Advantages and disadvantages of credit cards

Good evening !
I’m Midnight HELLO.


To us in the past
Credit card depends on how you use it

Do you use a credit card?
In Japan, the age at which credit cards can be made is generally 18 years or older, excluding high school students.
If you are under the age of 20, you will need parental consent.

Today, I would like to tell you about the advantages and disadvantages of credit cards that I think of.

First is the advantage.

  • Cashless
  • When you don’t have the money on hand
  • To get points

I will talk about what it means one by one.


Cashless generally means paying without using cash.
The reason is that you don’t have to pay in cash.
Strictly speaking, it is a deferred payment, but there is no direct cash delivery.
So you don’t have to carry cash with you, just a credit card.

But there are surprisingly some stores that only accept cash.
This is because credit cards are a system in which the store pays a fee.
In other words, there is a disadvantage on the store side that the amount of money received is reduced by the commission compared to being paid in cash.

The fee is only for the store side, and the user side usually does not incur extra money as long as it is paid in a lump sum.
However, if you choose a credit card for payment at a store that offers alcohol, you may be charged an additional service fee.

Another advantage of cashless payments is that they are hygienic because there is no direct delivery of money.
It is said that cashless society is progressing due to the recent corona sickness, but I have never heard of the infection caused by the delivery of money.

  When you don’t have the money on hand

This also leads to cashless payments, but the benefit of using a credit card for sudden spending when you don’t have a lot of money in your wallet.
However, since it is a deferred payment, I will mention it later, but you need to be careful not to overuse it.
In addition, although interest rates may be attached, it may be an advantage that you can choose installment payment with a credit card and buy things that you can not buy in bulk.

  To get points

A point system introduced by many credit cards.
Many people will use a credit card because they will get points.
Some credit cards have campaigns that make it easier for you to earn points as you use them more often.
Personally, I recommend using a credit card that gives you points that can be used at many stores.

Next is the disadvantage.

  • Spending too much money
  • When dropped
  • Potential abuse

I will talk about the disadvantages one by one.

  Spending too much money

Every time you use cash, it will be deducted from your wallet, so you will feel that you have used it.
Therefore, the consciousness that “I can’t use it anymore this month” is born, and I can prevent wasting money.
However, even if you pay with a credit card, the amount of cash you have will not decrease, and you may not feel that you have paid the money, so there is a disadvantage that you will overuse it.

And the most important thing to note is that by making credit card payments in installments or revolving payments, you will get a positive interest rate on the money you spend on shopping.
After all, the extra interest rate benefits the credit card company.
As a result of repeated installment payments and revolving payments, there is a possibility of falling into multiple debts.

With recent credit cards, there is also a service where you will be notified by email every time you use your credit card.
I would like to prevent overuse by using such services and grasping the monthly payment amount.

  When dropped

In this blog, I wrote about losing my wallet in a past post, but at that time I lost my credit card along with my wallet.
And there were times when the lost credit card was used on the day it was lost.
In other words, credit cards have the disadvantage that they can be used immediately when they are lost, just like cash.

Of course, many stores require a PIN when using a credit card.
However, if your credit card falls into the hands of a criminal, you should be aware that your PIN may also be decrypted.

As I wrote in a previous post, credit card fraud can be fully compensated in some cases, but I think it’s on a case-by-case basis, so you need to manage it thoroughly.

Apart from when you drop your credit card, you may also suffer damage such as internet phishing.
It is a form of being guided to a so-called phishing site and suffering damage by accidentally entering credit card information.
In addition to phishing, the leakage of credit card information may lead to fraudulent credit card payments.

In any case, by always checking your credit card usage history, you can minimize the damage caused by fraudulent use, not just waste.

So far, I have introduced the advantages and disadvantages of credit cards that I think of.

Some people, even working adults, do not have a credit card.
However, as I mentioned, there are advantages, so if you think that you can cover the disadvantages, you may get a credit card.

Please be careful as it is your own responsibility!

Thank you !
Nice midnight !