What are the pros and cons of owning/using a credit card?

[Screenwriter]

The bottom line is get the lowest interest rates on cards you know you'll carry a balance on. Cards like Am Express give you 30 days interest free. If you pay off the balance in that time, you've, in essence, gotten a free loan. A card like Am Express has business partners you can earn flying miles or points from from their Am Express associated "stores." (online purchases) Am Exp charges a yearly fee. Is the fee worth the card? According to what you earn FROM the card. Don't let a card fool you with "points." If a card has a high interest rate, 18% or more, can alter your rate, (raise it) if you miss a payment, charge you an additional fee if your payment is late (usually like a bank bounced check fee... around $40) this isn't a good fit for first-time users who commonly are busy young people who might forget a payment, be late etc. They're, ahem, BANKING on this... There are other cards, like Discover, that charge no yearly fee. Some, might be Citibank or others, charge no LATE fees. But remember, they can make up that no late fee charge if you carry a high balance and high interest rate. A major credit card is a great convenience. AND if you have a good payment record, you can negotiate for lower interest rates. The best combo is low interest, good perks, no late fees, no yearly fees. Of course the 0% intro interest for 15 months is another free loan. But only take out these cards with a payment plan for whatever you're charging. Not just to rack up charges. Get ONE major card. Easier to obtain: department store cards for life basics like Macy's, Dillards, small local boutiques where the merchant knows you, gas cards. These ALL build up your credit scores. As does paying off school loans. Weigh what's important to you. These should be yearly fees, interest rate, late fees, how often your interest rate can be lowered while you have the card. Make a pros and cons list with the cards you're considering before you make your choice. Then as you use the card, see if it's paid off to have it. Test drive another and so on.

[LovelyFlower]

The benefit is obviously building great credit & credit is everything. Speaking for myself with my American express charge card yeah the annual fee is $250 but the point system is basically paying the card off itself along with great benefits. The American Express Gold Card is amazing in my opinion. You
Earn 4X Membership Rewards points when you dine at restaurants worldwide & 4X Membership Reward points at grocery stores , 3X Membership reward points for flights & the points add up to money don’t forget you also get $120 dining credit & $100 airline fee credit that adds up to $220 total of benefits so you really are paying $30 for the card when you think about it as long as you are using your benefits it definitely worth it & If you spend a lot of money it is a MUST because the card pays itself off basically along with rewards. It doesn’t get better than that.

[egarcia1360]

The key to using a credit card is to simply not spend money you don't have. Regardless of your credit limit, limit your spending to a certain portion of your budget per paycheck and only use what you know you can pay off in full. Essentially, treat it like a debit card and you'll be fine. Make sure to review your finances regularly; while you're checking up on your balances to keep them healthy, verify that all the activity on your card is legitimate, and check your credit scores. Many cards have no annual fees and generous bonuses, so you can actually get paid to borrow money!

Basically, the main benefits are building your credit score and getting cashback & other benefits, and the only drawback is that it's very easy to lose track of your spending if you're not careful.

All in all, I would highly recommend getting one as long as you trust yourself to be responsible with it.

[oldguyincanada]

We do most of our spending on our credit cards, then pay them off completely each month. We don't pay any interest, collect reward points, and avoid bank fees on our bank account due to remaining under 10 withdrawals a month.

In an emergency, our credit card limit is collectively something like $30,000, but usually the monthly amount used is under $4000.

[AndreaTV]

Having one for getting a credit score is useful.

If you know you won't be able to control your spending if you go out with it, get one but cut it up so you can use it for, for example, booking a holiday over the internet but can't splurge at the shops.

ALWAYS pay off the full amount each month - the interest rates are punitive if you don't. If you need to borrow to get something like a car, arrange a loan through the bank.

[Saville_Row]

As long as you understand that is not an extension of your salary, you'll be fine. Be sure to pay the balance each month. Building up your credit will give you benefit over time. For example, it will unlock credit for a car, a house, credit card rewards (points, cashback, travel miles, etc).

[GoodGuyBreakingBad]

Pros - Credit card can increase your credit score
but make sure you make all your payments on time
make more of a payment than they ask from you
never miss a payment cause that looks bad
pay off as much in advance as you can

Cons- Credit cards can ruin your credit score
if you fail not to pay them as requested
if your Credit card goes to charge off than
this will lower your credit score

[Supermosh1990]

Do your research on the credit card and make sure you have a way to pay it off (preferably a job) , don’t buy too much, and never miss a payment.
pros:
-easier way to make purchases.
-good way to build up your credit score (which is key to help you get a loan of any kind) .
cons:
-can hurt your credit score (if you fail
to make payments).
-you have to pay the company back the money you spend.

[rockrewls]

Pros: Required to book hotels, plane tickets, good for emergencies.
Con: if abused will land you in a pile of debt you can't repay or have a very hard time repaying.
If used to pay for product and paid off every month can be fine if managed properly.

[Jjpayne]

You did say building a credit score and I'd agree that's a pro, a con is that maintenance is required to keep it open. A savings can just sit and make money with a credit card loses money over time

[GOOSEBOY78]

Good: easy access to money when you need it. some cards have limits.
Bad: higher interest rate than a bank loan. can be easlily stolen, mis-used etc

[Ianto]

One option is to get a credit card but arrange that each month the full balance is paid from your bank account. All the convenience with less risk of building debt.

[TheAteam1978]

American Express. Credit cards can make or break you but if you have no credit to you will never be able to own anything

[Avicenna]

The only con is that it makes it easy to spend money you don't have

[Unit1]

I'll let Roger do the talking, that I agree with 100%https://www.youtube.com/embed/v6zgmhsCLnc

[DizzyDesii]

I refuse to get one. CASH MONEY

[Navarro26]

Swipe that credit card baby!!