The rapid evolution of technology has transformed the way people make payments leading to increased usage of credit cards. Just like a coin has two sides, credit cards have their pros and cons. In my opinion, the advantages of credit cards outweigh the disadvantages so I am writing this essay to give my rationale.
To commence with, credit cards play a fruitful role in terms of daily purchases whether online or in-store. For instance, in retail sector, it has been proven that every third customer pays using their credit card. The primary reason behind its increased usage can be attributed to not only its instant transaction but also to fostering credit scores. Additionally, it is worth noting that credit cards offer numerous other programs such as cash back, travel insurance and purchase protection. Another factor to consider is that having a credit card is like possessing an emergency backup loan in case you need money.
On the other hand, if not used wisely, it may result in severe financial challenges to the cardholder. To elaborate, youngsters have changed their way of spending money. They tend to get attracted to products they cannot afford. With a mere tap, they can buy anything they like. The over-usage of cards and neglecting minimum monthly payments lead to accumulated debt which can cause an increase in annual fees, interest rates and late fees. This deteriorates the credit history for future expenses.
To sum up, I acknowledge that in spite of having a few disadvantages, credit cards can prove to be a beneficial asset when used wisely by following all the terms and conditions.