If you’re receiving a credit card for the first time, you’ve undoubtedly heard about the many cautions against using credit cards. We won’t sugarcoat it for you: credit cards may quickly lead to debt, but only if you don’t adopt excellent financial practices.

There was little to no motivation to use credit cards until they emerged with all kinds of perks and bonuses. Having a credit card, on the other hand, makes a lot of sense nowadays. When properly handled, you’ll be able to enjoy a slew of advantages that cold hard cash won’t be able to provide.

The following are some of the benefits of using a credit card:

1. It is quick and easy to use.

Pay for what you’ve been charged without having to look for cash or coins. A card also allows you to purchase almost anything online. You can use internet banking for your business

2. It is free from germs.

You won’t have to swap filthy notes throughout your purchases if you use contactless payment (tap-and-pay). This is especially critical in the Covid-19 era!

3. It is risk-free

Credit card companies usually give some level of protection for payments made with the card.

4. It enables payment options in installments.

Depending on the supplier, you may be able to purchase large-ticket products with a 0% interest rate.

5. It enables you to make a purchase now and pay later.

We’re sure you already knew this. A credit card allows you to make a large purchase and pay it off later.

6. It supplies you with cash in an emergency.

If you ever need cash, you may use your credit card to withdraw money from an ATM.

7. It’s quite gratifying.

Cashback, points, flight miles, and retail discounts are all options. When you use your card, you’ll receive them.

8. It’s also beneficial to your credit score.

You may truly develop a good credit score if you use your credit card responsibly. Your credit score is the most crucial three numbers in your life, and it affects you in a variety of ways. If you don’t know what it is, you should learn more about it here.

But, to be honest, there are some drawbacks to using credit cards as well:

1. It’s simple to go into debt.

You’re already familiar with this one. It’s exciting to tap and pay for amazing things, but if you don’t keep track of your outstanding amount, you’ll be in for an unpleasant awakening soon.

2. High-cost cash advances

You’ll be charged a high-interest rate (about 17-18 percent) plus a transaction fee if you need to use your credit card and take cash from an ATM in an emergency.

3. You may be a victim of fraud or a con artist.

Even with all of the safety and security mechanisms in place, there are still those out to take advantage of others. It’s critical that you don’t just give out your credit card information to anybody (e.g. card number, 3-digit at the back of card, 6-digit verification pin that comes through SMS).

4. Can have a negative impact on your credit score

Only if you are late with payments or do not pay the entire amount due.

5. There are fees and charges that are not disclosed.

It’s important to be aware of these costs since they may pile up quickly.