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Advantages and disadvantages of different payment methods
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Why People Prefer To Use Credit Cards
You have a choice of paying by cash, debit card, online account or credit card. If you do not have money in your bank or online accounts, then either you go without, or you use your credit card. But, what about the people who have money in their bank account and still use their credit card.
Are they tempting fate by inviting the potential for problems? After all, one unexpected expense, and the credit card user won’t clear his/her balance…and before you know it…credit card debt. Here are the most common reasons why people with money in their bank account may still use a credit card.
Some Credit Cards Offer Cash Back On Certain Purchases
INSERT - Fry Says Shut Up And Take My Money GIF http://www.moneysupermarket.com/wp-content/uploads/2013/09/tumblr_mn02d2vD9l1ryu3g1o1_500.gif Credit card
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Suffice it to say that properly managed credit card use may improve your credit rating, and responsibly using XXXXX may help you improve your credit rating with your credit card.
Most Credit Cards Offer Fraud Protection
This fact alone is often enough of a reason for some people to prefer their credit card over their debit card. If you report an unauthorized charge to your police and your credit card company, and they find no evidence that you lied, then you usually get your money back. There are numerous terms and conditions, such as not paying if you were negligent, but usually you get your money back.
Some Credit Cards Are Better Used In Foreign Countries
Some credit cards allow you to spend in a currency that your debit card doesn’t carry. Some credit cards are preferred in other countries rather than your non-national debit account. Some foreign countries are smothered with corruption where you need the fraud protection that your credit card has.
Most Credit Cards Have Purchase
Over-Utilisation of Your Credit Card Limit: People often over utilise their credit card limits and this result in a high credit balance in their account. High balances on credit cards are also a cause of low credit scores. It is always better to pay your credit card bills every month. If you are not able to control your spending habits, then it may make sense to go for a card with a lower limit. This way, you will not build up a large debt and easily be able to pay all your dues. Another thing to note, credit card bills have a minimum sum to pay along with the overall outstanding. If you are unable to pay off the total amount you owe, it makes sense keep paying the minimum amount due until then.
Everywhere public place you go it is hard not to run in to the idea of the credit card. You will see credit card logos on the front of every business. Every department store you go in has it’s own version of a credit card from Target to Macy’s. The Diner’s Club Card that originally was only for businessmen to eat lunch at 27 different restaurants. Now it is accepted almost everywhere. And for everything else there’s Mastercard……(or Visa, Discover Card orAmerican Express.
Credit cards are something that are almost needed in everyday life now, as most dont have the money available to purchase a car or house and so need credit, thus needing credit cards to help build that credit. Those cards are hard to handle, and receiving applications in the mail daily, and commercials appearing on television don’t seem to make the struggle of staying away any easier. This starts to spark an interest. So people begin to think, "I think I 'm responsible enough to get a credit card, I 'll only use it for emergencies." Then the application process begins and it may take a couple times to finally be approved for one. This only makes it worse, of course, because realizing how long a credit card wasn’t applicable to life, but now
We all need money to buy commodities and meet other needs. This is the reason why you need to need to build your credit score. You will note that if you have a bad credit score can hinder you from getting money when you need it. There are instances where you can access a loan when your credit score is poor. In this case, you might repay the loan with a high interest.
and get the card in your name with no intention of making payments. Credit card
To me, good credit is almost an equivalent to good reputation. If you have a good reputation, you gain trust and respect and are able to have opportunities that others would not. Likewise, if you have good credit, you are able to gain more financial opportunities like lower rates and more opportunities to make larger purchases. For example, if you want to buy a house, a good credit score may allow you to purchase that house at a lower interest rate or even at all. Of course, like reputation, a credit score can also be a way of judging yourself and how reliable you think you are.
But it's sometimes difficult to travel without Mastercard , Visa or Amex. So ask your bank for a Debit Card instead. This will only let you spend as much as you have in your accout, so you won't come back from a fantastic break to a whole pile of worry!
When it comes to convenience credit outweighs cash. It’s always easier just to pull out a card and swipe rather than pull out cash and should give exact change. Swiping a credit card is also less time consuming which can be convenient when running low on time. Credit also lets you keep track of your transactions, that way you know where your money is going. I know personally that keeping track of my
Some credit cards will not do a credit check, for example, but will just need to see how much money you are making currently. If you are making enough, they will give you a card. This may not have all of the same rewards points and benefits as the other cards, but it will be a good first step. You can sign up for a card like that and then make sure to get every payment in on time. As you gradually build your credit up in this way, you may become eligible for the more traditional cards.
My first reason is that not everyone in the world takes only forms of electronic payment but also in the case of a city-wide emergency where there is no electricity there is no way to pay for items as a time of disaster. That would cause a panic among people who cannot obtain supplies. Some places are not that safe to use your credit card information that contains confidential identity that then it is quite difficult to fix fraud cases. Identity theft is a big issue that is hard to control and many skimmers who are always trying to steal your important information exist. According to article published by Bloomberg that big banks in Sweden are embracing a cashless society.
By offering consumers both a means to pay for goods and services and a source of credit to finance such purchases, credit cards have become the most widely used credit instrument in the United States. As a payment device, credit cards are a ready substitute for checks, cash, and debit cards for most types of purchases (Federal Reserve, 2013).
If you begin to ignore the expenses of a credit card, your interest begins to rise dramatically in cost, and it will put you in the very dangerous situation of bankruptcy. This is the reason why you do not need a credit card and it is not necessary for survival. The awe-inspiring FICO credit score is not the be all end all. I have recently learned a lot from Mr. Fisher’s economics class that it is much better to carry around cash. This is due to many different reasons.
If we don 't have credit cards, we can’t build our credit history. If we don 't have a credit history, we aren 't allowed to buy cars or houses with low monthly payments. Having credit cards is a cycle in life because without one thing, we can 't have the other. When people have credit cards they have to use them. It doesn 't help that banks offer many credit cards to people, ending in high debt. Banks also encourage low monthly payments. If people pay low monthly payments, they will never end up paying their credit card debt off. They will probably end up paying for the objects they bought, two or three times. People aren 't forced to pay high monthly payments in order for it to take longer to pay the card off. If it takes longer for a person to pay a credit card debt, the credit card companies will be making a lot of money. I can definitely say I have experienced this because I am always offered to get a credit card. There are many stores that carry their own credit cards, and offer them for their customers. Offers are tempting and they can add to a future of credit card debt.
Money in a traditional sense no longer exists. Money is becoming much of a concept than a physical material, and most ordinary bitter have not see the reality of the switch. People today are using credit and debit cards on a regular basis and in everyday situations such as meal purchased at fast food, highway tolls, clothing, groceries, gas stations, etc. all of these means of systems could be regarded as a cashless society or world. The question we might ask ourselves is what is a cashless society? What are the implications of living in a cashless world?
In conclusion a cashless society seems positive and quite close that we actually think, but the main issues of these opportunities will solely depend on whether the benefits would outweigh the disadvantages. We can already see that many people agree with the government on the cashless economy but on the other hand other people such as Christians will not probably accept this as a norm. It is vital to understand if society moves to a cash free economy, the benefits must distinctively overshadow in the end. It appears that much has been done in terms of the awareness of a cashless society as technology advances in progression with the use of electronic devices and system without the exchange of anything tangible. However