In the era of developing technology and the desire to reach customer needs, banks offer us various types of products that are designed to simplify our lives and increase the chances of fulfilling our dreams of a new car, apartment or RTV equipment. For this reason, on the financial market we can observe a flood of newer and newer banking products.
One such tool is a credit card, which is currently extremely popular. In today’s article, we’ll look at a credit card, present the pros and cons of using it, and try to make a clear conclusion about whether this product is useful and worth your interest.
If you want to define a product like a credit card, the easiest way to do this is to list the differences between the debit card and the one mentioned above.
A debit card is usually issued additionally if you have a bank account to operate it and make various transactions, e.g. by paying for purchases in a hypermarket or withdrawals from ATMs. However, we must have our own funds on the account. In short, we have no money – we will not pay (although there are still debits, but this is a topic for a separate article).
It is different with a credit card. It is an independent and independent product. To have a credit card, you do not need to have a personal account in the bank. Moreover, de facto, we can manage funds that we do not have and which do not belong to us. Of course, at a later time you have to return the money to the financial institution that issued the card to us (about possible interest and costs later in the article). Usually, the client and the bank jointly set a limit on the amount that can be used in a given month. As with a debit card, both credit and cashless transactions can be carried out with the help of a credit card.
You can find more information on this subject in our article “What’s the difference between a credit card and a debit card?” .
Like any banking product, a credit card has its advantages and disadvantages. To begin with, let’s try to list those that favor the use of this product:
As we can observe from the above examples, the advantages are enormous, but if we run out of financial control, then any disadvantages can prove drastic and lead us into trouble from which to get out it will be very difficult: