Decoding the two aspects of credit cards: Balancing convenience and risks
Though these plastic cards can be a boon in lending financial help, they can also become a bane if not used judiciously
- Sep 13, 2023,
- Updated Sep 13, 2023 3:06 PM IST
Credit cards can be perceived as a lifesaving option in times of financial crunch, providing the convenience of easy access to funds anytime and anywhere. They can help build a credit history, reward use with cash back and points, and give a helping hand with the necessities of life. However, as much as these rectangular pieces of plastic can be a boon in lending financial help, they can also become a bane if not used judiciously, leading to numerous risks.
Credit cards come with various fees you may need to be aware of, such as annual fees, late payment fees, over-limit fees, and foreign transaction fees. It is crucial that you go through the terms and conditions of your credit card agreement to understand these charges and know exactly what you will be expected to pay when using it.
Thus, one must educate oneself about the responsible use of credit cards to mitigate these risks.
Credit cards can be perceived as a lifesaving option in times of financial crunch, providing the convenience of easy access to funds anytime and anywhere. They can help build a credit history, reward use with cash back and points, and give a helping hand with the necessities of life. However, as much as these rectangular pieces of plastic can be a boon in lending financial help, they can also become a bane if not used judiciously, leading to numerous risks.
Credit cards come with various fees you may need to be aware of, such as annual fees, late payment fees, over-limit fees, and foreign transaction fees. It is crucial that you go through the terms and conditions of your credit card agreement to understand these charges and know exactly what you will be expected to pay when using it.
Thus, one must educate oneself about the responsible use of credit cards to mitigate these risks.