Sunday, January 25, 2009

Credit Card: To have or Not to have

Credit cards have somewhat made it to the hearts of many a people now. In countries like the United States of America and Canada, life goes on when you have a credit card. Why is that so? In the midst of a complicated life wherein money is a huge factor in order to survive, there has been a need for people to have money in their pockets. As a matter of fact, people are working very hard in order to earn huge amount of money to provide and support their needs to live on a daily basis. However, it must be understood that in first world countries such as the aforementioned, things are not being purchased using cash. They prefer to use the credit card instead.

Can you imagine a scenario wherein you need to buy a house and lot in addition to the cars and other amenities and you will only use a card? What seemed to be a small piece of card can actually change a life of one person from good to better. In a soceity wherein your cash is good but we need credit card is more popular than the other way around, it has been important for people to build and establish good credit standing. Cash is already a KING. But why do we need to use credit cards? There are many factors that need to be considered.

People can’t live in a cash-only world

Even if cash is king and it is good, one has to understand still that there will be instances where people will fall short of cash. This only means that there will be situations when people need to spend more than what the their cash-on-hand. In purchasing or buying things such as computers and cars, reality reveals that not all people have the exact cash at hand. Should it prevent people from buying things they want? Of course not!

If only cash is sufficient and if only people will have enough of it, there is no longer a need for a credit card. But for now that we do not have much and enough at hand, credit card will suffice.