Are Credit Cards Worth It?

credit card
Are Credit Cards Worth It?

Yes, if you are a savvy person who is good with finances and know how to use credit cards to your advantage, then having a credit card is definitely worth it. It can be a useful tool in managing your personal finances if you can be disciplined in repayment and manage your borrowing responsibly.

Is credit card worth it?

In today’s age Indians are very thrifty and save money all their life for rainy days. Same in today’s time people of western countries believe in today and only they want to enjoy in present.

In the olden times where cash used to be king and the world used to do most of its transactions with physical cash/cheques, then came the innovation of credit cards, it allows you to make big purchases that you otherwise could not do with cash. In today’s time people are using cash and credit cards for their daily purchases.

It can be a useful tool in managing one’s finances if you can be disciplined in repayment and manage to borrow responsibly. Getting a credit card can be a great way to get credit and finance purchases. It all depends on your personal situation.

Opening a credit card is a big decision that should be based on your current ability to pay the fees and the positive impact they will have on your credit score and finances, not a welcome bonus or unique card design. If you have enough money to repay the loan and want to use the credit card judiciously for your daily expenses, then you can enjoy the credit card.

The Pros And Cons Of A Credit Cards

Credit cards have become an essential life tool these days, especially among young adults. is a credit card worth it? If you too are unable to decide is it good to get a credit card? or eliminate them altogether, consider the pros and cons and decide whether you really need one or not.

The Advantages of Credit Cards

  • In today’s time, everyone does not want to carry cash all the time and it is not possible and convenient to withdraw cash everywhere, so it helps to be cashless.
  • Whenever you make a big purchase, you need to pay a lot of cash at once, but it is very easy to buy expensive products and services with a credit card. The huge amount is not spent in one go, rather you have to pay the amount in installments (EMIs) with zero interest.
  • If your card is stolen, the liability is guaranteed by the bank whereas on the contrary, if cash is lost or stolen, it is very difficult to get the money back.
  • Whenever we make any purchase with credit card, we can track our expenses, this helps us in budgeting and making effective plans.
  • It is completely safe to use it. If you are a frugal credit card user, you need not worry about extra charges and undue interest. All you need to do is repay your loan on time and maintain a good credit score.
  • There are many rewards offered by the credit card issuer which include discounts and cash back.
  • It can help you deal with cash crunch in case of emergencies like hospitalization, or going out of town for any urgency.

Disadvantages of Credit Cards

  • If your requirements are high but your income is low as well as credit history is weak, you may not get a credit card.
  • There is always a danger of overspending through credit cards. Many times it happens when we start spending more than necessary. We go on buying our wants instead of our needs, which has serious consequences.
  • Whenever we borrow through credit card it costs a lot. There is no guarantee that the rates will remain stable, it may increase unexpectedly which may lead to drastic cuts in our budget and expenses.
  • When you spend a huge amount to buy something and are unable to pay the subsequent EMIs, or miss any of them, you are forced to pay with additional interest.
  • Credit cards are also a bit difficult to maintain, for this you not only need to have a good credit score for the bank to allow you to borrow, but also pay an annual fee to continue serving you with the rewards the wanted.
  • Rolling over credit card debt by paying only the minimum amount due will land you in debt trap as the interest rates are very high which ranges from 30 – 45% per annum.
  • When you are unable to repay the credit card debt, then the debt collectors will harass you in every way.
  • A bad card payment history can adversely affect your loan eligibility as it is reflected in the CIBIL report, which all banks refer to before considering a loan or credit card application.
  • The recovery process can be intimidating if you fail to make a credit card payment. They keep calling you and your family members at odd hours and sometimes even resort to unethical methods of calling your frequently called contacts by getting hold of your post paid mobile call records.

How Do I Choose The Right Credit Card?

credit card
How Do I Choose The Right One ?

