Pros And Cons Of Credit Cards - 746 Words

The Pros and Cons of Credit Cards Credit can be a powerful and beneficial tool, however, there are many pros and cons that accompany credit cards use. When used correctly, credit cards are invaluable, however they can also demolish a person’s credit history, affecting them for years to come. As a society, we are becoming increasingly dependent on using credit cards and recognizing the positives and negatives is key to responsible credit card use. The advantages of credit cards have revolutionized the way society pays for bills, goods and services. Credit cards allow individuals to receive goods and services today in exchange for the â€Å"promise of future payment† (Rommann). Credit cards are extremely quick and convenient, sometimes†¦show more content†¦With all of that said, credit card use has many drawbacks. â€Å"Credit encourages some of us to overspend because it’s very easy to lose track of our spending. Credit can lead us to believe we will have money to repay debt in the future when we really don’t know that for sure. Overspending can lead to debt problems—and even bankruptcy—when payments to creditors exceed our ability to repay† (Thomas G. Carpenter). Using a credit card requires discipline and people have the tendency to overuse credit cards and spend more than they can afford or would spend when using cash. Carrying a monthly balance on a credit card racks up in terest and fees, hence, costing the consumer considerably more to purchase items. The cons of credit include, irresponsible spending, splurging, not thinking when spending and being unaware of how much you are spending. Irresponsible use of credit cards can lead to a low credit scores. Millions of people struggle paying their monthly bills which leads to a cycle of people being trapped in a hole of bad credit. Missing a monthly payment on a credit card hurts your credit and incurs expensive late fees. These lapses in payment effect peoples future credit, when wanting to buy a new car or a new house, they are unable to purchase these goods because the bank now considers them a â€Å"bad risk† and doesn’t trust that they will pay them back. The costs of bad credit may also include, â€Å"trouble getting a job or security clearance, trouble getting a cell phoneShow MoreRelatedPros And Cons Of Credit Cards2174 Words   |  9 PagesCredit Cards-- some people might think of this as a dirty word; others might think of it as their saving grace. No matter w hat your stance on credit cards may be there are many pros and cons to owning and using one. When I was 18, I got my first credit card offer in the mail. As a person who is very bad at saving money, I quickly responded YES! SIGN ME UP! and was soon sent a nice pink plastic card that, in my young eyes, was the key to open so many doors for things I never was able to affordRead MoreCash And Credit Cards : Cash Or Credit Card965 Words   |  4 PagesIn today’s economy, cash or a credit card is needed to meet the basic human needs. It is an apparent fact that we need cash or credit cards to purchase items such as food, clothing, and to buy gas. Also, when you are out shopping and discover that you have used all the cash in your possession, it is then that you realize that the advantage of having a credit card. Furthermore, with cash, you are restricted to the amount in your wallet or purse; however, a credit card allows you to pay for your purchaseRead MoreCredit Card Vs. Cr edit Cards886 Words   |  4 PagesIn today’s economy cash or a credit card is needed to meet the basic human need. It is a clear fact that we need cash or credit to purchase items such as food, clothing, to pay bills, as well as buy gas for our daily travels. However, when you are out shopping and discover that you have used all the cash in your possession, which is when we realize that the benefit of having a credit card is very beneficial. Although cash and credit cards are similar in that, they both are used to pay for goodsRead MoreWhy Are Ebates Is A Reward Program?1247 Words   |  5 Pagesin handy, and over the course of a year can add up to a hefty sum. Shopping Ebates. Ebates is a reward program that will return a percentage of your total online shopping bill to you if you enter the store s online site through an Ebates link. Pros: Ebates is a reputable company that actually sends you checks for your shopping experience. There is a plethora of stores to choose from, including almost every large chain in America including online giants like eBay and Amazon. The cash back rewardsRead MoreThe Key Facts About Raydar Electronics1343 Words   |  6 Pagesother technologies such as unique identification card and biometrics (finger prints). ïÆ'Ëœ To continue tagging using RFID technology. COA EVALUATION: ï  ¶ Making use of other technologies such as unique identification card (swipe card) and biometrics (finger prints). Pros: †¢ A very few seconds of time is required for finger print scanning system. †¢ Finger prints are very unique identifier specific to individuals. †¢ By using a unique identification card, once the customer visits the store all the customerRead MoreCase analysis for Hyundai Card1338 Words   |  6 Pagesï » ¿Executive Summary As a latecomer in Korean credit card market, Hyundai Card has gradually increased the market share since it entered the business in 1999. With its tie with Hyundai motor group, the company branded itself as Hyundai M Card. It started off by attracting buyer to consider using the card to purchase Hyundai automobile by offering discount. In later stages, the company has adopted the customer segmentation strategy to diversify its target groups of clients. With the emphasisRead MoreWhy Credit Counseling Is The Right Solution For Your Particular Needs842 Words   |  4 Pagesfor profit credit counseling service. Before determining if credit counseling is the right solution for your particular needs, it is important to understand the pros and cons as well as alternatives that might work better. Basics of Credit Counseling: Before looking into a credit counseling company, it is important to understand the basics of the service. Understanding what credit counseling does will make it easier to determine if it is the service you need. A for profit credit counselingRead MorePros And Cons939 Words   |  4 Pagesas considering which style, or styles, are perfect for every room, and which accessories to add for enhanced comfort and beauty. So, lets talk about several options you can use to pay for your new Renewal by Andersen replacement windows. The Pros Cons of Financing Modern Replacement Windows Financing a large purchase like a new house or a new car often means financing at least part of the total price. Some homeowners hesitate to add another monthly payment, but there are a few advantages, ifRead MoreThe Pros and Cons of Owning a Cell Phone790 Words   |  4 PagesThe pros and cons of owning a cell phone Broc Barchard COMM/112 April-08-2013 Kerry Moquett The pros and cons of owning a cell phone Annotated Bibliography: Are cell phones controlling us? I generally like this source because it goes into great detail about the evolution of cell phones. Starting back in 1984 the first cell phone was basically a brick, and now the cell phones used today are way smaller. Also this source talks about devices becomingRead MoreAlpen Bank1311 Words   |  6 Pagessuccessful implementation of Alpen Bank in Romania in the years 2000, Gregory Carle the country manager is wondering whether Alpen Bank should consider launching a credit card in the market. In order for the launch to be profitable several points have to be clarified such as who would the company target, what would be the positioning of this new card and how should it be marketed. Situation Analysis Context: After a period of recession, the economy in Romania is on a rising trend. The total disposable