Credit cards can be a blessing and curse - Essay Example

Comments (0) Cite this document
The growing tend of using credit card has allow individuals to easily borrow; it can be a double edge sward that has benefits as well as…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
Credit cards can be a blessing and curse
Read TextPreview

Extract of sample "Credit cards can be a blessing and curse"

Credit cards can be a blessing or curse Credit cards allow individuals to shop on credit from the bank; it allows personal finance, facilities one shop on credits and easy borrowing. The growing tend of using credit card has allow individuals to easily borrow; it can be a double edge sward that has benefits as well as drawbacks. Credit cards are a basic source of consumer credit and they have become one of the common causes of personal finance problems as they allow individuals to borrow beyond their ability to pay.
However, the use of the credit card is also a blessing as it is convent to use; instead of carrying a large sum of cash one can makes purchases through a credit card. The monthly statement of your expenditures can allow individuals to keep a record about their expenditures. It allows one to trace that where he is spending more. In addition, credit cards are also a quick source of emerging cash at the times of need but are dependent on the credit line of the customer. If the individual makes monthly payment on time it can build credit rating.
On the contrary, credit card has enormous of disadvantages. In the contemporary times, high inflation rates and strict monetary policies have made credits expensive. A certain amount of interest is charged on every purchase, which eventually increases the price of the commodity more. In addition, the easy excess to borrowing allows one to spend more than his or her limits. This shows that individuals spend more than their capacity and this eventually lead people to face credit issues that can also influence reputation. In case of the monthly payments being delayed, a penalty fee is charged on the late payment. This penalty becomes burden for the person who is already facing issues to pay off his or her pervious debts. Moreover, the interest rate that is being charged on the credit card is a lot, the lowest interest card rate is about 11.18 percent, which goes up to a high of 23.95 percent in current times. This means that purchases on credit cards are far expensive than purchases made with cash or debit cards. In case, if your credit card is lost or stolen the others can misuse it. The misuse of the credit card can lead an individual to face certain legal issues till they are cleared. Furthermore, banks charge additional amount of about $50 for the lost or stolen of the credit card. As monthly payments on time can improve your credit rating, contrarily in case of late payments credit bureaus reduce your credit rating that can be a major obstacle for the approvals of future loans. Credit cards spontaneously develop a strong temptation among people to do heavy shopping by using them. People often cannot resist the temptation to live the life according to their wishes; as a result people accrue huge credit card debts. This can also become an addiction for individuals to spend more than their income that can influence their personal financial status. It shall be noted that there are very few advantages of credit card, but it has more and long-term disadvantages, therefore, I believe that the credit card is a cure more than a blessing. Read More
Cite this document
  • APA
  • MLA
(“Credit cards can be a blessing and curse Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from
(Credit Cards Can Be a Blessing and Curse Essay Example | Topics and Well Written Essays - 500 Words)
“Credit Cards Can Be a Blessing and Curse Essay Example | Topics and Well Written Essays - 500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Credit cards can be a blessing and curse

Credit cards

...until 1987. MasterCard allowed their customers to have a ‘revolving balance’ (Gerson and Woolsey, 2009). Therefore, 1959 marked the beginning of flexible payment but also the beginning of finance charges for customers. In 1966, credit cards were now accepted for the payment of a variety of purchases and in 1967 Barclays launched the first credit card in the United Kingdom. From this time the bank card industry grew at a rapid rate. Presently, more than fifty percent of all transactions in the United States of America and the United Kingdom are made on credit cards. This explosion of the use of credit...
5 Pages(1250 words)Essay

The Opium Poppy: Blessing and Curse

...? Biology {Unit – of of The opium poppy: blessing and curse Opium refers to an additive narcotic drug that contains alkaloids such as papaverine, codeine, and morphine. Preparation of opium requires the dried latex of green seedpods of the opium poppy as the raw material (Szablewicz, 2010). Opium poppy has a complex history as it has brought great problems, as well as great benefits to the human society (Lee et al., 2011). This is, probably, among the earliest medicinal plants that human beings had discovered. In the present day, cultivation of opium poppy takes place in many countries worldwide, notably Turkey, Poland, Holland, Romania, Iran, Afghanistan, Canada, just to mention a few. This discussion...
3 Pages(750 words)Research Proposal

