The last decade has witnessed a sudden improvement in the technology that we come across in our daily lives. Computers sizes have reduced, televisions are now slimmer and mobile phones are smaller and much more sensitive to falls and scratches. A complete recap on all the improvements we've achieved and witnessed will produce an endless scroll.
The two boulders behind such improvements would be the need for comfort and money. Many of us would agree that money is the main source of civilisation. One of the more famous achievements that we've accomplished is the credit card. A credit card is a piece of plastic that is produced by a bank or a financial body similar to it.
This piece of plastic will contain a certain amount of credit that is allocated by the bank and the card holder is allowed to spend the money as long as she or he promises to pay the sum back to the bank. How this system works is when the customer buys a product or service, he or she will have to swipe the credit card and the bank that produced the card will transfer the necessary amount in the stores account.
Each card usually comes with a limit and the limit varies depending on the agreement with the user and the bank. At the end of the month, the card holder will bank in the all the money he or she has spent along with the interest charged by the bank. This interest is a fee created by the bank for the money that has been used.
The credit card system has its ups and downs and the positive side of using a credit card is the convenience. Customers no longer need to carry tons of cash around with them and risk losing the money due to robbery. Credit cards are also a form of emergency cash in case you're out of money and need some urgently.
The down side of using credit cards is each time you purchase cost higher due to the interest charged by the banks. With interest charged for everything you buy, you might find yourself in a huge debt before you realise it. Studies and surveys have proved that those with credit cards tend to spend more than those whom deal with cash transactions.
A gentle reminder, banks and other financial unions are usually very strict about who they allocate credit cards to. A credit card holder must have a permanent and stready income source along with a good credit history. A good credit history is when someone manages to make all payments according to the agreements.
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