Credit cards too many are considered automated cash card when they use it they are able to get the items that they may need or want for it and pay for them later. They are widely used for a variety of different reasons including hotels, restaurants, online shopping, gas stations and retail outlets; among others. With these credit cards come several advantages and disadvantages, but the overall consequence of overuse can have some drastic and most often effects. 

Advantages:

There are many different advantages to using credit cards with the main one being that you will not have to carry huge amounts of cash around in your pocket. If you happen to be away from home and either run out of cash or accidently left your cash at home, you have the ability to go to an ATM and obtain a cash advance or you can pay for your items with your credit card. 

A lot of business places in today’s world no longer accept paper checks; as a form of payment. However, they will accept many different kinds of credit cards for payment. This is a great advantage for you, as with the exception of a few select countries, no matter what country you're in you will be able to take care of your expenses or receive cash advances in the local currency. 

Credit cards basically act like a loan if you find an item you really need or have really been wanting and you don't have the cash in your checking account to cover the cost. This enables you to make the purchase, right at the time you need to do so. Another great advantage would be if you moved to a new town, credit cards will allow you to purchase items without having to use a check until you can open an account with the local bank. 

For the more business orientated person, credit cards are a great way for them to organize their receipts for tax purposes and deductions for work related expenses. A final great advantage for using a credit card is the bookkeeping that which is provided for you. Unlike your checking account, where you have to balance it after every transaction, your balance is all laid out for you in one monthly statement.

Disadvantages:

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A lot of people, especially in today’s economy, have been scammed by giving their credit card number over the phone or internet. When the bill comes in you either just don't pay for it or you don't have the money to pay for it. Then the balance owed becomes a loan that you must pay back plus a high interest rate. However, in some cases you will be able to make a charge back on the item you believe was made illegally. But there is always the chance the credit card company will rule against you and you are stuck repaying the money any way.

Another disadvantage is if you don't pay off the balance owed on the credit card, each and every month, you may well find yourself paying back way more money than the cost of the actual item your purchased. This can happen very easily when you are only making the minimum payment. Even if you don't put any new charge on the card, the new monthly interest rate will be charged on the original purchase and the previous months interest that was previously levied.

The average credit card consumer generally has 4 or more credit cards. Each one of the cards has it's own varying interest rate and fees, as well as credit limits. When you add up the balance you owe on each of these credit cards, you may will find yourself literally thousands of dollars in debt. Finally another disadvantage of credit cards, again especially in today’s economy is that too many people are using them as a way of increasing their income.

So as you can see there are many great advantages of using credit cards but you must be aware of the disadvantages as well.

Keywords: Credit Cards, Cash Advances, Interest Rates, Purchases, Debt, Fraud, Payment, Economy, Minimum Payment, Scammed

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