The consequents of using credit cards





by
Hassan Muslli










EAP2, Writer’s Workshop
Heidi Wright
April 27, 20


Abstract

The topic of this article is credit cards. It argues that there are a lot of disadvantages of using credit cards. There are four reasons of this argument. The first is that credit card is easy to lost so it can be used by anyone. The second is the interests of credit cards are high. The third reason is psychological. Finally, credit cards can cause health problems for people who used it.

The definition of credit card is “ A plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or services on credit. Also called charge card” (Credit card, para. 1). In “How credit cards work” the author gives us more specific definition and he stats “A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size, that contains identification information such as a signature or picture, and authorizes the person named on it to charge purchases or service to his account, charges for which he will be billed periodically” (2007, p. 1, para. 3). This seem like credit cards is secure and nobody can steal it. However, thieves have many ways they can use other credit cards. For example, they can use other credit cards to buy stuff from the Internet where no need for signature or picture to identify the person. Thus, credit card is just a piece of plastic people can buy by it everything they need. All what they need to do is choose the product, take it to the cashier, swipe the credit card and pay later. This gives the impression that everything is easy to get. However, people start using credit cards since 1976, and everybody like this new idea. (2007) on the contrary the results appear to consumers after years from using it, and everyone knew the secret of it, they need to pay more than what they should. People were looking for money and baying stuff even if they do not have money. Some people need money these days so they can buy anything they want by their credit cards and sell it in the same day and get cash money. So they can pay to the card later. Nevertheless, what if they could not return this money back in the due date? The result is that the bank will charge them late fees. Here is the problem with late fees because it is high and unreasonable. When people applied to this credit, they care more how much money they can get from this credit no matter how much is the late fee, because they are “sure” they can pay on time.

First, credit cards easy to lost like any card. In this case people do not use just only a credit. Also, lose money. For example, if someone found a credit card in the street, he do not need to ID to prove that this credit belong to him, he can buy thing by Internet, so no signature and questions for ID. Moreover, when somebody lose his credit, he gives plenty time for thieves to use the credit, and that’s because he will lose a lot of time for calling the bank and waiting to prove that he is the person who will cancel the credit.

Second, credit cards have high interest. It means the rate of these credit increase all the time. People want easy money. They think by credit cards they can buy anything they want. In fact, they do not realize this high interest can make their income down and one day they will found their selves poor. In addition, they will need to get loans to cover the damages, which comes from credit cards. For example, if the limit of the credit card was 500$ and the person used it and can not pay the money in the day of payment, the bank will charge him high interest and in this case he need to take loan to pay for the credit. Certainly, the bank can gives anyone want credit card, and sometimes they send to people a lot and it is free. For example, the bank looks to the history of somebody and make him as a favorite costumer. Then, they send him a lot of credit cards, and he thinks he can handle it, but one day he figure that his finance state became downward.

Finally, credit cards can cause for people stress and this bad for their health. According to Reuter (2006) he asserts “ the marketing techniques and incentive programs used by credit card companies induce consumers to overspend and amass debt. A 2002 medical paper described in the article links credit card debt to various health and social problems, including insomnia, anxiety, martial breakdowns and depression”. The depression is the first problem people will get it from these credit cards. People owe money to banks because of credit card, wake up every morning, with a reminder in their head like a noise alarm, credit card must pay, but they can not handle it, and everyday they are late banks charge them more. In addition, people can have comfortable life with money, and credit cards bring problems. For example, if somebody wants to move from his house to take another comfortable house, the owner of new house will ask him about his social security, and the owner will see his history credit and refuse him. So the person will be so disappointed until he gets sick.

The opponent says that credit card is good because it is your money and “use it when you need it”. However, this idiom we hear it every day because we need money everyday. In fact, credit cards are just successful from the commercials and the advertisements. Some times they offer for company credit cards for all the employees in good rates, but when the employees use this money and they can not pay, the winner in this case is the bank because the employees and the company applied for the conditions the bank ask about it.

In conclusion, people should take care about their money from thieves and the best way now to steal people is steal their credit cards. If the government want to keep this credit cards, they should low the rates because it is not equal with the citizens` income. This credit cards cause a lot of stress for people, they should stop using it if they can not pay the whole amount of this credit.





Reference

Associated press. (2007, March 8). Banks` complex credit-card rules

scrutinized. Retrieved April 11, 2007, from http://www.msnbc.com

Katayama, F. (2003, February 18). Hackers accesses 5.6 million credit cards.

Retrieved April 23, 2007, from http://www.cnn.com

Ward, M. (2007, March 30). Net gains for credit card thieves. Retrieved April 23,

2007, from http://www.bbc.co.uk/2/hi/technology/6511927.stm

Reutter, M. (2006, October 31). Is credit card bad for your health?. Retrieved

April 15, 2007, from http://www.medicalnewsstoday.com

How credit cards work. (n.d). Retrieved April 23, 2007, from

http://www.howstuffworks.com