Jaralbio, Estevin Ryan P.

June 22, 2021 (8:58 AM)

SBENTREP-2B Group 3

What are the advantages and disadvantages of using credit on purchases?

Credit cards or standard cards which extend a line of credit when making
purchases has already increased its number of users in our current time. Even though it
was trusted by many, users must still know its advantages and disadvantages in order
to be aware of its conditions.

Some advantages of using credit cards when purchasing are, it increases the
purchasing power of the user since cash is not the problem. By the use of credit card,
you can purchase anytime and anywhere as long as you know your limit. It can also use
to an emergency situation especially on everyday purchases such as basic goods and
needs. One more thing is, it increases your credit score the more you purchase. Your
credit score would lead to an exciting offers of lending companies if they notice your
capability to pay. Using credit card is a way also to invest on big purchases such as
appliances and travels. If the user pays its balance in full each month, the credit score
will go up and could be a way to qualify for a better loan offered by lenders and banks.
Accompanied by advantages are of course, the disadvantages. Using credit cards when
purchasing could lead to a bigger debt for users who don't know how to use the card
correctly. Common mistake of users of credit card is that, they are enjoying purchasing
without budgeting their fund for the month which could result for an unpaid balance. If
the user fail to pay, interest and charges will likely to be charge by the bank or lenders.
Fees for unpaid balances if continuously applies will be expensive for the user as the
time goes by. Being undisciplined in purchasing is a challenge for some users. Also,
credit cards encourages users to purchase an endless wants. This is very common
case which could lead to a deeper debt when not paid.

Credit card is considered a useful tool for every transaction we are doing every
day. Considering its condition before acquiring is a useful way to avoid consequences
and enjoy its real essence it brings to our lives.
Jimenez, Myka Ella June 22, 2021 (12:22 AM)
SBENTREP-2B Group 3

What are the advantages and disadvantages of using credit on purchases?

A credit card has ended up a vital portion of our lives, with its ease

of utilizing and helpful pay-back choices. The rebates, offers, and bargains that a credit
card offers are unmatched by any other monetary
 items and spell a bonanza for the astute client. In any case, credit cards can be
ended up with obligation traps in case not utilized accurately, or in case you spend more
than you'll reimburse when the charge comes around.

The greatest advantage of a credit card is, it is simple to get credit. Credit

cards work on a conceded installment premise, which implies you get to utilize your
card presently and pay for your buys afterward. Credit cards offer you the chance
to construct up a line of credit. It permits banks to see a dynamic credit history, based
on your card reimbursements and card utilization. Most credit cards come stuffed with
offers and motivating forces to utilize your card. These extend from cashback to
rewards point collection each time you swipe your card, which can afterward be
 recovered as discuss miles or utilized towards paying your exceptional 
card levy. A credit card records each buy made through the card, with a detailed list
sent together with your month-to-month credit card explanation. 
This may be utilized to decide and track your investing and buys.
which might be valuable when chalking out a budget or for charge purposes.

The greatest con of a credit card is the least due sum that's shown at the best of

a charging explanation. Several credit cardholders are betrayed
 Into considering the minimum amount is the overall due they are obliged to pay.
In reality, it is the slightest sum that the company anticipates you to pay
to proceed accepting credit offices. Credit cards show up to be basic 
and direct at the start, but have a number of covered-up charges that
 might rack up the costs by and large. Credit cards have a number of charges
 and expenses, such as late installment expenses, joining expenses,
 reestablishment expenses and preparing expenses. In spite of the fact
that not exceptionally common, there are chances you may well be a casualty of credit
card extortion. With propels in innovation, it is conceivable to clone a card and pick
up get to to secret data through which another person or substance canmake buys on
your card. Check your explanations carefullyfor buys that see suspicious
and educate the bank quickly on the off chance that you suspect card extortion.

In conclusion, all shapes of cash have their preferences and drawbacks. To

create a great choice, one ought, to begin with gettingit his/her  fundamental life needs.
For illustration, those who travel a part will discover it simpler to save and
spend cash employing a credit card. On the off chance that an individual chooses to use
a credit card, it is way better to explore for the most excellent offer,
which incorporates protections or other benefits. It is wise to keep in mind that credit
card companies utilize diverse sorts of traps, which is why everybody is to use
caution whereas employing a credit card. Each credit card proprietor ought to spare all
checks and archives to screen their credit card adjust. As a result, it is conceivable to
say that the choice to utilize cash or a credit card depends on the individual and his/her
needs.
Katipunan, Jamil B. June 22, 2021 (11:02 PM)

SBEnt-2B GROUP 3

What are the advantages and didsadvantages of using credit on purchase?

