Credit facilities advantages and disadvantages

PICKFORD

Verified member
Credit card a plastic card used in purchasing goods and services from specified sellers up to a specified amount, and payment for such good are later paid for. one of the Major feature of credit card has that it eliminate the danger involved in carrying large sum of money in cash from one place to anotherwith credit card debt of robbery whether personal or bank will be drastically reduced their use of credit card in modern days now willing to cashless economy and is one of the modern trends in retail business. Credit card has been part of the Nigerian economy for a long time I'm from the year 2015 it became rampant than ever. credit card has benefits as well dis-benefits some benefits of using credit card including:
1. it eases handling: that is to say credit card or the customer to purchase goods on credit which they could not afford to buy with cash.
2. like previously said it would use and robbery the rate of armed robbery and crime such as Robin individuals or bank recently reduced as customers buy goods with the use of credit cards.
now the disadvantages of using credit card include:
1. no room for bargaining since the price of goods affect customers may not be able to bargain for such goods.
2. increase in price of goods goods and services sold with credit card are usually associated with high price which is disturbing to the consumer.
 
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Deleted member 28127

Guest
I think such a solution becomes deprecated day after day as the new attendance of payment is using a QR code to pay or ATM cashout or at retailers no longer need to credit card.
 

Kingsley

Valued Contributor
There are certainly enormous advantages and disadvantages of access I credit facilities, while I will start with the advantages, first and foremost we are living in a society that is insensitive to the challenges people are facing immediately one gets to the top you don't get to remember the people underneath anyone this is one reason why many are passing through a lot of hard times in my country. Works off people are not willing to access themselves. Hence people are left with little or no choice than to look for anything to do just to survive. At this to no one cares anymore because there are no jobs, so they resolve to start a business this whynpeople access laons. The advantage is it helps to help the business minded fellows to provide channels to generate st a start up capitals,

It also helps existing business owner to generate more capital to run their business and also bring about expansion in their business, it also helps them to sit up since they know the took a loan they they be more serious with work.their work. Then the draw back also occurs when the business owmer defaults he or she will be embarrassed.
 

Caramelle

Active member
Credit cards can be a useful tool for people who know how to control them. It can help extend one's capital when the business has a short-term need for funds. As long as the total amount due is paid in full every billing cycle, a credit card holder doesn't even have to pay interest on its use. Thus, if you can come up with a business idea that has a short operating cycle, credit cards can be considered as a viable option for obtaining the needed capital. Credit cards offer a convenient way to obtain credit in times of emergencies when banks are closed or when there are limits to the amount of money that you can withdraw from a savings account on any given day. Some credit cards offer cash-back, airline fare credits, and other rewards for using them. Imagine being able to travel by paying for it through credit card points or enjoying rebates on your regular purchases.

Credit cards can be your worst enemy if you use them indiscriminately and abuse their powers. Having a credit card readily available for use can be an irresistible temptation that can weaken your resolve and discipline to work hard for the things you want in life and delay gratification for things you can't afford. Charging expenses and purchases far beyond the amount you can afford to pay back will eventually ruin your financial life. When that happens, you will be paying more for the privilege of using the card through interest than for the value of goods and services you have purchased.

 

Good-Guy

VIP Contributor
There are various kinds of disadvantages of using credit cards. I personally believe that the disadvantages of using such credit cards are far much more than the advantages. This is my opinion, but let me explain. First of all, you stated that you may use credit card and this will prevent robbers from looting you. However, even debit cards could also be used to avoid cash money and purchase items without carrying real cash. So I do not think that credit cards are the only kind of cards that offer this "benefit". Secondly, the problem with using credit cards is that many people recklessly use it and they usually find themselves in big debt.

Apart from this, they also need to pay interest when they use credit cards and the interest rates of credits are increasing each year. Whenever you have a bad debt on your credit, you overburden yourself with heavy interest rates and small amounts of interest accumulated on your credit could gradually grow and you may end up being in bigger debt than you could think. Moreover, the notion that credit cards are entirely safe is also incorrect. You could get your credit card stolen and misused by thieves.
 
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