What is an disadvantage of a credit card?
Sarah Martinez
Updated on February 07, 2026
Perhaps the most obvious drawback of using a credit card is paying interest. Credit cards tend to charge high interest rates, which can drag you deeper and deeper in debt if you’re not careful. The good news: Interest isn’t inevitable. If you pay your balance in full every month, you won’t pay interest at all.
What are two advantages and two disadvantages to using a credit card?
Top 5 Pros and Cons of Credit Cards
| Pros of Credit Cards | Description | Cons of Credit Cards |
|---|---|---|
| Convenience | You don’t have to worry about carrying cash. | High Interest Rates |
| Rewards | Other payment methods just can’t compare rewards-wise. | Fees |
| Pay Over Time | You’re able to buy necessities without saving all the cash first. | Fine Print |
What is the amount of money you still owe to their credit card company called?
The amount of money you still owe to the credit company is called the credit card balance.
What are the downsides of having a credit card?
The downsides of spending with a credit card include: Interest rates. If you carry a balance from month-to-month, you’ll pay interest charges.
What are the advantages of using a credit card?
Balance transfer credit cards allow you to move existing high-interest debts to a new account with a low or 0% promotional interest rate. This can save you money on interest charges and help you pay down debt faster. Credit cards offer flexibility. Credit cards allow the customer to avoid having to carry large amounts of cash around.
What happens if a credit card is mismanaged?
This date may not reflect recent changes in individual terms. Credit cards offer benefits such as cash back rewards and fraud protection. But if mismanaged, credit cards can lead to debt, interest charges and damage to your credit.
What happens if you carry a balance on a credit card?
If you carry a balance from month-to-month, then depending on the card you’ll be charged interest.
