Hey there! So for my ENG 150 class at BYU-Idaho, I had to write an essay, and I chose to explore the topic of credit cards. I found it to be incredibly fascinating and decided to delve deeper into the subject. Here is a little summary of my essay that I would like to share with you:

Credit cards have been one of the most widely used financial tools around the world for decades. Although they are convenient and easy to carry, there are common fears and concerns about using them as a daily payment method. As a credit card holder, it is important to weigh the advantages and disadvantages before using them. One advantage is that credit cards allow someone to buy something without having money for it, which is possible because credit cards work under the revolving credit system. This means that someone can use part of their credit and then repay it to replenish the amount available to the account holder.

Credit cards were introduced in 1950 by Frank McNamara as part of the Diners Club foundation history. Since then, credit cards have evolved, and there were about 25.2 million credit cards around the world as of 2021. Credit cards are sponsored by big brands such as Visa, Mastercard, American Express, and others. Despite their widespread use, there are common thoughts and fears about using them, especially during the COVID-19 pandemic.

Having fears about credit cards is normal. But it is essential to understand the key features of this payment method to overcome those fears. Before applying for a credit card, there are certain things such as the credit card billing cycle, due date, and minimum payment that one must be aware of. Understanding these features can help someone use a credit card judiciously and reap the maximum benefits. There are other concepts to consider, such as yearly interest rates, annual fees, purchase plans, and more, which everyone needs to consult with their bank issuer.

It is also essential to meet the requirements to have the possibility of receiving a credit card issued by a bank. These requirements are made to protect someone from not being able to pay for their monthly purchases. In most cases, the credit line limit is higher than the holder’s monthly income, making credit cards one of the riskiest financial products. After fulfilling the requirements, someone is open to having either success or bad experiences when this product is not used with responsibility. It is important to use credit cards responsibly and not exceed the credit limit, as it can lead to financial instability.

In conclusion, credit cards have both advantages and disadvantages. They are convenient and widely used, but they can also be risky and lead to financial instability. To use them responsibly, it is important to understand their key features, meet the requirements to receive them, and use them with responsibility. As CreditKarma.com strongly recommends, using a credit card can make life easier, but it also puts a large responsibility on the spender.

References used in my essay

Pros and cons of using credit cards today. (2020). UWIRE Text, 1. https://link.gale.com/apps/doc/A637832031/AONE?u=byuidaho&sid=bookmark-AONE&xid=63ce3ccf (Scholarly Source)

Blau, J. M., & Paprocki, R. J. (2012). Credit or debit? Each card type has pros and cons: credit cards offer rewards, more protection in case of theft. Urology Times, 40(8), 52. https://byui.idm.oclc.org/login?url=https://search.ebscohost.com/login.aspx?direct=true&AuthType=ip&db=edsghw&AN=edsgcl.300886242&site=eds-live&scope=site (Scholarly Source)

Schnaubelt, C. (2019). The Pros And Cons Of Credit Cards. Forbes. https://www.forbes.com/sites/catherineschnaubelt/2019/02/15/the-pros-and-cons-of-credit-cards/?sh=29ff094b1e8b

Cash, K. (2021). Pros and cons of using credit cards. Credit Karma. https://www.creditkarma.com/credit-cards/i/pros-cons-credit-cards

360degrees of Financial Literacy. (n.d.). Credit Cards: The Pros and Cons. Retrieved June 23, 2022, from https://www.360financialliteracy.org/Topics/Credit-and-Debt/Credit-Cards-and-Reports/Credit-Cards-The-Pros-and-Cons

Steele, J. (2022). The history of credit cards (timeline & major events). CreditCards.Com. https://www.creditcards.com/statistics/history-of-credit-cards/

Tuovila, A. (2021). Revolving Credit. Investopedia. https://www.investopedia.com/terms/r/revolvingcredit.asp