It was the fact that thirty years ago, if you had a credit card and many people didn’t you probably had only one, but now days the use of Plastic money has become so common that according to the stats today, the typical American adult has four or five cards and uses them in one out of every four transactions.
So with this rapid increase in the usage of plastic money as compare to paper money, there involves various pros and cons with them. Let us study some of them.
Advantages of Credit cards or Plastic money:
- Easy to handle- it prevents to carry out heavy wallets, hence, reducing the chances of theft.
- Easy access to money- in the situation of instantaneous want for money, one can withdraw / debit the demanded cash amount from the account and thus prevents any risk of getting marooned in travelling.
- Easy availability- Now a day’s every bank facilitates with Credit cards as long as the account become active. The cash ATM machines are also open 24/ 7, therefore whenever in need one does not have to wait for the banks to open, but can take out the money using the card.
- MIles of Cards- Most credit cards companies offer miles on every purchase. This indicates that by using the card for purchasing, there are points added which get aggregated in the user’s account. Lastly, when a good amount of these points get collected, the consumer can use them for purchasing any product for free, hence making a double use of money is another advantage of plastic money.
Disadvantages of Credit cards or Plastic money:
- Just a plastic- Besides all the advantages, Credit card is just a plastic which can get either lost or stolen. This may results in crimes in which extensive purchases can be made under the name of the account holder. These cases might get resolved in the benefit of the applicant, but there is still an identity theft which is a very serious issue.
- Shops using other vendors- There are numerous shops which accept credit cards of a specific company only. In this situation the cash is the only way of payment for those who use a credit card of another company.
- Less Global availability- there are many cases where various companies do not permit their cards to be used in areas where they have a regional dispute with.
- Worn out Magnetic strip- The magnetic strip of a credit card can get worn out due to massive use. If such a condition happens while travelling, and this is the only way of cash that the consumer has, then he or she has to wait till the time they receive a new card, which can take a minimum of 48 hrs.
Therefore, it can be resulted that although Credit cards are a good and faster way to access money, but total dependence on them is not appropriate. At the same time, the user needs to be extra cautious while using them. It is a fact that technology has surely improved our living standards, but we should prevent its misuse.