Pros

• Versatile: goods can be purchased in person, over the phone or on-line
• Global: credit cards can be used all over the world
• Finance: credit cards can provide you with cost free short term finance - as long as you repay the money within the grace period
• Extras: some credit cards offer extras such as discount vouchers, air miles and cashback on selected purchases
• Insurance: some companies offer insurance on purchases made with their credit cards. This may include travel insurance
• Hole in the wall: credit cards may provide you with access to cash, although you usually pay a fee for this service

Cons

• Penalties: if you have trouble making payments on time, credit cards tend to be expensive and hard to control. Interest is usually high and the company may penalise you for late payments
• Expensive: other forms of borrowing, such as personal loans or mortgage extensions, may be cheaper
• Errors: mistakes may happen, for instance being charged twice for a purchase. To help prevent this you should keep receipts and cross check them with you monthly statement. Any discrepancies should be reported immediately to the company
• Oversees purchases: may not appear on your statement for a few months, making it difficult to determine whether or not they have been debited to your account