Advantages/Disadvantages

Advantages

• Instant Purchasing Power – Credit can help with unexpected emergency expenses and give you the flexibility to pay them over time.
• Security – Lose cash, and it's gone. Lose a credit card, and it can be canceled with no harm done in most circumstances. Also, you need to be prompt about reporting a lost or stolen card to be protected against its unauthorized use.
• Record Keeping – Your credit card statement is an itemized list of your monthly expenditures, which can be helpful when it comes to budgeting.
• Convenience – Credit cards are more widely accepted as a form of payment than checks, and they're generally faster to use.
• Bill Consolidation – Bills can be paid automatically via credit card, consolidating several payments into a single sum.
• Rewards – Using a credit card with a rewards program may earn you benefits like free travel.

Disadvantages

The main disadvantage to credit card usage is the potential cost in interest and fees. Wise use of credit means understanding those costs and acting accordingly. Keep track of your spending to ensure that you can repay your credit card bill in full when it is due each month.