The Positive And Negative Cons Of Credit Cards

When using credit cards, practicing self-discipline and common sense will allow an individual to use the cards as an advantage (Lynott, 2008). Advantageous tips are to limit the number of credit cards to two for personal use and two for business, charge only what you can pay off at the end of the month because that is interest-free, carry cash to pay for small purchases because they add up quickly on a credit card, become knowledgeable about the interest and additional fees and penalties, and focus on items that are needed and not just wanted (Lynott, 2008).

Credit cards have become increasingly popular world-wide, making it easier to buy now and pay later but are they actually helping or hindering someone’s credit? “Maxed Out” by James D. Scurlock demonstrates how credit cards can hurt someone’s credit, while “Why Won’t Anyone give Me a Credit Card” by Kevin O’Donnell demonstrates how someone may have financial stability to pay off a credit card, but still be consistently denied one by the credit card companies. Owning credit cards is not the problem; the problem is being irresponsible with it.

There are both pros and cons to spending with credit. A consumer must be responsible for their spending and plan ahead for the future. Many people are quickly swept with debt a short period after receiving a credit card. Other consumers are wise enough to control their spending and limit their purchases.

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 purpose of usury laws was to regulate the maximum interest rates of loans. This law was created to protect borrowers from excessively high interest rates. It insured that lenders could not put the borrower in a situation where they were not able to fully pay off their debt. However, as said on investopedia.com, “In the United States, individual states are responsible for setting their own usury laws.”

The article states that credit card is useful as you can buy your needs today in modern societies.It povides three reasons of support . However, the professor explains that credit card , as other things else, has negative aspects . He refutes each of the author's reasons by explaining his points of view clearly.

As credit cards are for cardholders to make payments up to a pre-established credit limit, a credit card can help generate revenue for the bank. When there are late payments for the credit card, there will be an additional surcharge and interest rates applies on the

I learned many advantages and disadvantages of using credit cards. Our class was taught that using credit cards had many advantages: rewards points for using credit cards, easy access to money in case of emergencies, you are able buy things online, credit cards are universal unlike many currencies, etc. However, our class also learned about the many disadvantages of using credit: there is a potential for debt, potential for fraud, potential for identity theft, and many more things. While covering the advantages and disadvantages of credit cards, I made the choice that in the future I will get a credit card but only use when

It states that Americans have 1 trillion dollars in credit card debt. One of the consequences of using a credit card is if you miss a payment your interest rates skyrocket and you end up in a big mess with your money. This article goes on to say that many people keep a credit card for airline miles. The problem with this that there are fees. People have to pay eighty dollars a year for the card in return to get a free plane ticket in three years. That’s two hundred and forty dollars in fees receive which is close to equal the cost of a plane

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

As people get older, everyone tends to apply for credit. It is much simpler and easy to make larger purchases. Although, strict actions must be made, it is a full time responsibility and you must have the independence, organization and knowledge to receive credit. To use credit wisely, it is smart to first know what you are getting yourself into. Ask family members, friends, or financial institution any question you may have. Receive all the information you need before receiving your credit. Also, make sure that you are willing and financially able to pay back any money, plus interest and fees that may come from a credit card. Make sure that you will not be behind on paying bills, or be irresponsible with how you are managing your credit. A time I used credit wisely, was when I wanted to purchase a very expensive Michael Khors purse from their new collection.

For someone who is building their credit it can be a wise investment (Audette,2018). However, it can also be an unwise decision if one gets a credit card with a APR that we can handle causing us more stress and more money in the long run. I could say we really don’t need a credit card but sadly I am not able to say that because if you need to rent a hotel room or a rental car you need one, but for everyday purchases its convenient but not necessary. With proper budgeting one should be able to avoid credit cards

However, they are extremely controversial. People tend to have extremely strong opinions about credit cards. On one side, we have those who vehemently criticize credit cards as the modern evil that has brought financial ruin to so many Americans. At the other extreme, we have those who see credit cards necessary instruments for establishing and improving one's credit history and for learning financial restraint ("Credit cards," n.d.). So, which side is correct? Do credit cards spell financial doom or are they a useful and valuable tool in our society today? In order for us to honestly answer these questions, we must fully understand the advantages and disadvantages of credit cards. First, think about some of the possible advantages of having credit cards. The first thing that comes to my mind is convenience. Credit cards are so tiny that they can easily fit in your pocket. Also, most places readily take credit cards these days. And we cannot forget that credit cards can minimize our need to count money at the cash register or to wait to buy that must-have product until we get our next paycheck. Therefore, it is accurate to say that credit cards are relatively "convenient to carry and use" ("Credit cards," n.d., Pros section). Moreover, credit cards are accepted in quite a number of foreign nations, making traveling or online purchases a whole lot simpler. Credit cards also give you much more peace

In 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 purchase at a later date. Both cash and credit cards can be useful when you manage them wisely. While cash and credit cards are similar in that they both are readily accessible, used for goods and services at the time of purchase, they are dissimilar because of theft, high- interest rates, identity theft.

Bank credit cards have short-term benefits to consumers. They are a convenient way for consumers to be able to purchase items, pay bills, go on vacations, etc., without having the necessary funding for those things at the time of the transactions. The credit cards also benefit the banks that profit form the interest and late fees that consumers have to pay. In the long-term, consumers often find themselves in sever debt due to unmanageable spending habits. Thus, creating situations where very few banks and consumers profit from the use of the credit cards. So for some it has long-term benefits but for many others there is not.