- Using credit on purchase brings great advantage to users as it brings you convenience
where you don’t have to worry about having not enough cash on hand when shopping.
You can also do purchases even if you don’t have your paychecks yet by using card. By
that, you can enjoy shopping even if your paychecks will arrive after a few days.
Another advantage of using card is that it provides useful records of all your purchases
made. With that, you’ll no longer think where did all your money go since you’re
provided with the track of orders you’ve made. On the other hand, since it can be used
freely, you’ll be always tempted to spend that can lead to overspending. Another
disadvantage of using card are the fees and interest charges you’ll be paying especially
when you don’t pay it off immediately.
Pauline Recaña Lacson June 22, 2021 (10:22 AM)

SBENTREP-2B Group 3

What are the advantages and disadvantages of using credit on purchases?

Advantages: Convenient, cashless transaction, more time to pay (for example you need
or want to buy now but you don't have money yet because in the end you still have a
salary, but if you have a credit card, you can use it to purchase, then later you will pay
the bill ) like with a credit card, when you use a credit card, you don't really pay but at
the end of the month, the bank will charge for the amount spent using the card.

Disadvantages: of spending the person, it is possible to get into debt. If you have a
credit card because you can't pay right away, there is a late fee, and worst case
scenario, they have exceeded the maximum spending, the card can no longer be used
because there is still a pending debt. of credit cards offer as the chance to build up a
line of credit. This is very important as it allows banks to view an active credit history,
based on your card repayments and card usage. Banks and financial institutions often
look to credit card usage as a way to gauge a potential loan applicant’s
creditworthiness, making your credit card important for a future loans or rental
applications.

Biggest of a credit card is the minimum due amount that is displayed at the top of a bill
statement. A number of credit card holders are deceived into thinking the minimum
amount is the total due they are obliged to pay, when in fact it is the least amount that
the company expects you to pay to continue receiving credit facilities.
LANARIA, MAY-ANN O. JUNE 22, 2021 ( 11:00 AM)

SBENTREP-2B GROUP#3

What are the advantage and disadvantage of using credit on purchase?

For a long time people had to carry and keep lots of cash with them at all times.
This was not a storable place in which they can keep it handy. After credit cards were
introduced it helped many people out because of the many qualities it had. Credit cards
are a great asset for people and are one of the great financial creations. Some people
think that using credit cards have a disadvantage and are not a good idea. I however
think that using credit cards is a good idea and advantageous for most people. These
advantages include more benefits, a better way to structure money, and it’s safer for
people to use.

One advantage of using credit cards is that they have more benefits and features
for people. Credit cards are very useful since it is much easier to carry around than
having cash. They are better to carry around than cash because of the many benefits that
come along credit cards. Usually for every credit card user there are many packages and
offers that the credit card company gives to their clients. Once people start to use the
credit cards more often, they can get frequent flier miles based on how much they are
spending with the credit card. Another benefit of using credit cards is that as time goes by
the company can offer different promotions or packages to people, they can get discounts
on cars and other attractive products. These promotions are another way to also
advertise the use of credit cards since it is very beneficial to use. People that don’t use
credit cards and prefer to carry around cash don’t have any benefits and promotion
packages in which they can use to their favor, unlike the credit card users. These
promotions offered by the credit card companies are very helpful to some people that
don’t have the money.

The disadvantages of using credit card is paying high rates of interest, if you
carry a balance from month-to-month, you’ll pay interest charges. Purchase and cash
advance interest rates can be as high as 22% APR, so you can end up paying
hundreds or thousands more than you initially charged in interest if you’re unable to
make repayments each month.
 Credit damage missed credit card repayments and ongoing debts are recorded on
your credit file and can impact your chances of getting a loan down the track.

Latumbo,Carmela Nicole C, June 22, 2021 (8:19 AM)

SBENT 2B Group 3

What are the advantages and disadvantages of using credit on purchases?

If his competitors are unable to offer credit conditions, a seller who is able to give
trade credit to purchasers has an edge. This is reasonable. A customer would naturally
choose to buy on credit rather than pay cash for all of his transactions.

If a client does not have to pay cash for their purchases right away, they will buy
more of the supplier's items. Payment within 30 days is the most frequent credit term
given by sellers. Credit terms are rarely extended beyond this point.

You don't have to be concerned about your financial reserves. Remember that
you may always use a debit card instead of a credit card. If you use a debit card instead
of a credit card, you won't risk accruing debt that will be subject to high interest charges
if you don't pay it off each month. Keep an eye on your checking account balance to
ensure you have enough money to pay your purchases.

A dealer who offers credit to consumers, like a bank, must examine their credit
scores. This necessitates the expenditure of both money and time. Getting company
credit reports from companies like Citibank costs money, and checking references takes
time. To assist make choices regarding extending payment terms, a seller may need to
engage an extra individual with credit analysis expertise.

