Having a credit card is not always a bad thing, as long as you are a wise spender and make use of good debt management. Credit cards can make life easier and be a great tool, but if they are not used wisely they can become a huge financial burden. For the people using common sense and who make wise decisions, these plastic cards can actually come with a few benefits.
One benefit is that it is just a matter of convenience. In this fast-paced society, nearly everyone is in a hurry and do not like to waste time on doing a task that could be finished in less than a minute. For example, paying for your purchases with a card instead of cash. People standing in a long checkout line tend to get a bit annoyed when the person in front of them is taking too long. Having to carry around a stack of cash and count it every time you want to buy something can become a bit frustrating.
Also, carrying around a whole bunch of cash on you is never safe. Cash is not only easily visible, but if stolen, it can be easily used without detection. Opposite of this, purchases on your card are easily traceable. If your card ever gets stolen, it shows up on your account the transactions that have been made – when it happened, what was purchased, etc.
Another benefit of using a credit card is that it gives consumers the establishment of good credit. When you want to make a big purchase, like a new house or car, the lenders will most likely look at your credit score. By making smart financial decisions and knowing how to use a credit card, you can build a good credit history which in the future will allow you to make such investments.
Tracking your expenses is another advantage of having a credit card. It can be hard to keep track of where your money is going, especially if you are using cash for a large number of purchases. Instead, if you put these charges on a credit card, you can get a clear monthly statement that shows exactly what was bought, how much was spent, etc. This could even help you develop a budget for your spending if you are not happy with it.
There are a variety of benefits of having a credit card, some of which are listed above. If you are a smart consumer and know how to handle money and financial issues, then you too can see these advantages.
Every summer, Archana works at Kumon, a math and reading workshop, tutoring children between the ages of three and 18 in these subjects. She used to be enrolled in this program herself, so this allows her to connect with the students and give them the one-on-one help that they need. Archana is also currently a member of NC State’s Psychology Club, Rotaract Club, and EKTAA (NC State’s premiere South Asian Student Organization).
Archana was born in India, and moved to North Carolina with her immediate family when she was 7 years old. She speaks mostly Tamil, the native language of South India, and English in her home. In addition, having taken Spanish classes since 6th grade, she can speak and understand it pretty well too. Archana enjoys spending time with her family and friends, watching movies, listening to music, and going to the gym. She also loves to travel, and hopes to travel the world one day and learn about all the different cultures!
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