Financial Literacy for Everyone
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Pros & Cons

As with anything there are advantages and disadvantages to using credit cards. Your informed use of credit cards begins with understanding these.


Immediate Access: The ability to buy planned or unplanned items immediately. Credit can help with an expensive, unexpected emergency and give you the flexibility to pay it over time.

Security: Lose cash, and it's gone. Lose a credit card, and it can be cancelled. Also, if you report a lost or stolen card promptly, you're protected against its unauthorized use.

Record Keeping: Your credit card statement is an itemized list of your monthly expenditures, which can be helpful managing your budget by allowing you to track your purchases and spending behaviour.

Convenience: More convenient than cash or cheques. Makes it easy to buy things over the Internet or telephone. Accepted almost everywhere you go around the world.

Bill Consolidation: Bills can be paid automatically via credit card, consolidating several payments into a single lump sum.

Rewards: Offers reward points, which you can redeem for products or services, such as free travel. It can also help you establish a credit history and earn a credit rating.


The main disadvantage to credit card usage is its cost to you in interest and fees. Wise use of credit means understanding those costs and acting accordingly. Keep track of your spending to ensure that you can repay your credit card bill in full when it comes due each month. Credit cards offer interest-free loans to those who pay off their entire balance every month, however, those who do not will incur interest charges. And, if not managed properly, credit card use can get out of hand – so, it's important to make sure you use your credit card wisely.