The credit card has the virtue of making people pay for things in a deferred manner, but so it is not possible to have full control over purchases and thus monthly or weekly outgoings.

Pros and cons of credit card

The advantage of the credit card is that you can Making cashless payments. In addition, the consumer is protected and reimbursed in case of demonstrable fraudulent transactions. Foreign use is guaranteed for credit cards, which allow you to make expenditures even when you do not in fact have the relevant amount.

Disadvantages include, sometimes, a annual fee to pay (not for all cards, however: you need to check with your institution) and the risk of incurring fraudulent transactions, such as the cloning. In addition, you should always check that you have on the account enough money When there is a monthly charge for purchases made. Otherwise, you risk the payment of interest and reporting it as bad payer.

Finally, withdrawing with a credit card that does not also have an integrated ATM function involves payment of a fee, which is usually quite high: the costs vary according to the specific terms and conditions stipulated in the contract with your bank.

Using a credit card, therefore, definitely has several advantages, especially there is no need to carry cash with you. But there is a not insignificant problem, especially for those who do not have a lot of resources: you spend a lot more, and this leads to not controlling your finances well.

The main difference and how to choose

Here is the main difference between credit and debit cards; knowing this is crucial because it helps us decide which of the two to choose:

If we are careful, money-saving people who are used to planning purchases, we may feel “safe” to make payments with a credit card (which is based on the “pay later” formula) because we are used to evaluating spending more prudently.

If we know that we are less careful and therefore more spenders, the debit card (which is based on the “pay now” formula) allows us to Know exactly how much we have materially in the account The moment we check. This allows us, therefore, to keep track of every expense at all times, so that we can more carefullyconsider what purchases to make. Accordingly, at the end of the month, in short, we won’t have any nasty surprises.

We therefore advise you to analyze your economic situation and make a good assessment of whether or not it is “convenient” to make payments and purchases with a credit card.

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