Disadvantages of credit cards essay

Since then credit cards have gone from easily counterfeited paper cards to highly sophisticated cards with embedded computer chips that track your every purchase and automatically reports the charge to the users account. Unlike their predecessors which were limited to the store which issued the card, modern credit cards can be used to make purchases at most retailers, for online shopping, and to make cash withdrawals from ATMs.

Disadvantages of credit cards essay

Almost a decade later, American Express, another famous company, decided to introduce its own for travel and entertainment purposes.

A yearly fee was charged Disadvantages of credit cards essay the companies and bills were sent to the customers every month. In addition to this, the merchants also had to take care of the percent service fee charged by the issuers.

Few years later, a more innovative idea was made a reality. The banks started to issue these to their customers. The process was almost the same. Customers were sent the bills monthly but this time they had the option to pay the entire accumulated amount together or in installments.

This was advantages for some people and disadvantages for others. The reality is quite the opposite.

Advantages and disadvantages of credit cards essay

You can take it anywhere with you and you can make a purchase without having physical cash in your pocket. If we compare a credit card to cash, stolen cash cannot be recovered but a credit card can be.

It is very easy to cancel a credit card in case you lose your wallet or purse. You just need to contact your bank and your card will be frozen within minutes.

Later you can order a new card. If you lose your wallet full of cash, you may recover the wallet but the cash?

Second Advantages, with credit cards it is possible to get a charge back sitting at home. This means that all the purchases you make are safe. Plus, you can also get a charge-back from an online retailer! A debit card can perform the same function too but in many countries, only a few banks provide this feature in case of debit cards.

International payments are not that easy to make using a debit card but with a credit card, you can make a payment anywhere in the world.

Multiple Currencies Supported Pros The best and positive thing about credit card is that they support multiple currencies. So if you have dollars in your bank account, and you want to make a purchase in Pounds, leave everything to the little master.

This is helpful for those people who shop at overseas stores. Earn Points on Transactions Credit cards encourage you to spend more but benefits that they give to the customer is the points in form of royalties, discount and cash back.

Yes, this is true that some credit card companies have collaborated with famous brands and they give you a special discount if your purchase their products.

This is also having many advantages that you may also get free goods! If you are out of cash and you need to make a quick important purchase, credit cards are there to help you. This will allows you to borrow cash from the bank which you later have to pay.

This feature is very helpful when you need cash urgently. Advantages and Disadvantages of Credit Card in Points Disadvantages of Credit Card Disadvantages of Interest fee First debate or first disadvantages of credit card is that all the beneficial features are not free to use.

They come with a fee, a fee that is commonly known as interest. If you have decided to pay in installments, you will have to pay an interest rate per month on the accumulated payable amount. The interest rates can be as high as 20 percent per annul and that is not worth it.

You may have to pay two times more than the original amount.

Advantages and Disadvantages of Credit Card Essay in Points

If you are not able to repay the accumulated amount, you may find yourself in deep trouble! Hackers are always looking for victims. It is better to see the certificate of a website before inputting your card information because if you get targeted by a predator, you may have to face legal authorities.

Always use a website which uses https instead of http. Disadvantages of Annual Charges A credit card has an annual fee unlike a debit card.

You may have to pay 30 dollars of even dollars per annum for keeping your credit card alive. It depends on the type of card you own. The more features you want to use the more fees you will have to pay.Sep 02,  · A lot of credit card also offers insurance benefits like theft insurance, travel insurance etc.

which can be useful when your credit card is stolen. Disadvantages of Credit Card We saw all great offers and convenience a credit card offers but some times it’s not all that rosy.4/4(1).

Disadvantages of credit cards essay

Disadvantages of credit cards: The biggest disadvantage is that they are inviting cardholders to spend more money that they don’t yet have. It is far too easy to spend more than you can afford using a . Sep 02,  · A lot of credit card also offers insurance benefits like theft insurance, travel insurance etc.

which can be useful when your credit card is stolen. Disadvantages of Credit Card We saw all great offers and convenience a credit card offers but some times it’s not all that rosy.4/4(1).

Advantages and Disadvantages of using a Credit Card Credit Card is an Automatic advanced card which people can use it to get the goods without paying the cash. Credit cards are widely use by people all around the world as a . - Credit cards: for some they are the paths to financial freedom, for others they are a necessity for daily purchases.

During the recent economic crisis, many have sought out to find the cause. One common suspect is the credit card industry, which is comprised of more than six . The future credit card user should carefully study every?credit card deal and revise his or her payment possibilities to suit.

There are a lot of advantages. Advantages of credit cards: Credit?card reduces need to carry cash or checks. A credit card means you don't need to carry huge amounts of cash around and risk losing it.

Using Credit Cards – Advantages and Disadvantages - attheheels.com