The reason that most people are in debt is the overuse as well as irresponsible use of credit cards. Banks ought to do a background check and only issue credit cards to individuals who have the ability to pay back their debts. What is your opinion?
#reason #people #debt #overuse #credit #cards #banks #background #check #individuals #ability #debts
In
this
present age, credit
cards
play a major role; they are like a
pre-approved loan that helps customers in times of emergency or in-store purchases on Correct article usage
apply
credit
. Overusing or using credit
cards
carelessly is the main cause of debt for most people. In my opinion, banks should conduct a background check before issuing affinity cards
to individuals who can afford to repay their financial responsibilities. Let us discuss more about this
topic in the upcoming paragraphs.
Firstly
, one of the severe issues is potential overspending on credit
cards
. Most shopaholics or impatient buyers do not think twice about buying items that are worth more than their monthly income. However
, if the customers fail to pay the monthly due, they will end up paying a high rate of interest
. To cite an example, interest
rates can be as high as 3% per month, which aggregates to 36% per year. If there are any unpaid amounts, the interest
will accumulate and become a burden.
Secondly
, credit
card fraud is quite common these days. Although
banks have taken measures to improve their fraud prevention systems, hackers and fraudsters always find new ways to loot. For example
, Credit
card frauds like identity theft, credit
skimming, and lost or stolen cards
are so common in our country. Thus
, card companies have to be extra vigilant before issuing credit
cards
and make sure the customers have sufficient monthly income and a good credit
score.
To conclude
, credit
cards
are really helpful for one's financial health. In fact, credit
cards
are a helpful tool to reduce your expenses by taking advantage of reward points. Check the interest
rates and processing fees before applying for credit
cards
.Submitted by anusree.pillai.1992 on
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