But, there are many advantages and disadvantages of using it.
While credit cards offer numerous benefits, it is important to understand their advantages and disadvantages before utilizing them as a financial tool.
When recording financial activity of a business, “any increase in expense (debit) must be offset by a decrease in assets or an increase in liability (credit)” (Routh 464). Any expense for any office supplies decreases cash or increases accounts payable. Each account is assigned a number to enter data in a list of categories “to track the sub-accounts of assets, liabilities, income, expenses, and equity” (Routh 464). This is a way to bookkeep the charts of accounts.
When recording financial activity of a business, “any increase in expense (debit) must be offset by a decrease in assets or an increase in liability (credit)” (Routh 464). Any expense for any office supplies decreases cash or increases accounts payable. Each account is assigned a number to enter data in a list of categories “to track the sub-accounts of assets, liabilities, income, expenses, and equity” (Routh 464). This is a way to bookkeep the charts of accounts.
And, credit card fraud also is one of the disadvantages.
Porcini’s Pronto Tom Aleso, who was the Marketing vice Director of the Porcini’s Inc., had a good idea of expanding the company’s business of operating the restaurants. He identified an opportunity in creating more full-service chain restaurants that would serve the highway travelers. It was a brilliant proposal since the only competitors that were serving the market then were a few people operating low-end fast food restaurants and small outlets. In fact, this augured well for Porcini’s full-service restaurants and there were signs that they would be embraced by the customers who needed full meals at the rest stations in the course of their journey. However, the biggest challenge that stood along the way was insufficient capital and lack of resources to start up the business, and there were concerns about the quality of the initial services.
Your credit card rewards options are almost endless. Get a co-branded card offered in partnership with a hotel chain, clothing retailer, or even a nonprofit organization like AARP, and you can leverage your everyday spending to earn valuable rewards day in and day out. The trick is finding the card that best fits your spending patterns. Doing the inverse—altering your spending patterns to fit with a particular card—can be counterproductive. But if you're already spending money on a regular basis with a certain retailer or have an affinity for a certain hotel, why not use the card that will encourage your continued patronage by offering you enhanced rewards, discounts, and perks?
Debit cards had changed life for many people, mainly the middle and lower classes as debit cards at the time were specific to where you were shopping. They were more to promote loyalty and better business for the businesses using them than they were to make it convenient to use. Though it was convenient and not too long after the fact credit cards issued for all kinds of transactions were released, impacting society even further. Companies such as oil industries and U.S. department stores were the first to issue these debit cards specifically for their use on their companies product only, however bankers soon followed
A credit card is a , usually issued by a , allowing its users to purchase , or withdraw , on . Using the card thus accrues that has to be repaid later. Credit cards are one of the most widely used forms of payment across the world.
Advantages and disadvantages of using credit cards.
In Carlos Macias' essay, "'The Credit Card Made Me do it!'-The Credit Card industry's Role in Causing Student debt", he discusses how credit card companies employ different tactics to put college kids into debt, in order to make money off of them. Macias, being a college kid, attempts to make all other college kids aware of credit card company schemes. Macias puts "most of the blame directly on the credit card companies," (274). I believe that the person with the credit card is to blame for the debt because anyone who has a credit card goes in knowing that they must pay off their bills. However, I find it wrong for credit card companies to approve college kids for a card when they state that they do not have any source of income.
Advantages and disadvantages of using credit cards [Internet].
Personal finance experts spend a lot of energy trying to prevent us from using —and with good reason. Many of us use credit cards irresponsibly and end up in . However, contrary to popular belief, if you can use the plastic responsibly, you're actually much better off and keeping cash transactions to a minimum. Using a credit card responsibly can be convenient, rewarding, more secure, and beneficial to your credit score.
Here are the top 5 advantages of using credit cards:-
Hence, many financial transactions would be easily completed by a card.
To sum up, in spite of the some drawbacks, credit cards are probably people's options to use their money rather than using cash in some ways.
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To conclude, it can be clearly inferred that irrespective of all the credit card advantages and disadvantages, you should go for buying a credit card for yourself. As you do so, include habits like paying your credit card bills well in time, and handling your credit card expenses responsibly in your financial routine, which will eventually lead you to availing the maximum benefits that a credit card has to offer.
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The size of most credit cards is 85.60 by 53.98 millimetres ( in × in) and rounded corners with a radius of 2.88–3.48 millimetres (– in) conforming to the standard, the same size as and other , such as . Most credit cards are made of plastic, but some are made from metal.