Nowadays anyone with a decent credit score can get a credit card. Credit cards increase the purchasing power of people and improve their living standards. Unfortunately, if the cards are not used with care, they will land the holder in serious debts. In my opinion, credit cards have both advantages and disadvantages.
To begin with, People can benefit from their credit card in several ways. It gives them immediate access to credit. It helps in emergency situations or when they want to buy something expensive. Some credit card companies also offer zero percent interest rates on home appliances. For instance, Using this option middle and lower income families can buy washing machines or refrigerators on easy monthly installments. Thus, credit cards improve their lifestyle. Moreover, Credit cards also eliminate the need to carry cash in one’s wallet.
On the flip side, credit cards can push people into serious debts traps. They have destroyed many lives and careers. These Cards make people compulsive shoppers. They encourage people to buy all the products in the market even though they do not need them. This temptation to overspend has disastrous consequences. Credit cards are good if you can pay off the entire balance when it is due. Credit card loans have much higher interest rates than other loans. If you pay the minimum balance you will end up paying a lot of interest. Furthermore, credit card transactions also carry increased risk of fraud. Someone who knows your card number and other credentials can easily buy stuff using your card without your knowledge or permission.
To conclude, although credit cards are definitely a beneficial invention which makes the life easier for people but we need to use them wisely to get their benefits.
Nowadays anyone with a decent
credit
score can
get
a
credit
card
.
Credit
cards
increase the purchasing power of
people
and
improve
their living standards. Unfortunately, if the
cards
are not
used
with care, they will land the holder in serious debts. In my opinion,
credit
cards
have both advantages and disadvantages.
To
begin
with,
People
can benefit from their
credit
card
in several ways. It gives them immediate access to
credit
. It
helps
in emergency situations or when they want to
buy
something expensive.
Some
credit
card
companies
also
offer zero percent interest rates on home appliances.
For instance
, Using this option middle and lower income families can
buy
washing machines or refrigerators on easy monthly installments.
Thus
,
credit
cards
improve
their lifestyle.
Moreover
,
Credit
cards
also
eliminate the need to carry cash in one’s wallet.
On the flip side,
credit
cards
can push
people
into serious debts traps. They have
destroyed
many
lives
and careers. These
Cards
make
people
compulsive shoppers. They encourage
people
to
buy
all the products in the market
even though
they do not need them. This temptation to overspend has disastrous consequences.
Credit
cards
are
good
if you can pay off the entire balance when it is due.
Credit
card
loans have much higher interest rates than other loans.
If
you pay the minimum balance you will
end
up paying
a lot of
interest.
Furthermore
,
credit
card
transactions
also
carry increased
risk
of fraud. Someone who knows your
card
number and other credentials can
easily
buy
stuff using your
card
without your knowledge or permission.
To conclude
, although
credit
cards
are definitely a beneficial invention which
makes
the life easier for
people
but
we need to
use
them
wisely
to
get
their benefits.