Credit not as great as you would like?

Use credit cards wisely, late payment may increase problems

Credit cards have become common in today’s time. A large number of credit cards are being given by banks to their customers. Credit card is a type of personal loan. Which you can use from shopping for goods to paying bills. Many times there are also discounts on credit cards for online purchases. But credit cards have both advantages and disadvantages. 

Credit card advantage 

• You can pay by credit card by making purchases in excess of the balance available in the account. Which you can return to the bank later.
• You get reward points for using credit cards.
• Also provides you complimentary service on credit card. Airport lounge access etc.
• If you are paying the money taken by credit card on time, then you civil point gets better. Due to which you can easily get benefits in future loan etc. 

Disadvantages of credit card –

• We start buying more than we need.
• If you do not pay on time, your credit score can go down.
• There is an annual cost of the credit card.
• Late fee also has to be paid for the delay of payment.

What is the expert’s opinion – 

Sudhir, co-founder of Credit India, says, “Credit cards can be taken advantage of while shopping if used properly. But if you do not return the money to the bank on time, then it can also cause huge losses. In addition to all this, there is a risk of fraud in credit cards.