Are there reasons for credit cards? Do we really need them considering that so many people are getting into severe credit card debts? Practically everyone from teenagers to retirees, most people have at least one credit card. There are advertisements all over the place. You can see them in newspapers, billboards, television and radio amongst others. You also get many direct mailers from credit card institutions.
The credit card is simply a financial arrangement between you, the card user, and an institution, which in most instances is a bank, from whom you can borrow instant money with a promise that you will repay them in the future. The institution then agrees to give the money you need and they expect you to pay them within a certain time. If the full balance is paid monthly in a timely manner, you will not be charged any extra. Otherwise, you will incur an additional charge, which is the interest amount.
There are many reasons for credit cards in our daily lives, making it a useful tool for today's consumers.
1. Convenience
You may not have ready cash in hand, but you can buy what you need using your credit card. It also means that you do not have to carry a whole lot of cash around.
In some instances, like online-based shops and store, such as Amazon, they mainly accept payment through credit cards. Having cash will not help in such cases.
2. Emergency Protection
Credit cards come in very handy in emergencies, like if your car breaks down or you need to repair some equipment and do not have cash in hand.
3. Security
It is very risky to be carrying around a large amount of cash. If the cash is lost, there is almost no way to get it back. If you lost a credit card or it was stolen, you can report this immediately to the institution that issued the card so that they can cancel the card and stop any further charging to the card. They will then give you a replacement card within a few days.
4. Traveling
If you travel often, whether within your country or internationally, it is much more convenient and safe to use a credit card.
There are many reasons for credit cards becoming a useful and convenient tool. They must however be used responsibly. It even helps in keeping detailed record of expenditures. However, remember that if you delay payment, you will incur interest charges. If you are not careful, you can get into a difficult debt situation. So, be prudent in how you use your credit cards.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
FICO credit score
By: evan7711 | 28-02-2007
How do I find out my FICO score? Also, how can I raise my FICO score and get better credit?
Credit cards & debit cards
By: drabsv | 08-02-2007
Why are credit cards the preferred payment method for online transactions over debit cards?
Anybody knows when will the Mini Visa Cards reach ...
By: Tamir | 17-12-2006
Anybody knows when will the Mini Visa Cards reach Israel?
Q&A Powered by:
Latest Non-Fiction Articles
Don't Let Good Grammar Spoil Good Writing
By: Philip Yaffe | 19/08/2008
Good grammar is fundamental to good writing, right? Wrong. However, years of experience working with people who use English as a second or third language have demonstrated that focusing too much on grammar can actually be detrimental to good writing. It's a question of priorities.
Modern Helicopters-the Eh-101 Merlin
By: K. Crockett | 16/08/2008
AgustaWestland is a joint venture formed by Agusta of Italy, makers of the A-109, and Westland of Great Britain, makers of the Lynx. The EH-101 is a direct competitor to the Sikorsky S-92 and was developed for both military and civil roles.
Animals
By: shivani suraiya | 15/08/2008
All about animals. About their origin, their lifestyles and their habitats including some interesting facts on different subjets. mostly based on mammals overing all extinct mammals around the world and which are not very well known.
The Three Speech Writing SECRETS You MUST Know - The Definitive Speech Writing How to Guide
By: Stuart Brown | 15/08/2008
In this article I am going to explore several techniques as to how you can improve your speech writing abilities, and also how to approach writing a speech for certain different circumstances. Whether it be for a wedding, where perhaps you are the best man, or for an important business meeting where you really need to impress. And tell you the three secret ingredients every speech needs.
Writing Your Thoughts – the Carrot and Stick Strategy
By: Nick Sanders | 14/08/2008
When you are writing, having a strategy in mind is rather useful – especially when you are wanting your reader to commit to something or someone. You will want to lead the reader in the direction you intend to finish upon and don’t want to cause confusion and misdirection in your writing. Here are a few tips on the carrot and stick strategy of writing that is good to use in a time of need.
Science: Guaranteed to Curb Creative Thinking!
By: Natasha | 13/08/2008
In today's sci- fi world dominated by facts and figures, the essence of life and belief in God's miracles have been thrust aside as illogical and futile, nonetheless God NEVER fails to surprise us....
How to Develop Your Book’s Structure
By: Melinda Copp | 12/08/2008
A man came to me last week because he needed help writing his book. He told me that he’s had this project on his to-do list for years, but he just couldn’t seem to get started. He’s literally been staring at the task—start writing my book—almost every day, and when he came to me, he still hadn’t done it.
How to Write a Bibliography
By: Stuart Brown | 11/08/2008
If you're like me, you probably put your heart and soul into creating a wonderful paper, essay or article. You know that you conducted the necessary research and that you wrote a sound paper. However, you are now at the end and you may be wondering, how can you write a bibliography? Well, I am here to tell you how.
More from Regina Maniam
What Is Life Coaching?
By: Regina Maniam | 26/02/2007 | Coaching
Are you wondering what is life coaching? It is becoming increasingly popular and something that you may want to consider for yourself.
Do You Really Need A Debt Consolidator?
By: Regina Maniam | 21/02/2007 | Finance
If you have decided to do debt consolidation, then getting a debt consolidator may seem like the natural next step. Debt consolidators, of course, will make it all look very straightforward and give you the impression that all your debts can be neatly arranged into one that is even looks lighter. Unfortunately, for a lot of people, this turns out to be a bad experience.
Leadership Styles - Practice Effective Leadership
By: Regina Maniam | 20/02/2007 | Self Help
Much is written about leadership styles and techniques. There are biographies of leaders that have inspired people. But how do you outlook leadership and how can you become an effective leader?
Mind Techniques - The Way To Achieve Your Dreams
By: Regina Maniam | 15/02/2007 | Self Help
Did you know that there are mind techniques that you can use to better your life? After all, you spend time at work, watching television, reading the papers, going out to have a fun time. Would it not be worthwhile to enhance your mind power to achieve greater heights?
Internet Home Business - Pros And Cons
By: Regina Maniam | 15/02/2007 | Home Business
Having a internet home business is less stressful than an office job. No rush hour traffic to reckon with and you decide what time you wake up in the morning. But there are both pros and cons to this.
An Effective Leader - Would You Like To Be One?
By: Regina Maniam | 12/02/2007 | Coaching
Have you felt the need for an effective leader in your work place? Have you felt frustrated that there are a lot of activities and yet nothing seems to get accomplished? Targets and objectives are forgotten. Is it then time for you to do something about it?
How To Get Out Of Personal Debt
By: Regina Maniam | 12/02/2007 | Finance
Personal debts can see your hard earned money vanishing without you even realizing it. What are the steps you can take to control this?
True Happiness - Where And How To Find It
By: Regina Maniam | 07/02/2007 | Motivational
Have you wondered how and where to find true happiness? Why is it that even if things go well, you still feel unhappy? Read this article to find out the why, how and where.
Writing 
