We are dedicated to giving you the information you need to understand how to use your credit card to buy things on credit
The pros of buying on a credit card
When using a credit cardto buy there are some plus points. However, you should watch out for high APR rates if you're using your credit card to make large purchases. You should not make a purchase using a credit card that you don't think you'll be able to pay back.
Pro: you can buy something and pay it off in instalments You can buy what it is you have your eye on! More than that, you can spread the cost of the purchase so you don't have to pay for it all in one go.
Pro: you may earn points or rewards for using your card Many credit cards come with rewards or points systems for when you spend on your card. The credit cards with the best rewards schemes usually go to those with the highest credit scores. Learn more here.
Pro: you'll have purchase protection If you pay for something using a credit card your purchase is protected. That means if the company you bought from goes bust, your credit card issuer will likely refund you.
Now we know why using a credit card can be a good thing - let's look at some of the drawbacks to buying on credit.
Con: buying on credit can cause you to spend more than you can repay. Buying on credit is easy - which can lead some people into a debt trap when they start using credit cards. If you're currently struggling with debt look at our blog on debt repayment options.
Con: buying on credit too much will impact your credit score Using too much of your available credit limit or applying for credit multiple times can impact your credit score negatively. For more information see our guide to building credit.