With the passage of time, everything is changing. More and more people are coming towards credit card option. According to one private research conducted in UK, The majority of youth has more than two different credit cards but only half of them have job.
Is it really changing lives?
The biggest beneficiary is bank. The credit card is major source of profit in many international banks. It is the easiest way of earning and getting rewards without and hustles. People can buy something without paying anything.
The most amazing thing about credit card is that you can increase your money.
Cultural Shift
The credit card spread everywhere any anyone could tap into a network of trust on bank. If your bank is happy with your trust then nobody else need to worry about this. You can roll the debt over again until you were ready to pay your own convenience. It is not difficult you need to pay interest 20% or 30%.
Moreover, credit cards have made many things easy. In first time people used to visit their shop to pay bills or their household. But now everything can be done online for example online transaction, online payment of bills and you can buy stuff online, whatever you wish.
If you don’t have any card and still confused in choosing the right one, you must first check credit card reviews for the company you are willing to apply for, It may be American Express Amex Card or Citi Card.
People get comfortable with credit card that they spend their whole living months behind their actual income. It give the advantage, so many home buyers during the 2000’s took out reasonable rate, and borrowed for homes that are expensive then they can afford.
Usually credit cards rate are low. You only spend 10% of your balances which clearly show that your monthly payments are barely reducing your debt.
Large Purchases Possible
It is not always possible to have the exact money you need at the same time of your demand. Just in case, if you purchased your first home you might not have additional cash to maintain your house like buying furniture and appliances? But by using your credit card all this is possible.
Emergency source of funds
Not everyone has $1000 cash in hand to buy emergency airline tickets, make a car repairs etc. Pay only 15% interest is much better than taking out loan in an emergency, because it has interest 1000% and costs very high. You can use your savings as well but if you don’t have then credit card is best solution to your problem.
Sense of Power
Credit card provides sense of power that leads to enhanced self-esteem, mostly in younger people. According to Bankrate, an Ohio State University study indicated that young adults of age 17 to 18 felt that having Credit card gave them greater control on their lives.
When people make charges to their credit cards, they may be using them as a means to finance purchases that they otherwise could not afford. According to the just recent survey of Gallup about 76% of adults in the United States report having at least one credit card. If we talk about Americans then about 48% carry credit card.
Credit card has both positive and effects on the economy of United States. Individual cardholders must always make the best choices for themselves.
