How much do you know about your credit cards? Being a cardholder, there’s way more benefits once you acquired the competence of performing credit control at your end, considering the fact of management of unused credits. Understanding the pros and cons of a credit card, you’ll have an idea on various ways of handling the card to your utmost advantage. The best choice of consumer credit cards in 2018 can be found here. Learn about the pros & cons of your credit cards.


Pros of doing a credit card

Most consumers are aware of the benefits gained from the cards. Not many, however, knew the right way to fully optimize their advantages in being a high-quality cardholder. Take this opportunity of learning the advantages of credit cards:


1. Wide range of credit card benefits in shopping malls or store outlets.

People often misunderstood that your store credit card, a new credit card, a line of credit, or any other cards, cannot be crossed over to another shopping district. Wrong! The matter of fact is that such cards are available across malls & even over the borders of United States, United Kingdom and till ends of Asia pacific regions.


Below is some feedback of real users who successfully consumed using their credit cards:

  1. Visa card or mastercard: Most banks do a tied-up with local & foreign shopping malls, accepting the following brands for merchant processing: VISA & Master. The code is fully encrypted for consumers to indulge safely and not needing to worry about a potential credit card fraud.
  2. Shopping malls welcomed you: A visitor from either locally or abroad is often welcomed by domestic shopping outlets, be it a hsbc credit card, american express, a black card, a gold card, or any other platinum card services.
  3. Merchant card processing invention: Today, online credit card issuers like Paypal, Amazon, eBay, C.J., or merchant departmental store credit card, are widely available locally. Feel free to swipe over-the-counters at any transacting point.

A quick way to learn about proper usage of your cards, it’s possible to consult any retail store assistant in finding out the right credit cards to use, providing you with the best reward points as well as getting a huge discount on certain costly goods. The benefits could be priceless & incentivized you to remain loyal to either a brand or merchandize inventory.


Also, when in doubt, do not be afraid to contact your credit card agent for financial assistance. An officer shall review your credit limits and make a decision in letting you go beyond the coverage limits while informing you on the increase in credit score. Some people tend to benefit more from boosting their individual consumption in the long run.


2. Apply online for a credit card.

If you’re searching high and low for an ideal credit card in 2018, it’s time to leverage on the Internet for some suggestions. Most consumers have a certain form of understanding in the types of credit spending but unsure of the choices of credit cards bank do offer to them. True! You tend to go online and do some research on various options in getting the best deals in town.


Below are some benefits being targeted for online credit card applications:

  1. Cash back vouchers being distributed: One common way credit card companies attracted users to apply online is cash back. A successful applicant will receive an incentive of approximately $20.00 to $80.00 cash rebate. Some applicants do get a total of $120.00 bill offset in credit, however.
  2. Annual waiver for a credit card: A major concern for card users to apply for multiple cards is due to the annual fee that banks or credit card agencies charged. As a result, a bank’s marketing campaign may include one-year free annual waiver or sometimes up to 2-year worth of credit card waiver.
  3. Credit card dispute or fraud case: Another problem many card companies faced is on personal identity theft frauds. The bank often liaised with a credit bureau, a local government, or the police to prevent identities theft.

Additionally, most credit card firms invested heavily in cyber digital security technology to guard against loss of personal information, identity theft, credit card info leakage, or other probable criminal offenses. The firms too banked on premium card insurance, costly credit protection, and defensive mechanisms, to control frauds in a credit card.


Upon applying for a new credit card, being a master to your card wallet, you’ve to perform similar preventive measures in protecting your money. Borrowed money can be dangerous if anyone has access to your cash or credit card. Don’t walk-in to a shady store or purchase illegal objects for a lifetime. A credit card swipe might be forged across borders for anonymous transactions to be carried out while domiciling locally – legal repercussions might occur.


3. Compare & review websites for credit card choice.

An advantage of choosing a credit card is global informational sharing. Many consumers often surfed the net to do a detailed credit check: Online review websites or comparison portals. It does help better in educational learning as well as making informed decisions in whether to apply for a AMEX rewards card, VISA or Mastercard, merchant store card, or a balance transfer credit card.