Whenever a person thinks about getting a credit card, the first question that comes to mind is which credit card would be best for me. Here are some important factors to consider while choosing the right credit card for you:

Credit Score: Different credit cards have different credit score requirements. Make sure you apply for a card that has a good chance of getting approved based on your credit score.

Annual Fee: Some credit cards charge an annual fee for using the card. If you don’t think you’ll use the card often, or if you have good credit and can qualify for a card with no annual fee, it may make sense to go with a card that doesn’t charge this fee. does.

Interest rate: If you are planning to carry a balance on your credit card, then the interest rate is an important factor to consider. Look for a card with a low interest rate to save money on finance charges.

Rewards: If you plan to use your credit card for everyday purchases, you might want to consider a card that offers rewards for your spending. Look for a card that offers rewards that match your spending habits, such as cash back, points or miles.

Perks and benefits: Some credit cards offer additional perks and benefits, such as extended warranties, price protection, or travel insurance. Consider what types of benefits you value and look for a card that offers them.

Terms and Conditions: It is also a good idea to compare offers from multiple credit card issuers to find the card that best meets your needs. Be sure to read the fine print and understand the terms and conditions of any card you’re considering before applying.

Also Read – Should I Invest In Crypto?

When Should I Get A Credit Card ?

If you are above 18 years of age and your monthly expenditure is always less than your income. If you have a consistent history of paying your bills – such as rent and utilities – on time, consider getting a credit card. Also, if you feel that you can handle credit card responsibility and want to build your credit history, then opening a credit card can be the right step for your financial future. But if you regularly overdraw from your checking account or borrow money from friends and family, it may be unwise to get a credit card. Also, if you use the credit card irresponsibly, it can lead to high charges and serious damage to your credit score.

Are credit cards worth it?

Frequently Asked Questions(FAQ’s)

Q1. Are credit cards with an annual fee worth it?

It depends on what the card offers you in terms of interest rate and rewards and whether your lifestyle will really take advantage of these rewards

Q2. What is the best way to use a credit card?

One of the best ways to use a credit card is to earn money with every purchase you make. The second best way to use a card is to use it sparingly for small purchases (only as much as you can afford) and limit usage to emergencies.

Q3. Does canceling credit cards affect your credit score?

Yes, it can affect your credit. Canceling a card can reduce your account history and lower your overall credit limit. Both of these can hurt your credit score. When you don’t need the card, it’s best to keep it anyway.

Q4. Are credit cards good for your credit score?

Using a credit card responsibly, such as paying on time, keeping low balances and using only a small percentage of available credit, can help improve your credit score by demonstrating responsible credit usage and building a good credit history. Misuse, such as missing payments and carrying high balances, can hurt your credit score.

Q5. Is it smart to get a credit card?

Getting a credit card can be smart if used responsibly and within an individual’s means. A credit card can provide rewards, benefits, convenience, and help build credit. However, it’s important to carefully consider the potential risks and make sure to use the card responsibly to avoid overspending and incurring debt.

Q6. Are credit cards good for building credit?

Yes, credit cards can be good for building credit. By using a credit card responsibly, such as making payments on time and keeping balances low, individuals can establish and maintain a good credit history, which can have a positive impact on their credit score.

Q7. Do credit card companies have insurance for unpaid balances?

Credit card companies do not typically provide insurance for unpaid balances. It is the responsibility of the cardholder to repay the debt incurred through their use of the credit card. Some credit card companies may offer payment protection plans, but these are optional and may come with fees. It’s important for individuals to understand their responsibilities and use credit cards responsibly to avoid accumulating debt.

The Bottom Line

Is it worth it to get a credit card? The answer is very simple, if you are a sensible person who is good enough with finances and want to use credit cards to your advantage, then definitely credit cards can be beneficial for you. Opening a credit card is a big decision that should be based on your current ability to pay the fee and the positive impact it will have on your credit score and finances, not a welcome bonus or unique card design.

I am a Full-time Personal Finance Writer with a passion and cryptocurrency newbie! Learning about Crypto, NFTs, DeFi and GameFi with my research and writing for

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