The Pros And Cons Of Owning Your Own Credit Card

There are various ways of borrowing money from money lenders like opting for a cash loan, credit card loans, etc. It is better to have a line of money that can be borrowed during emergencies. For this reason, credit cards have become an indispensable part of many people’s lives.

Possessing a credit card has its advantages and disadvantages. You can meet a person who manages their credit card bills properly and can also meet someone who is drowning in credit card bills.

Credit cards should be used wisely to build a good credit score. Timely payment of credit card bills will not only increase your credit score but will also help in attaining higher credit limits. Read on to know some of the pros & cons of owning a credit card.

Pros Of Owning A Credit Card


Credit Access

Credit cards allow their users to have easy access to credit. A credit card comes with a limit that is informed to the user in advance. You can access the amount from your credit card whenever you want. You don’t have to stand in queues to submit your loan application by owning a credit card.

Building A Credit Line 

A credit card offers you to build a good credit history. A good credit history with the timely payment of loans will help you in increasing your credit score. A credit score of 700 and above can be considered good in India.

Banks and other financial institutions use credit scores and credit history to measure a person’s creditworthiness. Maintaining a good credit history will help you in getting future loans with banks easily.

Owning a credit card is not a big deal, but using it wisely is not everyone’s cup of tea. On-time payments and a good credit-usage ratio can help you in building a good credit history and score.


If you want to invest a huge amount of money in something but don’t want to drain all your savings, you can opt for a credit card loan with payments in EMIs (Equated Monthly Instalments). You can pay the amount in instalments with less financial pressure.

However, you have to pay the interests included in the EMIs every month. One should research the available credit cards and should choose a credit card that charges lower interest rates. It is easier to pay the sum in EMIs rather than opting for a personal loan.

You can opt for a Stashfin Credit Card Line that is simpler than a traditional credit card. You will only pay interest on the funds accessed by this card which enhances the transparency. The Credit Line Card offered by Stashfin requires less application process and documentation.


Various credit cards offer you cashbacks or reward points on the usage of credit cards. The reward points offered by lending firms can be redeemed for various benefits like paying bills, shopping, travel, etc.

You can also get a discount on various goods and services if you pay for them using your credit card. Collecting incentives/rewards can ease your financial burden and will also make you a trusted customer.

Interest-Free Period 

Most credit cards offer an interest-free period during which you will be not charged any interest. If your credit card bill during the interest-free period, you will pay only for the amount borrowed.

However, interest-free periods and usually less and offered by only a selected credit card company. Owning a credit card will make you eligible to capitalise on flexible repayment plans.

Record Of Transactions 

Credit card users receive a detailed monthly statement of all the payments made via the credit card. Besides easy reconciliation of transactions, it also helps in analysing your expenses or in budgeting.

You can also raise a dispute for any unauthorised transaction mentioned in your monthly statement. Credit cards also have strong safety measures that secure your money. Many credit cards also provide insurance for card purchases in case of lost or stolen.

Cons Of Owning A Credit Card 

Hidden Costs

A lot of people using credit cards tend to pay only the minimum due amount displayed. It is a trap due to which you will end up paying more interest. The minimum due amount is only for continuing to receive credit card services.

It may seem easy to pay the minimum due amount but will add up to a large sum of money over time. Besides the minimum due trap, there are a lot of other hidden charges of credit cards. Some of the credit card charges are late payment fees, processing fees, renewal fees, joining fees, etc.


Credit card fraud is one of the biggest threats that a user is vulnerable to. With advances in technology, new ways of money theft are being introduced. You should not make suspicious/unauthorised purchases by your credit card to avoid becoming a credit card fraud victim.

Higher Interest Rate 

When you are unable to pay your dues on time, you will have to late fees. Also, the due amount is carried forward and interest is applied to it again. This can build a huge sum of interest rates in the end making it miserable for the credit card owner.

Owning a credit card also comes with some basic responsibilities. The timely payment of your dues is a responsibility one has to follow to avoid being submerged in interest rates.

Overusing A Credit Card 

Paying for your needs with a credit card will not affect your bank balance. It may sound lavishing in starting but in the end, you will have to pay for it. Many people tend to spend more via a credit card than they can repay.

One should be aware of their spending and should adopt better financial habits to stay out of trouble. A credit card should be used for emergencies, not for enjoyment.

In A Nutshell

It depends on the user how a credit card is used. Misusing a credit card will hamper your credit score and your creditworthiness. If you do not require a credit card for daily expenses, it is better to opt for a cash loan for any emergencies. You can also opt for the simpler credit card offered by Stashfin to avail of multiple benefits. Start using a Stashfin Credit Line Card!

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