2 min read
19 December 2023

Over time, credit cards have evolved into an essential tool for most savvy spenders for a good reason. It is a far more secure way to pay and is hassle-free, as you don’t have to worry about carrying cash. As a bonus, it gives your finances a little more flexibility. However, it is important to have a clear understanding of the pros and cons of having a credit card. While these depend on how you use and manage a credit card, start by taking a closer look at the pros of a credit card.

Pros of a Credit Card

Increased spending power

Credit cards give you access to a credit limit based on your credit history and repayment capability. Generally, your credit limit is a significant amount, which results in a higher purchasing power. As your income grows, you can request your issuer to increase your credit limit, thereby unlocking a greater quantum of funds.

Efficient credit score building tool

Among all the pros of credit cards, this is the most valuable. A credit card is an exceptionally incredible tool that allows you to build and maintain your credit score. Since the amount you repay depends on your usage, you can always control expenditure through the credit card and spend only as much as you can repay. Over time, prudent usage will result in a good credit score. In the future, this will help you secure financing with ease.

Additional read: How to use a credit card wisely?

Apply with issuers that have a tie up with petrol stations

To offer fuel surcharge waivers and reward points, issuers of the best credit cards for fuel have tie-ups with various companies. So, make sure that you get a fuel card that you can use at all or almost all fuel stations. Furthermore, confirm that your credit card lets you redeem the reward points by paying for fuel.

Widely accepted and easy to use

A credit card is a widely accepted cashless payment method, both internationally and nationally. It is also easy to use as you can complete a payment in a single swipe or click by either entering your unique 4-digit PIN or an OTP. Certain service providers also cater only to credit cardholders simply because of the simplicity it offers.

Valuable perks and reward system

A feature that is exclusive to a credit card is its reward system. Through this, you earn reward points for all transactions and whenever you cross a spending milestone. You can then use these points to pay for other expenses, all while accessing money-saving offers and deals. Credit cardholders also can access perks such as complimentary valet parking at partner outlets, free airport lounge access a few times during the year and more.

However, when used recklessly, a credit card has certain cons. Take a look at what they are.


Using a credit card for purchases provides unparalleled convenience. Whether making online transactions with pre-stored information or having the physical card on hand, the ease of payment is unmatched. This convenience becomes particularly evident when funds in a checking account are low, offering a temporary solution until the next payday.

More secure than cash

Credit cards are favoured not only for their convenience but also for the added layer of security they bring. In the event of a lost card or compromised information, credit card companies can promptly place a hold on the card, preventing unauthorized transactions. Many credit card issuers actively monitor accounts for any suspicious activities, promptly notifying cardholders of potential fraudulent behaviour.

Purchase protection

Credit cards often come with the benefit of purchase protection. This feature applies to items bought with the credit card, offering a safety net in case of theft or damage within a specified period, typically ranging from 90 to 120 days. In such cases, cardholders can either receive a replacement or be reimbursed for the item's value.

Cons of a Credit Card

Easy to overspend

When you have a credit card to your name, it’s important to remember that you’re spending borrowed funds and that you’re obligated to repay this amount. Since credit card issuers sanction a significant credit limit, it is easy to overspend, which can severely hurt your financial well-being.

High fees and hefty interest penalties for defaulting

When you use and repay your credit card, the costs are minimal. You have to pay an annual maintenance fee, but often this is waived off when you spend a certain amount during the year. Alternatively, you can pick cards with minimal or zero annual fees.

That said, if you default on payments, the interest and penalties are extremely steep and have the potential to suffocate your financial growth. This is especially true if you only pay the minimum bill amount each month.

Susceptible to fraud

Credit cards are susceptible to fraudulent activities such as skimming. To avoid your credit card from becoming an impediment, it’s important to take precautionary measures. For example, only shop on secure websites, don’t use your credit card over an insecure internet network and don’t authorise anyone to take your card out of your sight.

Additional read: Tips to get the most out of your Credit Card

Additionally, make it a point to choose a credit card with in-built security features. The Bajaj Finserv RBL Bank Credit Card, for example, lets you take full control of your credit card through a smartphone application, allowing you to block the card easily and report suspicious activity. Furthermore, it also comes with a zero-liability fraud cover that protects you from any damages caused by malicious activities, provided the incident is reported on time.

Moreover, the Bajaj Finserv RBL Bank SuperCard offers a wide range of value-added credit card offers that make every transaction economical. You can enjoy incredible discounts, cashback offers and special amenities, like airport lounge access and fuel surcharge waivers. You also get up to 20,000 reward points as a welcome gift and the potential to accrue annual savings of up to Rs. 55,000. To unleash the power of the SuperCard, check your offer online and apply for today.


In summary, credit cards bring undeniable advantages in terms of convenience, security, and purchase protection. However, individuals must exercise caution to avoid falling into the pitfalls of overspending, accumulating debt, and incurring high-interest charges. Understanding the pros and cons allows users to harness the benefits of credit cards while mitigating the associated risks.

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