Nowadays almost any citizen from 18 or 21 years old can get a credit card. Banking specialist, while carrying out the sales plan, push credit cards with the most “profitable” conditions upon the clients.
What is the main convenience of credit cards? Money is always ready at hand. This is really attractive, because many people at least once in their life had a situation when there is still a week to salary, but there is nothing to buy products for. The opportunity to repay the debt within up to two months without fees ( this proposal may differ from bank to bank), this advantage encourages to accept the offer.
Another attractive convenience is universality. When arriving in another country one no longer needs to look for an exchange office. Visa and MasterCard payment systems convert currency easily. ATMs and cash offices accept these cards without any problems in almost any country.
Competition compels banks to adjust the range of their products to customers’ needs and create new promotions. For example, refunding a certain percentage of the purchase price to the account (cashback) increases the level of loyalty of card users.
The undoubted advantage is that when you replenish your account, the card becomes active again. There is no need to go to the bank for another loan application.
Let’s sum up the advantages for credit card users:
-Good interest-free period;
-Service in any city in the world;
-Ease debt repay and re-use;
But credit cards also have negative sides. In fact, there are not so many of them and they are predictable. You will need to pay the fees for issuing the card and annual maintenance. In different banks this amount may vary, but the fact remains that the credit card has to be paid for.
Banks set a higher percentage for using credit card funds rather than for consumer crediting. If you commit a delay in payment, even on a small amount, the debt will grow rapidly.
A person who wants to withdraw money from a credit card at ATM will encounter with an unpleasant situation, because of a commission charged for this operation. So it would be better to use the card to pay for purchased goods.
It is important to abstain using credit cards too frequently and competently calculate your financial capabilities. Perhaps, it is worth to renounce the idea to purchase new household appliances and keep the life savings until better times. The choice is yours.