Below are some prominent credit card comparison websites for you to decide on:

  • 1st Option – Nerd Wallet website: An extensive range of credit card choices as well as suitable ideas on the types of categories to be used. There’s no obligation to sign up for the site’s newsletter for the latest credit card promotions or personal finance too.
  • 2nd Option – Moneysense credit card portal: A prominent website demonstrating a wealth of experience in dealing with credit card agencies. The firm does offer an enormous range of credit cards in a table format, enabling ease of choice selections.
  • 3rd Option – Anything else: Some consumers like to base their preferences on the suitability of credit card online comparison websites. In doing so, they’re more comfortable revealing certain personal information such as monthly wage scheme, incentives, bonuses, or other sensitive identity.

Notably, in choosing the best credit cards, you’ve to be careful on the information being shared across the portal. Please ensure that the website is at least 128-bit encrypted and not storing any of your credit card details during the entire process. This is to protect you against unforeseen damages such as credit card theft or fraudulent attempts in securing your card details.


A compare & review credit card website is highly recommended. You’ll have the luxury to opt in for new credit card reviews while being informed on the latest promotions or hot deals that credit card companies enticed you. Just remember not to reveal all of your local information like address, billing details, or personal identity – simple things like emails for subscription is sufficient.


4. Be the choice of credit card companies.

Instead of getting frustrated on bank rejections, be the first in-line to be accepted widely by a range of card issuers. Consumers don’t have the “say” considering the fact that compliance & internal banking teams conduct KYC processes without informing customers. You may or may not obtain a bank’s or credit card company’s approval after sending in your application.


Below are some strategies to attract credit card companies to provide you with the best rates:

  1. Excellent to good credit score: A good credit score of 609 and above does entice your banking service provider. By having a high-quality credit control, you’re in the radar for credit card agents to contact you for an attractive interest rate & financing terms for installment purchases.
  2. Do a credit report cleanup: Don’t wait for your creditors to ring you up for unpaid debt obligations. This will lower your chance of a credit card approval. It’s necessary to perform credit repair by cleaning up your bad credit history.
  3. Be sure of what you want: Without a clear idea of what you wanted, 10’s or even hundreds of credit card services will not impress you. Banks or local credit card firms don’t target such consumers due to mismatch of card benefits and wrong credit utility ratio.

Therefore, it’s imperative to observe some financially renowned guidelines in getting the card service providers to entice you. An excellent credit score of 800, a thorough credit cleanup service, or the right financial decision, is the right method of attracting lenders to offer their best services for you to benefit the most.


Be the choice of lender’s credit card selection today! Forget about the idea of attracting them to choose you but adopt the methodology of getting accepted into the list of dean records. A credit card company will not attempt to offer if there’s a mismatch in campaign selection or even a bad credit score report.


5. Ample time in having a credible payment history.

Assuming you’re applying for a business credit card, a platinum visa card, or a company credit card, chances of you requiring to prove your credit history is high. It’s important to list out your past current accounts and revealing your payment history, demonstrating strong debt repayments to your lenders.


Below are some evidences as proof of payment history for you to show any financial institution:

  1. Previous personal consumption in credit cards: Looking for a debit or credit card application, the first thing your lender looks out for is your past borrowing records as empirical evidence. Your track records are critical for them to make a financial decision in whether to loan out or not.
  2. Missed payments or late repayments: Another factor credit card company looked out for is on debtor’s responses. If you’ve a long-term timely repayment progress, credit card firms will offer you quality interests at lower rates as opposed to someone who frequent late payments.
  3. A good credit score in a personal credit report: When a credit check is conducted, likely an inquiry from a creditor, you’ve to prove your excellent credit score via your credit report – increasing rate of approval & lowering the rate of interest too.

Don’t let a bad credit report affect your financial health. It’s usually the (root) cause of every borrower not being able to get a smooth transition in a personal loan, a mortgage to buy a house, a loan to buy a car, or payday loan to tide through sudden medical fees. Emergency funds are too part of this entire financial planning conceptualization.


