You’ve seen the reasons to get a credit card, but do you know everything that there is possibly to know about them? If not, then it is advisable to do so, so that you can know exactly what you’re getting yourself into before you get into it, if you want to get a credit card for your own use.
The evolution of the credit card dates all the way back to the 1920s, nearly 100 years ago, when charge cards were introduced by stores, hotel chains and service stations so that customers wouldn’t have to travel all the way back to their hometown to get cash. These cards laid the groundwork for the credit card, which came into fruition 30 years later when Diners Club released one made of cardboard that could be used in more than 20 restaurants in New York CIty. Nearly 20,000 people used this card, inspiring American Express and Visa to spawn and issue their first cards shortly after. Make sure to check out more on the history of credit cards here.
So, with such a longstanding history in the world of currency exchange, credit cards must be doing something right, right? Wrong: there are cons when it comes to using credit cards, especially when they’re used in an unwise manner. Some examples of this include when consumers begin to feel as if they have more money readily available to them than they actually have to spend; consumers roll over a balance for several months; and consumers acquire too much credit debt and ruin their credit score. Also, when a consumer defaults on credit card payments, they are charged with late fees and even interest, increasing the debt load two-fold. And, of course, there is always the possibility of credit card fraud, which could lead to ID theft and many more problems.
But there are also a plethora of pros which make it easy to see why the credit card has roots as far back as 100 years ago. The big one, of course, is the freedom of payment they induce for their consumers. With the pace of change in the U.S. payment market showing that over the past five years the credit card has proved itself to be the generally preferred method of payment, merchant services are ones that must be optimised if a business owner wishes to retain custom and give the consumer what they need. And with many establishments now offering mobile credit card processing facilities, the freedom of technology driven payment has only become, well freer. As well as the freedom, credit cards also offer great financial backup for in the event of an emergency, such as unexpected healthcare costs, job loss, or auto and home repair. This means credit card consumers can rest assured that they are always able to forgo financial fiascos.
The credit card, like any other type of payment, has both its downsides, and its good points. If used in a wise and sensible manner, they can be excellent payment solutions for those who which to consume them.