As a conclusion, I consider that having a credit card is advantageous. Generally,

I think that having a credit card is helpful to us, but it is critical to be responsibly when
doing so. When someone is planning to be used, they should pay it off immediately and
only use it for needs, confirming that they have the money to pay it off within the
quarter. Make the most of your cards by using them strategically and to your benefit.
However, if one intends to utilize it, it is important to be responsible. If somebody is
planning to use it, they should pay it off rapidly and only use it for necessities, ensuring
that they have the money to pay it off within the quarter.
Lorilla, Avan M. June 21, 2021 (8:24 PM)

SBENT 2B GROUP 3

What are the advantages and disadvantages of using credit on purchases?

The advantage of using credit in purchases is it is easy very easy to access, no

need to go where else to withdraw money especially in a large amount purchases,
credit helps you to access a lot of stores easily without using any cash and helps you
saves time. Another advantage is that, it has the record of you expenses, which also
helps to the side of customers if they want to monitor their expenses day by
day,customers don’t have to write down or type their expenses anymore because it will
be automatically recorded by the system where you avail you credit card. Credit cards
also offers different promos or incentives, which sometimes helps you saves money,
offers such as points can be use to purchase or to avail goods and services. With a
good use of credit for purchases, it has a lot of advantages, I’ve heard someone in the
internet that travelled around the world for free because of points that he gained for
using credit card. People just have to be responsible for using it to avoid a lot of debt.

The disadvantage of using credit in purchases is that, credit cards use a

minimum purchase amount which is a trap because it will make you spend more even If
you don’t need and it will make you purchase another thing just to reach the minimum
amount. Another disadvantage is the hidden costs, credit purchases has hidden costs
that consumers didn’t notice, hidden costs will just be added to your debt without you
noticing it. Another one is the high interest rate, high interest rate makes you debt larger
and larger, so you to pay you debt as soon as possible to lessen the interest that you
have to pay. In using credit in purchases, you must be responsible, avoid too much of
purchases using it so that you can manage you debt.

Maeffe J. Mangubat June 21, 2021 (9:22 AM)

SBENT 2B Group 3

What are the advantages and disadvantages of using credit on purchases?

Credit card is a thin piece of plastic that can be used to purchase goods or
services but it should be paid in the bank for about a month or so or whenever the date
the bank requires. It has its fair share of advantages and disadvantages and I will
discuss some in this paper.

By using credit card an individual can earn rewards or bonuses because some of
the banks encourage using the cards for buying. It can also help in acquiring things like
houses, cards etc. it serves as a basis for the businesses to see if the person is capable
buying the product because credit cards have this categories like silver, gold and
platinum. So if the cardholder has an outstanding credit history, businesses will be more
than willing to offer these products and services to them.

Using credit cards can still do harm than help to its users specially if the person
can’t control buying things through it or should I say an impulsive shopper, because it is
so convenient to use they can just fish it out their purse and use it to buy what they
want. Because they only bought it using a plastic card they wouldn’t be hesitant to buy
for they didn’t pay it using cash so they didn’t see the money that they lost by
purchasing the product. Some people can also abuse their cards that instead of it
helping them for the convenience it brings, it can make them fall in debt by
unconsciously using it for unimportant things.

As a conclusion, I personally think that using a credit card is beneficial to us but it

is important to be responsible if one is planning to use it. If someone is going to use it
they better pay it in time and only use it for essential things and ensure that within the
month they have the substantial amount of money needed to pay it off. Use your cards
wisely and to your advantage.
Paulean L. Marasigan June 21, 2021 (11:06 PM)

SBENT-2B Group # 3

Advantages and Disadvantage of using credit on purchase

A credit card that can be used to make purchases doesn't mean you don't have
the financial resources to purchase those products. Using a credit card instead of cash
or personal savings has a variety of benefits that credit card users can take advantage
of.

The advantage of using a credit card is you won't have to worry about running
out of money, which will make things easier for you. It can help you establish an
excellent credit history. Using a credit card to make purchases and paying them off on
time will help you establish a positive credit history, which will make lenders more willing
to lend to you and offer you a low-interest rate. However, it has a disadvantage to using
a credit card since they're so simple to use, they make it easy to splurge more without
sometimes thinking how much money they are spending on luxury things. These will
end up to interest charges to put it more simply, if you have a credit card balance,
everything you buy will be more expensive. It also has annual fees apply to some
accounts. Cash advances may come with costs as well as excessive interest rates.
Besides this, you could actually be paying more interest charges than you save in
discounts or cashback. Make sure the advantages outweigh the disadvantages.

To create a strong credit history and a good reputation as a credit card user, you
must understand the limitations of using a credit card and keep an eye on your checking
account balance to ensure you have enough money to cover your transactions.