A good & long payment history, low outstanding amount and early prepayment, is what your lenders are looking out for. This provides a clear indication that their invested funds are issued out in a credible way considering the risk of delinquency. Regardless, you’re held responsible for any source of funds borrowed from a financial institution – banks or credit firms.


Good to know about pros of a credit cards in year 2018

Generally, you’re empowered to utilize your approved credit cards. Do not indulge in pricey objects that may lead to:

  • Loss of trust among creditors – payday loans, local banks, funds houses, credit card companies, or any lenders.
  • Breach of contract & termination of services – unpaid debts & liabilities.
  • Inability to repay loans – compensating with penalties & fines.
  • Credit card interests – generating a rate of interest higher than principle debt repayments.
  • Bad information reported – credit card agencies reported your bad debts & objects.
  • Rightful claim of assets – debt collectors coming to claim on your personal assets.

As you can see, these scenarios are not just for show but to prove that such cases of rightful claims and listed bad information in credit report cannot be deleted by payment or easily reversed. You’ve to protect against potential identity thefts as well as any unfortunate financial disasters.


Cons of credit cards

Many consumers only looked at the benefits & advantages of using a credit card, not many wanted to understand the implications of misusing or wrongly utilizing as cardholders. On the façade, it might look simple by just swiping slosh credit available. Do you think it is that easy behind-the-scenes? Financial institutions had invested heavily on marketing & data analytics companies so as to bolster economic spending at the sacrifice of local and foreign debtors.


1. Risk of delinquency & getting into financial implications

Recently, credit bureaus reported a long list of outstanding debtors who failed to repay their loans completely or even defaulted. The banks and credit card companies don’t exercise mercy on those who missed payments, late payments, failed to make payments, or don’t intend to issue payments – statistics reported that up to 60% of American consumers often faced difficulties in debt repayments.


Let’s take a look at what exactly you’ll be involved during a credit card dispute:

  1. Getting sued by local banks & creditors: A sure way of sending lawyer letters to your mailing address demanding for immediate payments else subjected to penalties of law.
  2. Sending debt collection agencies over: Another unscrupulous attempt of trying to retrieve bad debts or unpaid liabilities.
  3. Mortgage foreclosure on your home: Loss of roof for you and family members.
  4. Repossession of cars or autos: Driving to your home to seize control of your vehicles.
  5. Rightful claims on personal assets: Upfront pasting “sticker” tabs on your individual assets which will be collected upon judgement.
  6. Facing a jail term: One proven method in instilling fear to debtors.
  7. Filing bankruptcy charges: Credit card companies often filed bankruptcies to credit bureaus and local governments.
  8. Forced you to sign agreement with bad debt companies: Debt consolidation agencies & bad debt companies find this lucrative business by generating a profit margin.
  9. Lowering your credit score: Creditors reported bad information and listed all negative objects (sometimes overdoing on unpaid claims).
  10. Extend your bad debts to increase interests – You’ll be forced to sign an agreement on bad debts to repay for a longer term and at higher financing costs.

Evidently, you’ll not be able to pay reparations and complete full debt repayments. The motive is relatively clear on generating a profit out of your bad debt situations when they’ve the onus in their favor. Local bad debt collection companies do profit from such businesses as banks, financial institutions, credit card firms, law agencies, or other lenders introduce new debtors to them – a double win orientation for both parties.


A risk of delinquency is not a joke. Financial repercussions such as the above mentioned 10 reasons of not choosing credit cards cannot be undermined. It’s your responsibility to adopt prudent financial practices as well as choosing the best credit cards. Don’t let the credit card agencies earned higher rate of interests in exchange for petty benefits, it should be the other way around as they’re operating a business for you.


2. Credit card info being publicly exposed.

Another peril most consumers are fearful of is the alarming growth of loss of personal identities. Local media agencies had been constantly reporting the rate of public & private individuals losing their businesses and reputations after their identities had been revealed, not to mention smaller cases of credit card frauds.


