Advantages and Disadvantages of Credit Cards

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Jingzhen Huang

        Personal finance

        12/13/2012

Advantages and Disadvantages of Credit Cards

Have you sees the movie Mixed Out? This movie is so realistic and close to our daily life. It describes how people abuse their credit card and fall into a debt crisis without being able to pay off. In our daily life, credit cards have become a popular payment method in many businesses, such as when we to shop in different stores and buy food in restaurants. Indeed, the credit card has been used by most of people in the world. This piece of plastic is easy to carry anywhere and useful for buying anything without paying cash. Thus, credit cards have become a most convenient form of payment for almost everything. However, using the credit card not only has advantage, but also disadvantages that will be also discussed in this essay. How does credit card affect our daily life? We have to learn how to use the credit card wisely in order to prevent debt crisis.

Many people cannot see themselves managing their life without a credit card because of its many advantages. First of all, credit card is convenient and provides security as we walk outside. For example, if someone wants to buy one million dollars of house, he or she can pay down-payment with credit card instead of carrying a huge amount of money for it and then being robbed on the way to the real state office. On the other hand, if someone stole your credit card, you can just call the credit card company to cancel it out. Then, in a few minutes, the bank will spread the canceling information to every store, so no one will be able to use your card in the case they find it. In result, you won’t worry because your money is safe. Today, everyone likes to shop online instead of going to overcrowded stores and wait on line to check out. It is impossible to make a purchase over the phone or the Internet without a credit card. Consequently, more and more people carry a credit card with them.

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Moreover, credit card might also serve as an emergency fund to someone. For instance, People can pay bills at the beginning of the month using their credit card and the money will be then charged at the end of the month. This means that they have nearly a month to pay their bill. Similarly, if your child needs to go to the hospital immediately, you don’t have any cash with you; you can pay the medical bill with your credit card and then be charged after a month. Also you can pay off your credit card bill after you get ...

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