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What Is Credit Card – Pros & Cons of Credit Card | Best Credit Card

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Credit Card

It’s hard to deny that a credit card is extremely convenient. Carrying cash is simply inconvenient, resulting in the development of the credit or debit card was such a big revolution. This thin strip of plastic provides great spending capacity with the ease of a single card.

A credit card is comparable to borrowing in that you repay the amounts at a later date. A credit card permits you to initiate electronic transactions for goods and services. Though, even if repayment is not due immediately, you must settle at least the minimal sum outstanding. If you do not pay off your debt in full during the fixed term, you will be charged interest, which will increase the cost of your transaction.

Nevertheless, in order for the positives to exceed the negatives of having credit cards, a specific amount of restraint is required. Before you request a new credit card, here’s what you should understand about credit cards’ pros and cons.

Pros & Cons of Credit Card


Credit is easily obtained.

The most significant benefit of a credit card is the ease with which credit may be obtained. Credit cards operate on the principle of delayed payment which implies you can use the card anytime and settle for the transactions subsequently.

Creating a credit line

Credit card utilization is frequently used by banks and financial organizations to assess a prospective loan applicant’s credibility.

EMI Convenience

You can also opt to pay for the purchases in equal monthly installments, avoiding spending a big sum and depleting your savings account.

Bonuses and rewards

Many credit cards include a slew of bonuses and incentives to encourage you to employ their cards. Among the benefits include cashback and the earning of rewards points etc.

Credit that is adaptable

Credit cards have an interest-free timeframe, which is the period wherein the unsettled obligation is not billed any interest.

Expenditure tracking

A credit card keeps track of every transaction made with the card, and a complete report is delivered with your periodic credit card statements.


Purchase security

In the event of goods damage or theft, a credit card record can be utilized to verify the authenticity of a claim.


Minimum payment trap

The most significant disadvantage of a credit card is the minimum due amount stated at the top of a monthly account.

Hidden expenses

Credit cards seem to be easy and clear at first glance, but they include a lot of additional fees that may quickly add up. Late payment penalties, processing fees, and so on are examples of such charges.

Easy to Overspend

Credit cards may be enticing sometimes to charge all of your expenditures on your credit card and overspend.

High rate of interest

If you do not pay your bills by the due date, the sum is held over and interest is levied, which can be rather high.

Best Credit Cards

Based on the above pros and cons you can select the best credit card for your lifestyle’s needs and achieve the most out of it. In India, there are several credit cards that provide appealing perks such as reward programs, cashback, fuel savings, insurance coverage, travel rewards, and so on. The following are the best credit cards offered in India.

Credit Card Name Benefits
FinBooster: YES Bank Reward Points
RBL Shoprite Credit Card Shopping
IndusInd Bank Platinum Credit Card Lifetime Free Card
IndianOil Citi Credit Card Fuel
Axis Bank Neo Credit Card Cashback, Hotel, Movies
HDFC Bank Diners ClubMiles Card Lounge Access
Citi Rewards Credit Card Rewards
Axis Bank Neo Movie tickets, Shopping cashbacks


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