Pros and Cons of Credit Cards

Tired of feeling eyes burn into the back of your head as you count out change in the checkout line? Credit cards are quick and convenient — and an essential tool in building credit. But as with any financial matter, it’s important to consider the pros and cons of credit cards before you ditch the coin purse. Disadvantages of credit cards include the potential to overspend and rack up credit card debt. The same can hold true for credit cards vs. debit cards. 

It helps to know your goals when determining which piece of plastic you’ll add to your wallet (or not). So let’s break down the pros and cons of credit cards, including how a credit union credit card, available through your local credit union, can help you get the most ‘pros’ out of your credit card experience.

Pros and Cons of Credit Cards

Pros of Credit Cards

Credit card use is a significant factor in determining a person’s credit score, and developing a solid credit history helps to build your credit score — the path to better interest rates on mortgages, cars, and other loans. Other advantages of credit cards include extra incentives and bonuses, such as rewards programs, low introductory rates, and other card-specific benefits.

Here are some other advantages of credit cards:

Cons of Credit Cards

Knowing the advantages of credit cards, you can weigh their value against the disadvantages of credit cards. Credit card cons range from a brief period of inconvenience when replacing a lost card to more long-term consequences stemming from over-use. 

Consider these cons of credit card use:

Alternatives to Credit Cards

Just because they are ubiquitous doesn’t mean credit cards are your only option, of course. Here’s how several other forms of payment stack up against credit cards. 

Further Resources on the Pros and Cons of Credit Cards

Still asking yourself, “Should I get a credit card?” Check out these avenues for additional information:

Weighing the pros and cons of credit cards is a wise decision. And, if you find yourself putting more ticks in the pro column, be sure to consider the often industry-leading perks of a credit union credit card (like lower rates and top-notch rewards), available through your local credit union.

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Did you know? 

Credit union credit cards often come with lower APRs and other fees than you’ll find from most banks. And, while a bank is unlikely to reconsider a candidate for a credit card once they’ve been turned down, credit unions will frequently re-evaluate an applicant, thanks to their community-focused service model that considers individual circumstances.

Find the right Credit Union for you

There are more than 5000 credit unions to choose from across the U.S.