Evaluating the need for Credit Cards

Evaluating the need for credit cards requires that we take quite a number of factors in to account. Where only a couple of decades ago, it was possible to manage one’s finances quite effectively without any true need for a credit card, the way in which the world has changed has meant that credit cards have become an essential part of life in so many different ways.

Perhaps the initial factor which heightened the importance of credit cards to beyond simply the convenient was the increasing number of occasions where we purchased items or arranged services via the telephone. These products and services were of course at one time paid for by settling an invoice on receipt of the goods or performance of the service but more and more it became the case that payment had to be made by credit card (or perhaps debit card) prior to the goods or services being provided. This meant that a lot of people who had never before so much as considered having a credit card were perhaps reluctantly forced to apply for one due to the fashion in which they conducted much of their business.

The innovation that is the Internet probably had an even bigger effect upon the need for credit cards. In a similar way as to which goods were previously purchased by telephone, the Internet provided and continues to provide a similar service. Huge online retailer such as Amazon.com provide fantastic price savings on a huge range of products and in order to take advantage of these discounts, the savvy shopper will in most instances require to have a credit card.

Very often, when we book such as hotel rooms via either the telephone or the Internet, the hotel will require a credit card number purely as a form of deposit upon the room. The card will not be charged at that stage and the guest will have the option of paying by other means on the occasion of their visit but the card details are required in order to hold their booking.

There are even some traditional retail outlets in present times who will insist upon payment by credit card. This is a sad reflection on modern society as it simply eliminates the need for them to retain cash on their premises and serves to deter would-be robbers.

The need for credit cards in modern times is therefore something which most people know and the evidence would suggest that the need for credit cards is only going to grow as technology advances at its ever growing pace.