Credit card pros: - Introductory offers - offering low or no interest rate over an initial period
- Short term borrowing - credit cards are often cheaper than personal loans. Interest is only payable on remaining balances rather than the full loan amount, and you have total flexibility in payment
- Safe purchasing - allowing you to buy products and services on the high street or online, often with an extra guarantee
- Flexibility - the ability to pay off varying amounts each month dictated only by a minimum payment stated by your card issuer
- Other benefits - credit cards often have additional benefits to cardholders, such as travel insurance, card protection, cashback, holiday discounts or in-store discounts for highstreet branded cards
Credit card cons: - Difficult to control - some people have difficulty controlling spending habits with credit cards. Make sure you have the money to pay at the end of the month to avoid interest charges
- Affects credit history - your spending habits on credit card make up a major proportion of your credit history. Use it wisely!
- Cash withdrawals - often tempting in an emergency, but can be expensive depending on your card issuer
- Small card limit - often the maximum amount you can put on your credit card isn't comparable to the amount of money you could raise through other financing
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