Credit Cards

Things you must know before Applying for a Credit Card

Credit cards are a popular form of payment and borrowing that offer a wide range of benefits and drawbacks. On one hand, credit cards offer convenience and purchasing power, both online and in-store.On the other hand, credit cards can lead to high levels of debt and financial stress if not used responsibly. Overall, credit cards can be a useful financial tool if used responsibly, but it is important to be aware of the risks and to use them in moderation.

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AmEx Platinum

Here are a few pros and cons you must know before applying for a credit card:


Convenience: Credit cards allow for easy and quick purchases, both in-store and online.

Building credit: Responsible use of a credit card can help to establish and improve a person’s credit score.

Rewards and benefits: Many credit cards offer rewards, such as cashback or travel points, as well as purchase protections and other benefits.

Emergencies: Credit cards can provide a source of funds in case of unexpected expenses or emergencies.

Renting a car or booking a hotel: Many car rental companies and hotels require a credit card to reserve a vehicle or room.

Online purchases: credit cards are the most common form of payment for online purchases.

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Travel benefits: Some credit cards offer perks such as travel insurance, free checked bags, or lounge access.

Building credit history: Consistently making on-time payments and keeping credit utilization low can help establish a positive credit history.

Purchase protection: Some credit cards offer purchase protection, which can cover the cost of an item if it is lost, stolen, or damaged within a certain time frame.

Sign-up bonuses: Some credit cards offer sign-up bonuses, such as cashback or rewards points, for opening an account and meeting certain spending requirements.


Debt: It is easy to accumulate high levels of debt with a credit card, especially if the cardholder is not careful with spending or makes only the minimum payment each month.

Interest: Credit cards often have high-interest rates, meaning that carrying a balance can be expensive.

Fees: Some credit cards have annual fees, late payment fees, or other charges that can add up over time.

Risk of identity theft: Credit cards are at risk of fraudulent use, so it is important to keep them secure and monitor account activity regularly.

Temptation to overspend: The ease and convenience of credit card spending can make it easier to overspend and rack up debt.

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Credit Card Online Shopping

Read More: 5 Best Credit Cards 2023

Fraud: Credit card fraud is a common issue, and it can be difficult to get your money back if your card is used fraudulently.

Credit score: Late payments or high credit utilization can negatively affect your credit score.

Addictive: Overusing credit card can be addictive and make you dependent on them for everyday expenses.

Minimum payments: Making only the minimum payments on your credit card balance can lead to paying off the debt over a longer period of time, resulting in paying more in interest over time.