Credit Cards-- some people might think of this as a dirty word; others might think of it as their saving grace. No matter what 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 afford. I was soon purchasing an Mp3 player, shoes, purses, you name it, but I was soon rudely awakened by my credit card bill. The minimum payment was only $10, so I thought, my minimum wage job would be fine to cover it! In no time I had maxed out my …show more content…
Credit can also be very helpful when you need some money in case of an emergency, like having a credit card that you keep just for auto emergencies or medical expenses.This can be extremely important when your car needs a new transmission and you have already emptied your savings account trying to pay for just the labor costs alone and its not even finished. Many people also keep an emergency credit card in case they became stranded while on a trip and unable to get home on time, this will help ease the stress of paying a few extra nights for a hotel. Credit Cards can also make shopping a breeze, which is great especially if you are someone who does not have a lot of time to wait around in line at a store; and when you do have to go to the store the card is so easy to use, no more digging in your pockets for change or emptying your purse to find that extra dollar that you just know you have somewhere. Another major benefit of a credit card is security. If you lose your cash, or if it is stolen, there is no way to claim what was taken, however if you use a credit card that becomes lost or stolen, you can report it to the company that issued it and many times the company will refund the amount that the theif used and refund any fees incurred by the theft. Overall Credit does not have to be a scary thing,
Credit cards can ruin any financial situation if used improperly. Let’s look at what our two financial authorities think about them. Dave Ramsey is completely against the idea of using credit cards. Being a devout Christian, he often finds his ways of financial teaching through The Bible. Proverbs 22:7 states “The rich rule over the poor, and the borrower is slave to the lender.” You are charged a premium for using a credit card in the form of interest. While you can pay off credit before the interest is charged, Dave insists that many people do not pay if off in time. It is better to get rid of the enticement altogether than to play with the idea of using a
The liberalization of the money related divisions in Asia has brought about the fast spread of charge card organizations and monetary organizations giving different sorts of purchaser credit. The charge card market in general world has extended radically that the guarantors of outside nations has presented cellular telephone Visas for the comfort of their customers.(Amin, 2008) This, combined with the passage of remote banks, has enormously expanded the quantity of credit cards accessible, and consequently such spending in Pakistan. Despite the fact that charge card was presented in Pakistan decades prior when Habib Bank, the biggest bank in Pakistan, dispatched its gold card, however individuals had scarcely think about this card in view of its extremely restricted issuance. Several years back, Master card was introduced by ABL (Allied Bank of Pakistan), but that also was not get good attention. In year 1994, VISA Card is introduced by Citibank, that give a better turning point to plastic money industry in Pakistan. The working of Citibank no doubt was amazing that open doors for new offerings for the people of our country as well as for financial industry
Most young adults my age have a credit card and take advantage of it. I have been eighteen now for a year, and I have been attending college for six months now, and I still don’t have a credit card. When I want to go buy a new outfit or a new electric item, I
In the case of credit cards, they can be a real friend if you encounter an emergency and run out of cash. Of course, you can't count wanting a new pair of pants as an emergency. Typical emergencies might include car issues, medical issues or unexpected travel needs. Credit cards also provide a great way to build your credit score as long as you have the discipline to pay them off on a timely basis without incurring too much interest. Finally, credit cards with a low APR and an aggressive rewards plan can provide great benefits if handle properly. What it all really boils down to is that credit cards offer no danger as long as you use them in a manner that doesn't expose you to extra costs or lead you into a difficult debt
The benefit of an open credit would the ability to purchase whatever you want at the time being even if you don’t have that money at that very moment. Open credit is definitely vital in an emergency situation where you might need instant cash that you don't, such as car running out of gas and needing to order a tow truck. Open credit is also great for allowing you to learn how self discipline especially with only purchasing things you absolutely necessitate and every few often a luxury item. However, if the credit card holder isn't responsible enough to stop themselves from buying that new video game with all the new fancy accessories that come with, then result in a huge bill to pay at the end of the month without thinking through where they would get the money from. Will result in drastic implications and major debt. The debt will continue piling on because of the interest for not being able to pay it by the end of the month. Overall one big mistake is basically a domino effect fow how badly miss using a credit card could impact your life. The downfall of closed end credit is the interest could go up at any given time depending on the plan that was
There are college students who get credit cards for the right reason and there are some who look at it as a way to get a little extra money. A lot of credit card companies target college students by using promotional offers such free t-shirts, cups, and many other items. Plus most college students are big spenders so they will definitely get there money worth. A lot of college students look at this opportunity to establish some credit. For the ones who don't have a stable job it will be pretty hard for them to make payments on time. It really doesn't matter if the student can afford to pay it or not because credit card will simply charge additional cost to customers account if they fail to make their payments. Either way the credit card company
Credit cards can help kids in emergency situations. Kids can not be expected to carry enough cash for some types of emergencies. For example, when Robert Jones's car suddenly stopped on the way back from his swim meet, he was able to call a tow truck and could pay for towing when he got to the repair garage. Similarly, when Amber Postovich ended up with no way home from a party, she was able to call a cab and drive everyone home instead of riding with a drunk driver. As you can see, if these kids did not have there credit cards they would have come face to face with a dangerous
Credit cards allow users to buy from merchants as well as obtain cash by using the credit on offer from a creditor such as a bank or other financial organisation. Credit cards can easily be used to purchase items all around the world. They are created and used for convenience and this is where an element of their misuse lies.
In my opinion I think teens should have credit cards. I think this because they would not be able to pay for there food or car bills. In paragraph three it states that they can not go to college without using money to pay for the stuff they need. The last thing is that they would have to carry there money. These are the reasons I think teens should have credit
To begin, getting your teen a credit card is a great way to teach financial responsibility. 80% or more of the graduating college seniors have credit card debt before they have a job. “Americans teens think they’re adults if they have a credit card, phone, and a driver licence, but sadly none of these so called “accomplishments” are anywhere close to real adulthood,” Deborah Fowles states.
Owning multiple credit card means just tend us to spend more because we have many credit card which mean higher balance amount. Furthermore, this also means that you need to pay a large bills and higher amount of debt.
As more and more professionals are availing credit cards, the researchers conducted a survey regarding the advantages and disadvantages of using credit card, reason for availing thes credit cards and the information of the card holders in paying their credit card debt in order to know the status of the sample whether many of them are stucked in a piled up credit card debt to be able to know the factors that affect credit card handling and the possible solutions for increasing amount of past due debts.
The credit cards are the small plastic cards granted to the buyer by a lender like a lender or credit union. The card company creates a revolving consideration with a credit line to the buyer. The cardholders can buy goods and services or get an advance loan until they reach their predetermined borrowing limit. The vendor who allows credit card obligations receives the amount of money from the lender issuing the credit card. The cardholder eventually repays the lender through regular monthly premiums. If the complete balance is not paid completely, the issuer usually charges interest on the unpaid section.
Debit Cards and Credit Cards may specifically and literally look the same but the uses, advantages and disadvantages of the two cards remains and will always be different.
With this, I can spend money that I have placed into my account and I am responsible for making sure that I don’t spend more than I have. I practice using credit wisely every time I make a purchase while making sure that it is something I can afford. For example, I wanted to drive down to the Lake of the Ozarks, which is roughly 180 miles from my house so that I could spend time with my dad while he was there for a conference. I knew that in order to make this trip, I needed to make sure that I had enough money to pay for gas, which was going to be around $60 round trip with some traveling there. When I went to check my balance, I saw that I already had $120 available, which meant that I could afford the trip down there and