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Credit card – is it worth having?

This question is asked by many owners of plastic badges hidden in their wallets that allow shopping on credit. If you do not have such a card, maybe this article will encourage or discourage you from obtaining it. A credit card has its disadvantages, but it can also make life easier. It’s enough to have a basic knowledge of using credit limits to conveniently make purchases without cash – and on credit.

If someone bought airline tickets online, they certainly know that a credit card is necessary for certain situations. The same can be said by a football fan who wants to pay for the coveted UEFA EURO or FIFA World Cup entry.

Unfortunately, many payments can be made by paying only with a credit card, which is why even the most affluent people sometimes use it – maybe it’s worth having it in your wallet?

The biggest advantage of having a credit card

The biggest advantage of having a credit card

Is that we can shop without having cash at the moment. Instead of borrowing from friends or family – we borrow from the bank. If we refund the money within a specified period (i.e. in the interest-free period), we will not incur any costs related to the interest rate on the loan. It is often the case that the bank itself offers its customers a credit card, e.g. when paying out a cash loan.

Using credit limits can be useful, but there are a few important things to keep in mind when choosing this option. It is true that purchases made with a credit card allow you to use the interest-free period (usually a maximum of 54 – 56 days), but the slightest exceeding the repayment date causes a huge increase in costs.

So if we are going to use the free credit on our card, it is best to return the borrowed money after several days. You should also remember to avoid withdrawing money at ATMs, as the costs may be huge – the credit card should only be used for non-cash transactions.

Banks also charge other fees for using a credit card

Banks also charge other fees for using a credit card

Which includes service charge, annual fee, credit insurance and service costs additional. The more prestigious the card, the higher the costs. Therefore, when deciding on a credit card, you should take into account not only the pros and cons but also the disadvantages it brings.

It is worth reading the agreement concluded with the bank very carefully, then it will be easier for us to avoid unexpected costs and high commissions.

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