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Pros And Cons Of Credit Cards

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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 “promise of future payment” (Rommann). Credit cards are extremely quick and convenient, sometimes
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With all of that said, credit card use has many drawbacks. “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 interest 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 “bad risk” and doesn’t trust that they will pay them back. The costs of bad credit may also include, “trouble getting a job or security clearance, trouble getting a cell phone
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