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What are the advantages and disadvantages of having a credit card?
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Advantages:
1. Having a credit card can provide you with access to cash if needed, without needing to carry around large sums of money.
2. Credit cards offer convenience by allowing you to make purchases online or over the phone without needing to carry cash.
3. You can build credit history and establish a positive credit rating by using your credit card responsibly.
4. Many credit cards offer rewards such as airline miles, discounts on hotel stays, and cash back for everyday spending.Disadvantages:
1. If you don’t pay off your balance in full each month, interest charges may be added to your balance. This can quickly increase the total cost of your purchase.
2. The temptation to spend more than you can afford is high when you have a credit card because you do not need to pay for it until the end of the month.
3. If you don’t use your card regularly, it can negatively affect your credit score.
4. If you don’t keep track of your spending, you may end up paying more than you originally intended.