Since each of you had been victimized by identity theft, observe the following guidelines:

  1. Never sell your credit card info online: Many consumers get legally involved after selling their credit card details for a lucrative sum. It’s not simple as sale of personal information but the matter of fact being a criminal offense.
  2. Never divulge your personal credit card info: Inversely, most people got attracted to reduced financing interests on mortgage loans & free credit card annual fees for life – these are not going to happen unless you possessed an excellent credit score report.
  3. Freedom of speech: Do not believe anyone who say in the internet. It’s obvious that social medias are blatantly looking for debtors to squeeze a profit!
  4. Challenge logical assumptions: It’s imperative to do an intensive credit card review via review portals or comparison websites for credit cards.
  5. Victim of identity theft: Never fall for debt trap when anyone (including credit card officers or local credit bureau officers) who tried calling you to fish for info.

Loss of personal identities and stolen identities are major hazards, detrimental to your financial health. If you’re serious in repairing bad credit, to obtain the benefits of using a good credit card, ensure that your particulars are securely guarded. Install a firewall on your computer, invest in a good bug protection system, or buy an insurance to cover the pitfalls.


3. Empty promises of using a credit card.

There are many ways a credit card company, a bank, a financial institution, or any lenders, can promise you the benefits of using a new credit card. It’s not (really) true to say that all promises could be fulfilled to your expectations, let alone using every benefit to your advantage. Many card companies abuse this privilege for promotional purposes but under deliver their promises – bringing dissatisfaction to eager consumers.


Let’s take a look at some of the “best” guarantees in using a credit card but failed to materialize:

  1. Cash back credit cards: One empty promise from credit card companies is guaranteed cash back. More often than not, the departmental stores rejected such cash back credit cards and mentioned only to use in-house store credit cards.
  2. Offset grocery bill payments: Another common dispute charge raised is on grocery shopping. Bills cannot be offset at times due to certain restrictions among giant retailers – you might get frustrated over expired promotions or new offers that an aged credit card cannot function!
  3. Smaller retail outlets: Some apparel outlets are homegrown and do not accept major credit cards as form of rewards points. You may like a dress or a suit but the lack of incentives strongly discouraged you from purchasing the items.
  4. Wrong credit card signup application: A few newly joined credit card officers don’t know the financial system well enough to promote the right offers to you. Ended up, you might be furnished with a massive 20-30 credit cards in your wallet!
  5. Overapplying for many credit cards: If you’re looking for various rewards, loyalty points, and cash back rebates, chances are there’s an integrated credit card waiting for you. But, you might not find an ideal card as the clauses are in a mess for a guaranteed credit card.

Over a period, you tend to understand that a bank’s credit card may not satisfied you requirements. It’s not exactly a disincentive but definitely a turnoff factor for those who wanted to leverage on the bank’s connections & partnerships in attempt to build a good credit history. The benefits of credit cards might not outweigh the cons of using a credit card hence getting you to re-think again in applying for multiple cards.


Once a word has been marketed out, it’s difficult to retract back the marketed ideas to consumers in new credit card branding as well as paying for damages done. You may have a bad impression on the major credit card companies while not intending to sign up for new credit card offers. Do not be disheartened and try to find via comparison portals for quality deals.


4. Lack of credit limits to be used.

Sometimes, you’re trying to apply for an installment plan for a furniture, a new auto, a renovation loan, or other insurance plan. It’s frustrating for you to swipe your credit card a few times but to no avail. This is because the daily or monthly credit limits had been blown up long ago. You’ll be anxious to see that the object you settled for might not come into reality.


