A credit card is a bank payment card, which is specially designed for making settlements at the expense of funds provided to the borrower by the bank on the basis of an agreement, within the established limit. This limit is set based on the borrower's solvency.
Advantages of credit cards
• Any client can pay for a product or service without having the required amount.
• The borrower does not pay interest on the use of the limited loan amount. In most cases, the banking institution can only charge its interest on the amount used.
• Protection of funds from theft.
• Possibility of online registration of the card, thanks to which the client saves his time.
• When buying goods, the client protects himself from the consequences of his distraction. When using a credit card, it will be enough for him to check the amount written off.
• You can always temporarily suspend all operations related to the card and thereby protect it from unauthorized access.
• When issuing a credit card, the client can be provided with various discounts and bonuses in accordance with the programs of the banking institution.
Disadvantages of credit cards
• The main disadvantage of using credit cards is the underdeveloped infrastructure and low density of ATM networks. Sometimes it is difficult to pay with a credit card in shops or restaurants.
• Fees for cash withdrawals. This disadvantage is directly related to the previous one. In many cases, cash can still be used to pay for a purchase. For withdrawing funds from a credit card, the bank charges a commission, which varies from the amount issued.
• Safety is also a disadvantage. Cases of theft of funds from user cards are common. It should be noted that in the future, credit cards can significantly strengthen their own positions with the help of the bank's efforts and with state support in the field of cashless payments. At the same time, an ordinary user needs to clearly understand all the advantages and disadvantages of credit cards.
