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Credit card is an automatic advanced card, when you use it, you can get the goods you bought without paying yet. Credit cards Widely used source of convenient credit at restaurants, hotels, mail order, on-line shopping, gasoline stations, grocery stores, dental and medical care, church markets as well as for telephone and television advertised products Is. There are many advantages and disadvantages to using a credit card, but the consequences of misusing it can be severe and painful.
Benefit
Credit cards eliminate the need to carry large amounts of cash
If you’re away from home without cash, you can often get a cash advance or you have the option of buying traveler’s checks with a credit card.
Places that are suspicious of personal checks will often take credit cards.
Credit cards act as a short-term loan if you get something that’s a bargain and don’t have the cash or balance in your checking account to pay for it.
If you move to a new location, credit cards give you purchasing power until you’ve established yourself as a good fit in the new community.
If you are charged for an item or service that costs $50 or more in Colorado (or within 100 miles of your home) and later discover it doesn’t work or has other problems, you can report it to the credit card company. Withhold payment if you’ve tried to resolve the issue with the merchant.
You often get the best exchange rates when traveling abroad if you use your credit card for purchases and your ATM card to get cash. Check with your card issuer about surcharges before you leave for your trip. A two to three per cent surcharge can nullify this advantage.
Credit cards can help reconcile receipts for tax purposes.
Bookkeeping has been reduced to a monthly bill as opposed to a cheque.
Harm
Some people have been duped by giving their credit card numbers to unscrupulous salespeople over the phone.
When a credit becomes due and you don’t pay for it, it becomes a debt.
Adding a monthly interest charge means you pay more for goods and services.
Consumers often have more than one credit card and each has a credit limit. When the credit limits for all the cards are added up, the total can be in the thousands of dollars. Consumers can get into the habit of using credit cards to increase their income.
A loan from a credit union, bank or other financial institution may provide money at a lower interest rate, yet it is easier to use a credit card than to apply for a loan.
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