Bad News Credit Cards
Some Americans have been under the impression that credit cards are a valuable financial tool because credit cards give them leverage with their credit scores and also can make it possible to purchase and do things they may not otherwise be able to do. Even though this may be true for some this is not always the case. Credit cards are harmful not only to the American people’s finances but also the economy. Credit cards are the number one reason for personal debt and bankruptcy in America today because of little or no understanding of interest rates and the false sense of security that owning multiple cards gives. Most Americans have the desire for a more convenient lifestyle and credit card companies make it so easy to obtain their cards that it has become a trend in America for most families to have at least five or more credit cards per household. The high importance society has placed on establishing credit has started to open Americans’ eyes on how credit card use has impacted their pockets financially as well as the pockets of the top three major credit bureaus.
It is no secret that without credit cards it is almost impossible for Americans to obtain certain items like reserving hotel rooms, renting a car and, purchasing airline tickets. Americans have been sucked into the policies of the credit card companies. The tops three credit bureaus, Transunion, Experian and Equifax all exist because of the requirements society places on developing credit. These bureaus have the power to determine how much credit a person has and if that person is entitled to receive any more credit. Credit bureaus determine whether a person gets a car, home, or business loan making it a necessity for the American consumer to attain credit stature by obtaining credit cards. In today’s society they are a must-have.
Studies show that the United States households have received approximately 5.3 billion new credit card offers in 2009....
References: Creditcards.com. (2010, July). Retrieved from http://creditcards.com
Prater, C. (2010, July). Fox Business. Retrieved from http://foxbusiness.com
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