Credit Cards-Plague Or Blessing

Credit cards are plastic tokens that have magnetic stripe and they are an alternative payment system, and can be used instead of checks  and cash. They are essential part of electronic commerce. But don’t get fooled they carry their own share of negative things. But due to their applicability those negative aspects are forgot (and there are many positive aspects of credit cards).

First of all credit cards are convenient method of payment because you don’t have to search for ATMs and you don’t have to carry large amount of cash in your wallet. And those credit cards have record keeping which will help you see where your money is going, and it can help you cut on expenses that are unnecessary but you have failed to notice how much money is going into them.

If there is a way to save some money by buying something from a sale and you have no cash available, using revolving credit (revolving credit represents a loan on a credit card, meaning that you can go in red on your card and repay that once you transfer money on that card) on your card will be your way out.

If you shop with credit card you will be protected from disputes with merchants who are unwilling to take back defective product. When that happens you just need to check with you bank and they will sort it out. Credit card companies are always promoting their product and they are willing to give you a wide array of discounts in different stores in order to keep cash flow on their cards. If you need to buy something checking for those discounts can save you a lot of money.

Think twice after this

Revolving credit is double-edged sword. It will allow you to spend beyond your financial situation at the moment, but using that too much will make you lose money in long run. Once you go in red you will have to repay that as well as interest that is attached to it.

You will have to do a lot of paperwork. Saving receipts and checking them against credit card statement to ensure that you were not overcharged will be a strenuous work, but you will have to do it only once a month.

Your fees will skyrocket if your balance is in red and you fail to repay it in time. And there are fees for any cash advance you perform. There is usual 2 to 4 percent fee, but some unexpected fees can occur. To inform yourself of all those fees the best thing would be to go to the website of your bank and do some research in that.

Many people end up with large debt on their credit card. This happens due to high limit those credit cards have and people don’t check that. Large debt carries larger interest rate and before you know it you will be in debt you are unable to pay-off.

As you can see credit cards have their negative sides, but if you take in consideration all pros and cons that credit cards have, they are valuable part of our life.

Author: Josphine Smith

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