CREDIT CARDS

Why Americans Should Not Use Credit Cards

Why Americans Should Not Use Credit Cards

Introduction

Credit cards (credit cards) are the most common form of payment worldwide to purchase services or products. Credit cards are actually a loan. It is a recurring line of credit (Recurrent loan). That means that you can shop until you reach the limit preset credit (pre-approved line of credit). The credit card allows you to buy things now and pay later. If you do not pay the debt complete, you must pay a fee for credit, called interest. If you have a loan, has a debt. This means that you must money to the company that gave him credit. Purchases made with credit cards should pay for full before the due date (due date). If you cannot pay the full amount, the card user will be charged interest also have to make a minimum payment (Minimum payment), which is a percentage of the balance.

Discussion

Credit cards, like all types of cards available in the financial market, have advantages and drawbacks that must be taken into account before obtaining one. We must take into account both general and specific requirements to be imposed by the bank and after much deliberation, choose one that suit our need.

Good Side of Credit Cards

Credit cards are comfortable to carry and use. It's much safer than carrying cash. It provides you liquidity in case of emergency situations. The credit card allows the holder access to a superior balance of what you have in your checking account, which gives a great flexibility. If a debt is amortized at the time agreed with the bank or savings bank interest is exempt. Allows you to withhold payment of a product or service does not meet the needs or expectations of the customer. The credit card is becoming the most common payment method online, because that usually include insurance that protects you from fraudulent use. The high cost of credit card is justified by the insurance coverage you have the card. Almost always includes different types of security will depend on the issuer and the contract it signed with the client. Generally, the most common insurance cover: Medical aid, Loss of luggage, Anti, and Accidents.

The Dark side of Credit Cards

Americans would be better off financially without credit card debt. They should not use it because many times they are unaware of the consequences of using credit cards. Lack of understanding about the system often led them fall in to the category of defaulters. Not all credit cards are same; in fact, all of them come with different contractual terms. People, with good credit history and aware of their contractual clauses, can negotiate the interest rate charge on the credit or can get higher limits and more perks. In this way, they exploit the card system in their best interest. This group of people forms a small minority. The irony is that rest of the majority are unaware of the contract terms & tried to ...