Your guide to choosing the right credit card

The Benefits and Risks of Using a Credit Card

While credit cards are a necessity for most people, they do come with potential risks. You can manage these risks better if you know what they are. Here's a quick look at these benefits and risks.


  • You can shop or travel without having to carry large sums of cash. Credit cards are accepted all over the world and generally give the best currency exchange rates.
  • You have immediate use of goods and services, especially important for expensive items like appliances or furniture.
  • Credit cards can be used to deal with unexpected financial emergencies.
  • They will help you keep track of how much you are spending each month by giving you a record of purchases.
  • Credit cards offer a Theft Protection.
  • Some credit cards offer incentives, such as reward points, that you can redeem for merchandise or services
  • Some credit cards offer special services such as reserving rental cars or tickets, replacement of lost or stolen merchandise, extension of the warranty or guarantee, air travel insurance and collision damage waiver insurance for rental cars.
  • There is also consumer protection power with some credit cards. The credit card company may intercede on your behalf if you are unhappy with a purchase or if you failed to receive a purchase.
  • Credit cards can help you establish a credit history and earn a credit rating
    be more convenient to carry than cash


  • Used unwisely, credit cards can allow you to build up more debt than you can handle
  • If your payments are late, you will damage your credit rating
  • Have complicated terms and conditions
  • Can cost you much more than other forms of credit, such as a line or credit or a personal loan.








  Reward Credit Cards
Cash Back Credit Cards
Reward Credit Cards
Gas Cards
Travel Credit Cards
Everyday Credit Cards
Low Interest Credit Cards
No Annual Fee Credit Cards
Student Credit Cards
Secured Credit Cards

Other Credit Cards
Small Business Credit Cards
US Dollar Credit Cards
Store Credit Cards
Prepaid Credit Cards