get a card on the day of the application without having to collect a package of papers.

You can use all the benefits of the revolving line of credit and the grace period. Every time in case of urgent need, you do not need to run to the bank with a pile of papers and fill out an application for a loan. A client who has received a credit card can use it an unlimited number of times until its validity expires and is not required to notify the bank of the purpose of using the money.

As soon as the card debt is repaid, the user can again at some point use the borrowed money and repay the debt. If a number of conditions are met in the process of using borrowed funds, there is no need to pay interest for this.

Bonus accrual and interest-free period

Non-cash payments within the grace period are carried out without any interest. Usually the grace period is from 30 to 90 days depending on different banks.

Its use can be carried out with some restrictions, so all the nuances will need to be further clarified with the issuing bank.

You can receive bonuses, discounts and use the cash-back program. Not every card allows its owner to receive a certain part of the money (percentage from the purchase), but only those on which this service is indicated.

The conditions for its provision may vary from bank to bank, but on average, from 1 to 5% of the purchase amount is returned to the client's bonus account. This will allow you to recoup some money, for example, for the annual maintenance of the card.

Bonuses are also accrued when a person makes purchases at the bank's partner outlets (cafes, restaurants, pharmacies, etc.). A list of these institutions can be found directly on the bank's website. For each purchase, a certain number of points are credited to the card balance, which, upon reaching a certain amount, can be exchanged for a discount. More purchases - more bonuses.

Modern methods of account management

Availability of a wide network of ATMs, mobile banking options and managing your account online.

Any self-respecting bank has already placed in every city a lot of ATMs of its network, in which users can easily and quickly withdraw cash, paying a minimum commission for this or without it at all.

More advanced users can successfully perform money transfer operations, balance checks, etc. using mobile banking or through a personal account on the bank's website.

So the security of plastic cards increases several times, because you can always monitor the status of your account and immediately see suspicious activity.

Finally

Credit cards have a lot of advantages, but there are also disadvantages. If you use plastic correctly, you can significantly increase the safety of all operations, making them profitable for yourself, so that the disadvantages will simply be invisible.

Pros and cons of credit cards. Advantages and disadvantages.

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