Credit Cards - Advantages and Disadvantages

Credit cards have become a vital part of our daily life. Over the years the number of credit card users around the world has been exploding. This article discusses some facts about credit cards and how to use it wisely to avoid getting trapped in debt.

With Increase in number of companies offering credit cards, the eligibility for obtaining a credit card is very simple. Almost anyone above age of 18 ,who Is employed for a salary or running their own business are eligible. Nowadays,Even Students of Universities are eligible for obtaining credit cards after fulfilling some minimum requirement.

The process of acquiring a credit card is very easier than the process of Opting Out of the Scheme. Those who market credit cards give false promises and take you to the moon , but the reality being the other way. Have you ever seen a Credit card marketer explain about the risk factors involved in using the credit card ?. Certainly he/she will not, as his/her only job is to complete the sale and earn their commission and they are in no way worried about the consumers.

Credit cards have their own advantages too. It all depends on how well you use it.
Judicious usage of credit cards can make our life very comfortable. One of the main advantages of having a credit card is you don't need to carry cash and you don't need to worry about loosing money when you travel.

Nowadays each and every bank issuing credit cards are offering reward points (which can be redeemed in selected Outlets) and some are also offering a percentage of the amont of money which you spend using the credit card.

The fact is "these banks are ready to forego a part of their profit percentage rather than loosing a customer".They are very sure that ,this decrease in profit margin can be made up very easily, as long as the customer is bound with their Organization.

The number of Outlets accepting credit cards has widely increased around the globe,
you can rarely find an outlet not accepting Credit cards.Some banks Offer free insurance coverage to their customers .When It comes to E-Commerce almost every online shopping site has a well built secured access system for accepting credit cards,so you don't need to worry about your privacy(misuse of creditcard)or theft of data.

We the consumer,must always remember there are two ways "good" and "bad" in everything that exists in this world. It all depends on how good are you in decision making and how you plan your way.As Mr.A.P.J.Abdul Kalam (Honourable President Of India) rightly said "The best way to solve problems is to anticipate them".

Consumer's must always be realistic in their expectations and should not be deceived by false promises offered by others and later repent for the misjudgement,which they made ,being a football of other's opinion.The Saying "Knowledge Is Power" would be very apt in this context as nothing can befall a person who has profound knowledge.

Article By

Praveen Sudarsan