Credit Cards vs Debit Cards pay the money without interest. The disadvantage is that the interests pile up rapidly in case the money spent is not paid within the billing period. When used responsibly, credit cards can be of great help as they help the user build credit, which can eventually result in rewards and gifts. This paper focuses on effects that credit and debit cards has, how it can put you far in debt and how it impacts your credit. The advantage of having a debit card is that you can use it to shop in various places all over the world. Additionally, most ATM...
4 Pages(1000 words)Essay

Is technology a blessing or a curse

...?Is technology a blessing or a curse? Ed Bell in his article “Technology, Movement, and Sound” discusses what he terms as our indiscriminate use of technology at the expense of our physical health. In order to illustrate this idea, he makes a very simple but pertinent comparison between the use of a rake and a leaf blower. He describes how and older tool such as a rake can be more efficient and beneficial to the health of the user through the physical exercise he gets when he uses it. In contrast, he states that the leaf blower, although technologically more advanced, is not really that beneficial to the user and even goes as far as to suggest that it may be harmful to him because it makes an awful lot of noise and does not exert... and...
3 Pages(750 words)Essay

Credit Card Debt

...the negative effects that out of control credit can have on a student's academic performance and their health. It can be a problem that has the potential to escalate into a lifetime of agony. B: Final Appeal: A credit card can be a blessing if you need emergency automobile repair. It can also be a curse if the user doesn't understand the ramifications of making the payments. A course in credit management could instill a sense of responsible use, an understanding of the fine print, and eliminate the problem of massive student debt. Works Cited Colina, Stacey. "Break the...
4 Pages(1000 words)Essay

Managing Credit Cards

..., entertainment and travel. Students wanting to get away for the weekend end up hiring automobiles to commute to places away from the campus and incur heavy bills. Students end up paying these bills through their credit cards. Always assess the comfort zone limit of credit that one can avail before embarking on a holiday, shopping, or campus activities. This will help the student plan his/her repayment schedule, and avoid unnecessary expenses that could prove to be an embarrassment later. Manage as much payment as possible by cash. Stay away from the minimum payment plan as this will significantly lengthen the pay off time. The longer the duration of the repayment...
3 Pages(750 words)Essay

Useful Financial Tool: Credit Cards constantly update legislation and penalties because of the evolution of fraud schemes and the increasing economic impact of plastic crime. Karstedt and Farrall (2006) highlight the need to understand that such crimes are not just financial or economic crimes but more importantly, that they have their social implications since credit card fraud directly affects consumers. In a similar manner, Gupta and Sareen (2001), believe that such fraud have a profound and pervasive impact to the macroeconomics, if not international commerce, because they can severely reduce confidence in trade and increase the costs of maintaining security for commerce. Criminals’ activities continually probe the...
30 Pages(7500 words)Essay

Sports prodigy a curse of blessing

...Topic:  Sports prodigy a curse or blessing Being sports prodigy is a curse as the health of a person is more important than anything else in this world for a person. A prodigy means a person who has skills and ability more than their age and more than what their health can take. In sports, people need to have stamina and strength according to the age not less not more. According to (Sammons)“Sports and physical activity should be fun for kids. It shouldnt be, ‘Youre going to be the worlds greatest athlete or ‘Give up now, kid, because you wont have a chance because of your genes." A kid should not aim to perform like a matured man in the sports as it can hurt him mentally and physically. A child sometimes may project a health... which is...
2 Pages(500 words)Essay

Islamic credit cards

...“, which facilitates the user to purchase any product or service without paying cash money. Fowler explains the credit cards as any coupon, single credit device, card or plate that can be used to get labor, services, goods or cash on credit. Such a card allows the user to make the required financial transaction without paying any money. The current technological development has given more powers to the buyer for purchasing goods and services on line. However, this requires an instrument that can facilitate payment to the seller at the time of such purchase. The credit...
3 Pages(750 words)Essay

Credit Cards

...Subject to individual’s financial status Subject to status Late fee 2.5% 6% of Past Due Amount per month 13.68% Cash advances rate fee 22.99 percent 22.99 percent 23.6 percent per annum Transfer rate fee 3.5% 3% 2.9 percent of balance transferred Being a student credit card can be a very useful first step toward financial independence. It is a way of building the kind of credit that can help secure my loans, housing, even employment in future. I also need immediate communication on my spending without necessarily travelling. A credit card can also be the step number one toward the kind...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Credit cards can be a blessing and curse for FREE!

Contact Us