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The Bad and the Ugly
One of the leading credit card companies, Sears has had a massive list of defectors based on its unexplained penalty rates on late payments. Like many credit card companies, it has become a nasty trend to increase interest rates due to late payments, without any particular due process. Granted, these credit cards are useful, and highly necessary, but taking advantage of its clients is in really bad taste. A sears employee confessed on how an applicant applies for one card then ends up getting three, all in the name of boosting sales. Its a nasty trend which essentially moves to caution on the risks of taking credit cards without proper consultation.

A sears card holder does have a bunch of perks to look forward to though, occasional promotions, zero interest rates, plus other perks that come with the card. These are the kind of things that a sears card holder can take advantage and pounce on. It’s not all doom for card holders, seeing as it does have its fair share of purchasing advantages. The problem only comes in when you’re let on a payment, in which case it’ll cost you, big time!

So what are we looking at here? The idea is to know the specifics before you sign anything. Don’t pull up monthly payment plan that you can’t keep up with, and before you get a card, make sure you specify to the sears employee that you want one and not three. Be extra attentive to the fine print, that’s how you end up digging your own grave. The plan is to be constantly aware of your financial health, and your ability to keep up with your payments. Also keep in touch with any of the sears employees to know if and when they change the due date for your payments. A late payment, even if you weren’t informed of the change in due date, may cost you from around $25 to as much as $39.

Not just a hassle free mode to carry large amount of money but an easy way to make payments, take credit from banks and other organizations, credit card is a great financial tool.

Though the card comes with many advantages yet its benefits and defects are more user based. In other words, the positive and negative effects of a credit card vary with credit card holder. If an individual uses his card judiciously, the advantages are incredible and if not, he can very well land in trouble.

Since credit card provides convenience to spend anytime and anywhere, people usually end up spending excess of money. The option of keeping the minimum amount to keep your credit going stretches your budget even further. For every balance that remains unpaid each month adds to your interest and as a result after few months you find yourself burdened with credit card debt. For instance if you buy a sofa-set for $1000 and make only the minimum monthly payment of $50, you still have to pay $950. This amount will then be clubbed with interest too. If your credit card interest is 15%, the next month you will have to pay not just $950 but an additional amount of $142 as interest.

Many people consider that credit card is a symbol of wealth and it can be a wonderful financial tool that offers great benefits for those who utilize it to their advantage. If you have strong self discipline to clear off your outstanding every month, holding a card makes a great financial sense to you. However, temptations to overspend and live beyond one’s earning ability are the main risks that cause the card holders to be burdened by deep debt.

Purchasing online and swiping the credit card during shopping are really easy tasks and you are definitely enjoying the moment. However, if you don’t have the ability to pay for the amount you swipe based on your current income, within a short period, you will find yourself drowning in debt. Not being able to pay back on time can lead to the damage of one’s creditworthiness and it is hard for obtaining other loans in the future. Although you won’t be sued for bankruptcy by the banks as credit card debt is an unsecured debt, it is hard for you to obtain any financial aid for other important purpose and the possibility to be blacklisted by the banks and financial institution is high.

Besides, you may also face the risk of identity theft. This happens when someone may obtain your credit card details and use them to make purchases online on your behalf. The purchases may be huge amount and you will be facing difficulty to prove that you never make the purchase. Normally in this type of situation, you will not be able to use your credit until the detailed investigations are done by the bank or credit card companies. Although the banks will not hold you responsible for such transactions, it is troublesome and time consuming for you to settle the case.