A credit card is an automatic advanced card. Nowadays, credit cards are widely used
sources for convenient credit such as hotel, medical care and others. These are some advantages of using credit card such as record keeping on your spending, delaying expenses in buying something and more safety than cash. However, it also have disadvantages of use it in misuse consequences such as unexpected expenses, irresponsible spending and be swindled by dishonest person.
There are many advantages of credit cards. One of the advantages is you can record everything that you bought and paid. For example, a person that starting a new business venture, they will know whether they have paid their debt or not. Plus, you can know your expenses by the record on the receipts. Thus, you can control your expenses for the next purchases. Second, some credit cards offer additional rewards and benefits such as discounts. The discounts from particular stores or companies, bonuses such as free airline miles or travel discounts, and special insurances enable us to purchase items with lower cost than using cash. The Credit Card Advantages website says that some also provide benefits like free travel insurance, rental car insurance, and protection for theft, damage or loss of items purchased with the card. Third, by using the credit cards, it is more safety than cash because it is dangerous if you carrying a lot of money and therefore, it often more convenient if we use credit card. When you have your card in your wallet, you don't have to carry cash that can be lost or stolen. Moreover, if your credit cards is lost or stolen, you can report the missing card to the card company which the company will then stop accepting any charges on your card.
However, there are also the disadvantages if you use the credit cards. The disadvantages are unexpected expenses, irresponsible spending and been swindled by dishonest person. The unexpected expenses can raise issues of budgeting for yourself and family. It becomes a loan when the credit becomes due and you do not pay for it. In other case, it can add monthly interest charges, which means pay more for the goods that you bought. Irresponsible spending may arise if have credit card and it can be viewed as a license to us to spend up to a maximum credit limit. Based on that, it often encourage user to spend beyond their control and it can be difficult to repay. Some other user, they have been swindled by giving their credit card numbers to dishonest salespeople over the phone or other supermarket. They realize that when their card is use fraudulently which means other person was use it without their knowledge. For example, user give their credit card number to salespeople or other agency that require us to give our pin number and told us that we won something.
As a conclusion, we can say that credit card have disadvantages and also advantages. The advantages of having credit card is convenience and safety if we use it carefully but nevertheless, if we use it misuse condition at budgeting and managing our finance, it can leave us with a lot of debt that’s very difficult to pay back. Credit can give an advantage but in spite of that it also can give us more disadvantages.
