Advantages and disadvantages of credit cards

 

Advantages and disadvantages of credit cards

 

There are numerous spectacular advantages as well as disastrous disadvantages of credit cards.  Many people benefit from them but some do not.  Why?  The reasons are listed in the following paragraphs.

 

Credit cards are convenient, safe and easy to carry.  The users may not need to carry a lot of cash.  Monthly statements to users will let them keep track of the ways they spend the money.  Some of the credit cards offer interest free payment or period of up to fifty-six days to pay back.  There’s no need to exchange for a lot of money in the other currencies when one gets overseas.

 

Some shops team up with the banks to give interest-free installments for the consumers.  For example, the purchase of electrical items such as refrigerators, air-conditioners; other items are computers, cars, lorry, gas equipments …etc.   Some institutions even offer the interest free services to users.  The examples are tourist companies, movements of houses companies, cosmetics, beauty salons…etc.  These attractions are widely and especially welcomed by the employees and citizens of Hong Kong holding the credit cards. 

 

E-shopping is encouraged by many companies.  They usually use credit cards as forms of pay-back for ordering products and services.  For example, the cinemas and gift campanies provide such services.

 

It is considered fashionable to spend by credit cards.  Thus, a favorable status is created.  The customers directly get the privileges of discounts into the price.  Bonus points are earned.  Fabulous prices are offered to the users.  Coupons are sometimes given.  They provide special discount for certain products.  Direct credit is usually given into the account, too.

 

Lastly, the credit cards service boost the local economy for it creates lots of job opportunities, for example, the customers’ service hotlines.  It is desirable as a solution to the immediate financial problem. The customers pay back the money after pay day so that enough time is granted to the users.

 

However, the disadvantages of credit cards are evidently disastrous.  It is because of people’s carelessness and overdraft in spending money.  The large sums of money to be paid back to the banks form very heavy burden.  Some youngsters over-spend just because of vanity.  They think that using credit cards is a form of glory and showing superior status among their friends.

 

Credit cards are useful ‘weapons’ in this modern world.  They help us to live more freely and leisurely.  However, we must take note of their dangerous disadvantages they bring to us.  If something is used correctly, it will be of benefit.  If used incorrectly, it will do harm.  Just as the famous Chinese proverb says, “The water that bears the boat is the same that swallows it up.”  In case of credit cards, there is genuine truth in it.

Mary