Disadvantages Of Credit Card | What Is Credit Card & How To Use

disadvantages of credit card, advantages and disadvantages of credit card, what is credit card, what is debit card, benefits of credit card in india

Whenever you go to a market to issue a card you will find two types of cards Debit card and Credit card. Now i will tell you the advantages & disadvantages of credit card. But first of all we should know the difference between Credit card and Debit card.

DEBIT CARD VS CREDIT CARD

what is credit card, what is debit card, benefits of credit card in india

DEBIT CARD is a plastic electronic card which contains the money which is kept at our home but we usually keep that money in our bank saving accounts. After that the bank issues a plastic card called as debit card . With this card we can transfer the money and the money will be automatically deducted from our bank accounts. Debit card only contains the money which is stored in  our bank account. But when it comes to the use of  Credit card it is different from the Debit card.

disadvantages of credit card, advantages and disadvantages of credit card, what is credit card, what is debit card, benefits of credit card in india

CREDIT CARD is also a plastic electronic card but here we can say we are taking loan from the issued bank. The loan amount depends on the limit of the card it can be 50k to 1lac. To some extent it works like debit card here we can also transfer the money and the money will be deducted from the loan amount. But we need to pay the money back to bank as per the bill cycle.

IT ALL DEPENDS ON YOU WHICH CARD YOU WANT TO USE – CREDIT CARD OR DEBIT CARD.

DISADVANTAGES OF CREDIT CARD

what is credit card, what is debit card, benefits of credit card in india

  • The bank do not issue credit card to all the users . Firstly they will ensure that can you repay the amount. What is the source of income?
  • The issued credit card has a limit so that you can not exceed the amount.
  • The interest rate are very high. Means if shop for Rs10000 and you are not able to pay it in the bill cycle. So this is the situation where bank charges you a lot of interest it can be 30% or 40%.
  • Lots of hidden charges in between the bill cycle.
TIP: Use the credit card for only emergency purpose only .

I personally suggest you not to shop from credit card . As life is full of tensions then why to take one more tension of bill of credit card . So shop using debit card because it has no disadvantages like credit card.

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