The Pros and Cons of Using a Credit Card

CFNA is the code name used by the major credit reporting agencies. It refers to Credit First National Association, which now issues around 40 credit c

CFNA is the code name used by the major credit reporting agencies. It refers to Credit First National Association, which now issues around 40 credit cards in affiliation with the various retailers in the auto industry. The major brands issuing credit cards in association with CFNA are Bridgestone, Firestone, and Tires Plus, etc.

If you are using any of these cards for two years, this would explain why CFNA is mentioned in your credit report. Proper use of CFNA cars will help maintain a good credit rating and also help to reverse bad credits over time. Any of such credit accounts in your name will get listed on all three major credit reports, and the acronyms are often used for the data-reporting processes too.

However, if you find the same notation if there is no such a credit card being used by you, then the mention of Credit First National Association may be a mistake or sing of some fraudulence, which you need to investigate further. You can also read the other articles in this series discussing the ways to handle unknown inquiry or unrecognized account in your credit report. You also have to contact CFNA and put a freeze on your credit report until the issue gets resolved.

Fraudulence is a rare case, but in many cases, the mention of CFNA is based on your usage of one of the above retailer-specific CFNA credit cards. At the first point, you need to use the credit card intelligently in order to avoid such a situation where it may adversely affect your credit score. Further, in this article, we will discuss the pros and cons of credit card usage, which will help you to be more insightful about it.

Understanding credit card specifications

While people sign up for availing credit cards, many may not read the terms and conditions associated with it fully. All the US credit card providers are legally obliged to explain all the key features, risks, and terms and conditions to the applicants and also specify the APR for the user consideration.

In fact, in real-time, one may see hundreds of such conditions associated with each card. Say, for example, the card provider may be holding you responsible even when your card is fraudulently used to do some illegal financial deals. This has to be clearly mentioned in the terms and conditions so that the users know it at the first point and take necessary measures to prevent it.

It is also up to the users to prove that the credit card PIN is not fall into the hands of any criminals. It is very difficult to prove in case of any lawsuit related to it. The users must be aware of all the procedures they have to follow in terms of the credit card being stolen or lost. Failure to stick to the proceedings will put the credit card owner to pay for the transactions done using a stolen credit card.

This may be more complicated in cases like the credit card is lost while broad. Many people tend to don’t take the contact details or hotline number of the credit card providers and during emergencies; they find it impossible to cancel the card.

As the usage of credit card can be complicated at times, the cardholders need to be self-disciplined and intelligent in terms of the proper usage and maintenance of the credit cards they own. In order to avoid any such nasty surprises with the misuse of credit card, it is worth to know the important phone numbers of the issuers and also all the terms and conditions associated with card issuers.

In fact, the firestone credit card lacks benefits may often be pursued having a very bad reputation, but the fact is that it could be a reliable financial tool while used responsibly. Proper usage of credit card will not only help to stay safe financially but also will help to have a better grip on the monthly budget. Let’s explore some pros and cons of credit card usage.

Pros of Credit cards usage

  1. Convenience

There is no need to bother how much cash you have in hand. You may also use a debit card for the same purpose. Credit card will help you purchase goods with an agreement to make the payment later or in monthly installments. This is much convenient for not only for business persons, but also the working professionals. You have to keep track of spending and account balance in order to manage a credit card usage properly.

  1. Financial recordkeeping

Credit card offers a handy record of all your spending and the monthly statement of your account, which can give you a fair understanding of your spending. Some of the providers also will send you monthly reports and year-end summaries, which can be a great resource for your tax planning and budgeting.

  1. Build credit history

Using a proper line of credit to make purchases and repaying those properly will help individuals to get a good credit rating. Even with bad credits can also reverse their ratings with proper use of credit cards and other lines of credit.

Cons of credit card usage

  1. Temptation to overspend

As it is so easy to use a credit card for purchases, those who are not financially disciplined tend to overspend on it. If you buy something and then fail to pay it off right away, they are not only paying for the item price but also the interest on the amount.

  1. Higher fees

All credit cards have annual feeds. There could also be an additional fee charged for cash advances and all these comeovers and above the interest charged. In addition, you ultimately spend more on the fees and interest than you earn from the discount or cash back these providers offer. So, always ensure that your benefits of using a credit card outweigh the incurred costs.

  1. Short-term teaser interest rates

It may seem to be a good deal when you see the low-interest rates offered by a credit card, but the fact is that these rates may only be for a very short period and if you don’t read the fine prints carefully, you may ultimately ending up with higher interest than you actually calculated.

So, one needs to have a very careful consideration while planning to avail a credit card. There is no doubt that credit card can be a boon in need, but it can also be a bane if you are not diligent in its use.

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