Let’s take a good look at some of the plausible reasons why you short of credit limits:

  1. Overspent on luxury goods: One problem many customers faced is on an extravagance lifestyle. Luxury goods often costed your individual credit card consumption to implode, thereby leading to insufficient credit card limits.
  2. Too many installment plans: Another common issue is that you’ve a wealth of installment plans behind, pegged to your local credit card issuer. Now, you’re stuck with those plans and have to seek new financing lines.
  3. Incorrect line of credit used: The problem is that consumers don’t exactly know which credit cards to be pegged and which are purely for consumption purposes – getting the wrong credit cards billed and finally being rejected for invalid billings.
  4. Low or bad credit score: When a credit rating agency downgrades your credit report, it’s time for a change in credit score. This is when you credit score drops that banks & credit card companies run for cover.
  5. Loss of employment or income: Similar to a bad credit score, a loss of income earning capability does affect your credit card limits. An annual credit card review or check is performed to ensure that clients do have sufficient capital or income earned to continue enjoy such facilities.

The ultimate aim for a credit card agency is to generate revenue while you’re enjoying the benefits. Hence, for a legal card issuer, financial regulations and compliance had to be observed closely. A company will not hesitate to terminate or downgrade your credit card limits if there’s any drastic changes made to impact your overall fico score.


Worried about a local credit check, it’s prudent to practice checking your financial status, credit rating, credit score, credit report, and engaging a credit repair company. The lack of coverage limits might get you stuck with an unpaid object or even sued by the company selling you the products and services. Do not get ensnared into such a trap!


5. A guaranteed credit card does not work.

For a reputable credit card company to verify your details, it does not mean that you are going to get a guaranteed credit card. Moreover, local banks do not provide bankruptcy credit cards if you did not meet the requirements. It’s imperative to remain calm considering that you do not fall under the almost “blacklist” record.


Let’s take a look on various ways to avoid falling into a debt trap:

  1. Guaranteed credit card approval: Do not agree to anyone who promises you a 100% approval rate. This is impossible as the banking compliance team has to assess your local credit score records before doing the needful.
  2. Bankruptcy credit card approval: If you’re an ex bankrupt, chances are this card might tempt you to apply. Go for it if you really have the spending power.
  3. Credit card without annual fee: A good option for people who don’t like an annual fee waiver request but it’s not 100% guaranteed waiver, be mindful.
  4. Credit repair cards: There’s no such thing as a credit repair company offering cards or any sort of financial products. It’s against the law!
  5. Guaranteed cash advance line: Avoid jumping the queue and apply online using your credit cards. The cash advances or bank overdrafts don’t work out this way!

If you’re seeing these lucrative financing options available, likely it’s the causes of personal identities being stolen. Avoidance of risk is advocated as one wrong move might get you into legal problems while receiving false advices from the corresponding fake credit card issuers.


Don’t be afraid to report any guaranteed credit card agencies to local credit bureaus. In the case of a verified company, the issue will be resolved but not for those who were operating illegally. You’re the main target of identity thefts or credit card frauds.


Good to know about cons of credit cards in year 2018

Before ending your endeavor in searching for the best credit cards, do observe the following pro tips in ensuring your safety:

  • Verify your source of credit cards – do not be a slave to debt repayments
  • Never signup online with another credit card – a new card application should not require additional cards to supplement info.
  • Check with credit bureaus – avoid unnecessary risks by calling up a credit bureau.
  • Forgo too-good-to-be-true deals – never attempt to handle a fraudulent case alone.
  • Invest some time in credit card comparisons – there’re tons of credit card reviews websites & credit card comparisons deal, why risk for less?

The best credit card is always changing. You’re to apply for new cards inline with your expectations while keeping old credit cards for payment history proofs. A win-win orientation is the most ideal way of keeping you in good financial conditions as well as getting an excellent credit rating from any credit card reviewers!


Quote of the Day: “Credit your card today – KIG Hall [2013-2018]”


Relevant Topics

» Do’s & don’ts of credit report: List everything out at once!

» Pros & cons of credit repair: Final destination for a credit fix!

» Do’s & don’ts of credit cards: Avoid credit card debts like cash advances here!

» Do’s & don’ts of credit score: Never destroy your financial credence!

» What you need to know about credit repair: All you ever needed!


This article was originally published on February 18, 2014. It has since been updated.