A credit card is more then a simple piece of plastic, it is first and foremost a flexible payment tool accepted at 30 million locations worldwide, and if the card balance is paid off every month, then no interest is charged on purchases made so, essentially, short-term credit is granted without the consumer paying any interest.
Among its many features it provides:
1. Access to unsecured credit (no collateral required against amounts charged)
2. Interest-free payment from time of purchase to the end of the billing period
3. Instant payment of purchases, allowing for instant receipt of goods
and services
4. 24/7 access
5. Fraud protection
Advantages
A credit card can:
1. Offer free use of funds, provided you always pay your balance in full,
on time.
2. Be more convenient to carry than cash.
3. Help you establish a good credit history.
4. Provide a convenient payment method for purchases made on the Internet
and over the telephone.
5. Give you incentives, such as reward points, that you can redeem.
Disadvantages
On the other hand, credit cards can:
1. Cost much more than other forms of credit, such as a line of credit
or a personal loan, if you don’t pay on time.
2. Damage your credit rating if your payments are late;
3. Allow you to build up more debt than you can handle;
4. Have complicated terms and conditions;
