The term “plastic money” generally refers to an electronic card which is worldwide known as credit card. This is a magical card which allows its user to pay nothing at the time of purchase; instead you can pay later on. Credit cards are widely used as a convenient source of credit in hotels, restaurants, gas stations, online shopping, grocery stores, medical care, and the list is getting long day by day. When scrutinized, credit card also comes up with a list of merits and demerits like other things. Its fact that all these merits and demerits are indirectly controlled by one person that is the user of the card and result of misuse can be drastic.
Pros:
1. It is not possible to carry a large sum of money all the time, credit card eliminates this difficulty.
2. While away from home you always have an option of either getting cash advances or you can bye a travelers check with the help of a credit card.
3. If you have experienced some problem with an item or services after making payment for it using credit card, you can withhold the payment by calling the card company and then settle the dispute with the concerned authority.
4. Think a situation where you have a good deal about a product or something sort of but you haven’t the cash or balance in your checking account to pay for it, in this cases credit card can help as an short term loan.
Cons:
1. Don’t ever forget to pay your credit card due, because it becomes a monstrous loan when you did not pay the due. So always pay the credit card dues on time.
2. People often use more multiple credit cards. As each card has its own credit limit when limits for all credit cards are added up it becomes a huge amount. This can be bad as people tend to habits of using credit cards to extend their income.
3. Credit cards having low rate of interest initially generally vanishes after some period time. These rates are known as teaser rates. One must read all the rules and guidelines documents at the time of taking the card.
