Credit Cards - Phase 2 - ip Essay Example | Topics and Well Written Essays - 500 words

Credit Cards - Phase 2 - ip - Essay Example While we know that you have now become a responsible adult, I would nevertheless, like to tell you something about the most crucial factor of one’s life. The management of money, especially the use of credit card is an important aspect of life and becomes all the more critical for the freshman because they not only need to know the advantages of the credit cards but also the pitfalls of its mismanagement. This is the one type of paper currency that gives you instant access to goods and services without actually having it in hard cash so it is easy to forget the value of money. Judicious use of money and credit cards shows responsible behavior and inculcates habits that would never let you fail in life. As you know, the credit cards have great advantages. One of the most important is that it helps you to meet emergency situations with ease and confidence. You do not have to carry large amount of cash while on traveling or shopping. They make it easy to buy goods and protect your purchases in case of theft or loss thus considerably increasing your purchasing power. Sometimes, credit card purchases may also give additional benefits of extra discounts. But the most important advantage of credit card is that they help you to establish credibility in the market which you would be a huge help when you require money for important matters of your life. Good credit card credibility is a great asset for securing loans from financial institutes, facilitates rental application and sometimes even jobs. You can acquire good credit history by making prompt payments of all your bills without resorting to part or installment based scheme of payment schedules. The biggest pitfall of credit cards is that it gives you indiscriminate power of spending and encourages people to spend money that one does not possess! This often leads to debts that keep accruing because as a