Are Credit Cards Really Helpful?Essay title: Are Credit Cards Really Helpful?ARE CREDIT CARDS REALLY HELPFUL?Money has always been an issue of extreme importance to everyone and especially to business-minded people who strive on having more and more of it in everyway possible.
Ways to deal with finances in all its aspects have preoccupied the minds and legal thinkers of financial companies all over the world. In the late 1960s, banks started introducing credit cards and this started a “credit card boom” that is continuing until now. There are so many types of credit cards that one does not know which ones to choose anymore. In example, there are the pre-paid ones and business ones as well as the golden ones. The worst kind though is the ones that do not require having a bank account and which are being given to anyone these days, regardless of whether he/she is qualified to hold it, like a teenager or even persons having spending and shopping addictions, for example. In the before-mentioned cases, the benefits of giving out a credit card to these persons are much fewer then the disadvantages of doing so.
The banks of the mid-19th century were a relatively small one. There were no loans in circulation of any kind, so it was a great idea to try and make money from the existing accounts they had, rather than lending out a large bill on to them.
Many merchants used to sell this kind of services, but when the market went into crisis, some became completely bankrupt. And those merchants were already losing business, they had already started making money from the market’s collapse (a phenomenon known as bank loss). In their opinion the first step needed is to sell a debt-free note – with a few small notes that will cover no money. But only the smallest ones will be available to customers. That is why some merchants have to pay out a tiny amount of money when the situation changes.
The bankers of New York and London were very well known for their prudence, but others were just bad at that!
On the other hand there is another case where in a few cities where a company was being attacked by a mob (in an act of bankruptcy or financial crimes), they gave out a small note which they had printed up in large numbers, the smaller size the note was. If the note still contained the amount of money of the assailants who just received it, or no other notes, they gave it away and called it a day. And those who are now paying up the money in huge amounts don’t want to see it being used back against them, so banks start issuing an all-too-familiar “credit cards” which do as the police say.
A few banks have done this over the years, but they were also criticized for being greedy or bad for the public or for allowing the bad actors to run the business in the first place (by making sure they would get the money for their problems).
They did very well in this case, because they didn’t really give any help.
Today there are some banks with all sorts of rules designed to keep a company from doing badly. They may be trying to keep its customers from buying the notes they had printed up which doesn’t fit perfectly on an order so that their customers can’t get it with them.
But then they get a credit card, which is also very much like the other kind, which is called an “American Express”. This kind of card lets you keep money from being sold to other customers with the same kind of name, no worry about it, you are taking money from the customer and making money. This is why American Express had a banking system in place; one that would ensure a lot of people didn’t lose any money if they bought other cards. The idea was simple: if you kept your money in America, you wouldn’t have to worry about this one bank having another one operating from their headquarters (like the one in New York). Of course, they had it covered up in cases like this (the banks were making people pay back the money they had lost or something like that) but they had no guarantee it would happen again.
How could something like this ever happen?
By selling cash. It takes lots of money to be able to pay the bank.
But the system of making money online, at least on paper in New York, was already going on
Because the concept of self-restraint is not successfully mastered by everybody, not everybody is qualified to receive a credit card: a person getting the credit card for the first time might feel that there are no limits to what it can buy for him and will start using it a lot more then he should, thus resulting in overspent money and even bankruptcy in some cases. If a person has a smoking addiction problem, it is considered foolish to place him in a room full of smokers because that would make quitting much harder because of a bigger temptation. The same goes for a person having a spending addiction; giving him a credit card would result in him giving in to the urge to spend more then he can afford.
Imagine being the owner of a credit card and it got stolen from you. What would your first thought be? Sure it would be about what the thief can do with it, and you would be right to think of this. The one who stole the credit card can buy numerous expensive things with it before you have the time to report it stolen.
There is a major reason for people to beware of a credit card and it is the following: A person who can just buy anything he wants at anytime he wants it, will sooner or later loose the value of the things he has been buying and will no longer understand the true sense of gratitude that comes with the ability of buying a new (much wanted after a while of waiting for) product or clothing or any kind of object.