Cash Vs Credit Cards

Decades ago, when you flash a credit card in public, people would automatically assume that you’re probably some rich dude with all the cash in the world.

Thanks to the wonderful world of media, we now begin to understand what a credit card is exactly.

When you swipe a card for a purchase, the bank actually pays the bill in advance. Meaning to say, with every swipe of a credit card, you are actually putting yourself in debt. The more you swipe, the more you owe the bank. If this is the case, why do people still carry cards around instead of cash?

The answer to the above question is simple, convenience. With cards that offer attractive credit limit at your disposal, you need not carry that much cash with you wherever you go. When making a purchase of expensive items, imagine what it’d be like without a credit card.

You’ll probably have to stuff all the cash in your pocket since your wallet isn’t designed to fit in cash in stacks, unless of course you do carry a purse the size of a small handbag. Not to mention that you can opt to settle these large payments in monthly installments.

With that much power in each card, wouldn’t it be scary to lose them? Thankfully, lost cards can be terminated upon filing a “lost card” report. After the report has been made, the credit card is merely another piece of plastic with little use. You could actually cut it up and use it as a guitar pick though.