Credit Cards: The Pros and Cons

By  //  November 26, 2020

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Is it ok to use credit cards? Is it really worth it? Maybe it’s better to avoid them? In this article, we’ll discuss the major pros and cons of credit cards. So, you can stop guessing and decide on your own what fits you best.


What is the benefit of having a credit card? It’s easy to access a short-term loan. This is its primary focus and purpose. Need help with loans? Check Payday Depot.

First of all, let’s go over the basic rewards. The reward card is the most marketed product and usually gives you rewards between 1 and 5 percent, depending on how the card is set up. Amazon gives you 5% back for everything inside their store purchases.

It gives you 1% for everything else. Other cards give you 3% back for gas and 1% for groceries.It really depends on the exact card. Other bonuses and perks can include regular points for random prizes or frequent flyer miles.

And then there are secured credit cards. These are pretty much the training wheels of credit cards. They allow you to help increase your credit score until you can get a full-grown credit card.


The drawback to these cards is that you have to give them capital. Usually, you need to give $300 to $500 before they actually allow you to open up the card.

Many people will not be able to refrain from using credit cards. About 39% of the US population carries a negative balance.

And then there are cards out there that are designed to actually consolidate debt. The drawback is they will charge you high fees if you miss a payment. This helps people that have spiraled out of control and would like to get a handle on their credit card debt.

There are also cards like American Express Platinum Card. It has a $500 annual fee. It doesn’t exactly work like your regular credit card. With no APR just a heavy fine if you do not pay off the entire balance by the end of the month. Perks are flyer bonuses and the ability to enter most airport first-class lounges in the world.

There are a lot of other bonuses that come with this card, and you can check out their site. This is another option for those that are willing to pay the 500 annual fees to get a few extra perks. And a fun fact about this card if you are a service member of any sort you can get this fee waived every single year.

Let’s talk about exactly how much you can expect back from these reward points. Remember the 1 to 5% that you get back for purchases. You can usually expect through average spending on a card between 70 and 200 dollars depending on exactly how your card works and your spending habits.

And here lies the HOOK. Companies are incredibly good at running numbers, and they know that they are able to lure more customers by giving them these perks and rewards.


Credit cards are very tricky. Don’t be hooked by the perks they offer. Think twice before you jump into using them.