Jess Manuel Esquivel Ramrez A01370733

September 11, 2014

Essay

Credit Advantages, and Disadvantages
Now at days, the bank give the opportunity to lend you money in different ways one
of this is the credit card. This card lend to you some money when you dont has the money
in that moment, but this card gave a some clauses that you need to cover, and pay when you
buy something, there is a lot advantages , and disadvantages.
Advantages of Credit
Convenience. Using credit cards when you travel or shop is more convenient than
carrying cash.
Use other peoples money. During the time between when you buy something with
credit and when you pay the bill
Meet emergencies. Unexpected costs such as car repairs or health needs can be met
quickly with credit.
Disadvantages of Credit Use
Credit almost always costs money. You have to decide if the item is worth the
extra expense of interest paid, the rate of interest and possible fees.
Overuse of credit leads to a poor credit record. A poor credit record means you
will find it more difficult and more expensive to get future credit.
Extra fees add to the total cost. Credit card companies are collecting higher late
and over-the-limit fees which add to the total cost of credit. Pay attention to due dates and
total amount charged to avoid these added costs.
In conclusion the credit card can bring advantages, and disadvantages, but you need
to be very carefully with the things you buy because you can get a great debt.

Reference
Preston, S, Prochaska, K. (2007). Credit Advantages, and Disadvantages. Retrieved fron
http://www.ianrpubs.unl.edu/pages/publicationD.jsp?publicationId=913