Use of Credit in the U.S. Essay

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.

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

Making mistakes when it comes to your credit is a lesson that many people learn the hard way. Constant phone calls, mail, and threats can make a tough financial situation worse. Either how well or how poorly you manage your debts and finances are available to creditors to see when you apply for credit, such as for a retail store card, or even an auto or home

5. Excessive spending habits: Not everyone is budget savvy. Some individuals let their wants or desires drive their spending habits by purchasing items and services that are not a necessity for basic living. Credit card spending can help fuel this type of habit. Too much credit card debt could ultimately change the borrower’s ability to repay for their mortgage and other liabilities.

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

In the 1800’s I believe it was nearly impossible for people to spend more than they financial could because loans were not as easily accessible. In this modern age a common form of a loan that allows almost anyone to spend beyond their financial capabilities is a credit card. Credit cards are pieces of plastic that allow you to buy products and services with the money of the credit card company. However, this money isn’t given to you for free. All the money you spend must be paid back to the credit card company at the end of each month. This is where a potential problem could be created. If people spend more money than they can pay back they acquire debt. The acquired debt then accrues interest when you don’t pay what you owe. This causes the debtor to generate more debt every time a payment is unpaid.

In the case of credit cards, they can do irrevocable damage if not handled in the proper manner. If you tend to be an impulse buyer, they provide access to buying power that might exceed what you can actually afford to spend. After rolling up large debt balances, the monthly interest charges can become financially debilitating, especially if you get in the habit of making minimum payments. If you make late payments or miss a payment or two, your credit score is subject to a material hit, which compromises your ability to secure credit in the future. Finally, the stress you might experience as your debt troubles related to credit cards start escalating have the potential of causing you both mental and emotional hardships. The bottom line is you need to avoid credit cards if you can't handle them responsibly.

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.

Some people say Credit Cards, are good but then again some people don’t agree on that. I am one of those people who don’t agree that college kids should not have Credit Cards. Why, because we are not responsible yet. They can’t pay off their Credit Card and they use it for the wrong reasons.

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

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

Money is everywhere used for everything and in a world of finance comes credit. Credit is used to buy things with money you don't have yet and pay it off at a later date. While credit may come in handy, if you have low credit scores you may not be allowed to take advantage of the benefits of credit.

The advantages of credit cards are countless. With credit cards, an immediate purchase for an expensive Macbook Pro is possible without obtaining enough money (Sandberg). Secondly, if a job is lost, one can live off credit cards (Yuille, “Pros And Cons”). Additionally, even with enough money, there is no

Credit cards slowly and steadily have become convenience of modern society and a symbol of a developing modern global economy. They let you shop on credit and save you from the troubles of searching for an ATM or keeping cash on hand. Also, additional benefits of credit cards such as special offers and reward points are can make shopping fun and also helps banks attract new customers.

Credit is borrowing someone else’s money for a period of time. A creditor is a business person who loans money on credit. A debtor is any person or business that buys on credit or receives a loan. Credit cards can be used in an efficient way or in an inefficient way. Borrowing money can help a person have a comfortable living or it can lead them draining away their savings.