1) Credit cards can cause users to overspend and fall into debt due to high interest rates and unexpected fees. While convenient, credit cards encourage spending beyond one's means. 2) While credit card companies provide some purchase protections, users are still subject to fees like cash advance charges and high penalty interest on unpaid balances. 3) Although credit cards can help build a positive credit history, they also risk deepening user debt over time as interest charges accumulate on balances that are not paid off each month.

1. Credit Card is Harmful for users
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Credit Card is Harmful for users
Nurzahirah bt. Baharin (141240276)
Siti Aminah bt. Mazlan (141240292)
22DG1/IB
University Malaysia Perlis

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Abstract
This essay is about the disadvantages of using a credit card. Where, credit card have
more disadvantages rather than advantages, thus, the user of the credit card may end up with
financial problem or burden. The thesis statement of this essay is credit card is harmful for
users as it causes users to overuse the credit card, unexpected fees and deepening the user
debt. The topic sentence for Body Paragraph 1 is credit card is convenience because it can save
your time and trouble. But in using a credit card, it may lead you to overuse the credit card.
And the topic sentence for Body Paragraph 2 is credit card company will provide a purchase
protection to their customers. In spite of this, there is unexpected fees. Finally, the topic
sentence for body paragraph 3 is even though the use of credit card can build a positive credit,
it also may deepening your debt.

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For those who are planning to fill a form to apply a credit card, should rethink again
after read this facts. According to Tang (2015) “Cash, Debit and Credit Card” publish by New
Straits Times”. The first impression of credit card by the public or the user, is like a ginie where
the user can get anything that they wish but the pleasant is just at the moment you swipe the
plastic card and take away the goods from the shelve, but actually the moment you felt the
pleasant you are deepening your debt to the bank. Thus credit card is harmful for users as it
causes users to overuse the credit card, unexpected fees and deepening the user debt.
The credit card is convenience because it can save your time and trouble. Where you
don’t have to waste time to search and queue waiting for your turn at the ATM machine to
withdraw your cash. Besides that, credit card is useful in times of emergency. Credit cards also
will avoid the user from keeping a lot of cash on-hand. It will avoid the user from losing their
money if there are an accident happen such as the user lose their wallet or someone may steal
their credit card number. The user can cancel their credit cards by calling the credit card
company immediately when they realized about it and to cancel all the purchases made by
another person after they lost their cards. Credit cards also convenience because some of it
offer benefits such as travel and emergency assistance. By using credit cards, the users might
not face trouble when there are emergency and need to withdraw a lot of money. They also can
check their card to see what travel advantages are available and offering. But it may lead you
to overuse the credit card, by revolving the credit card, makes it easy to spend more than what
you can afford. Meaning, with the existence of credit card, you may think that you able grab
anything that you wish from the shelf and you are not consider about the price, or think about
whether you could afford it or not. You may spend money beyond you means. According to
Tang (2015) , the New Straits Times, “Cash, Debit and Credit Cards”, she says that Credit
Cards let you spend more than you have in your bank account, but what they are actually doing
is giving you a loan with a high rate of interest, so you will end up paying even more for

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something you could not afford in the first place. Thus, as Thomas Jefferson quote says “Never
spend your money before you have it” to avoid from risking yourself in financial. Just because
the users do not realized about their spending money by using the credit card, they will face
another problems. For example, they will be burden with debts by their overuse money in their
accounts. There are increasing amount of the people that have been officially being bankruptcy
because they cannot adapt to their financial burden.
Besides that, Credit Card Company will provide a purchase protection to their
customers. Under Section 75 of the Consumer Credit Act, credit cards issuers and retailers take
joint responsibility for faulty purchases. Meaning, the user of credit card will be protected in
the event that it’s faulty if they are purchase for something valued between £100 and £30,000.
They can claim for a refund from card provider. Where most of the company will provide an
extra protection if you lost, damage or stolen something that you have just bought. According
to Khaidir (2015), in the articles title “The Plastic of Choice”, he says that Credit Cards do
hold a certain advantage. Consumers who pay their balance in full each month can benefit from
up to certain days of free float the time between when a purchase is made and when you actually
pay your bill. By the credit card statement, you can showed the fact that you have bought the
goods. In spite of this, there is unexpected fees. Usually, to get an advance cash you need to
pay around 2 to 4 percent, and it carry high interest rate. Furthermore, the credit card company
will charge you with high amount of interest on each balance that you have failed to pay at the
end of each month. The credit card company making their money by collecting their interest
that included in the credit card. Usually, the company will put around 10% if we are making a
loan from a bank and if the user owe money to a credit card company, they have to pay the
around 20% interest. Because of this, most of credit card user get into debt because of the high
interest rates.

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In addition, by using the credit card it build positive credit. Which means controlled use
of credit card can help you establish credit for the first time or rebuild if you had financial
problem in the past. According to the reader Ryall (2014), experience, he paid off the card
twice a month instead of once a month. To be sure if he forget to make one, at least he already
did one and the interest rate would not be increased for being late. Besides that, he paid off all
his credit, and got a good score, then switched to a low limit credit card to train himself. Now
he had much higher limit and he manage his spending responsibly. When you are manage to
build or rebuild a good credit history indirectly the used of credit card can be the advantage of
you. For an illustration, when you intend to buy a house or car by loan, the first thing that the
bank do is to check your financial and credit history. Since you have a good and solid financial
and credit history, you have proof to the bank that you are able to pay your bills, thus it is a
good persuasion in order to get the trust from the bank to trust you with large amount of their
money. Even though the use of credit card can build a positive credit, it also may deepening
your debt. With the credit card, consumer are using credit more than before. As they encourage
the consumer to spend money that they don’t have. By means even if you only have $100, but
yet you are able to spend up to $500 or even more on your plastic card. Gradually, your debt is
deepening due to interest charge on each balance that you don’t pay off at the end of each
month. Consumers actually use the money more than they have in their account. So, without
they do not know, they actually make loan with the bank because they are using others money
in the bank. Because of that, many consumers that use credit cards will actually increase or
deepening their debts with the bank.
As has been noted, credit card is harmful for users. As it causes users to overuse the
credit card, unexpected fees and deepening the user debt. Thus the readers who are planning to
apply the credit card should reconsider if you are able to manage a good credit history, whether
you are smart enough to use it in a wiser way, or you are strong enough to be a discipline credit

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card user. If not, you might spending and go over your limit, you are not able to pay off the
credit in full at the end of each month and you will end up charged with high interest rate.
Sooner or later if the problem getting severe you might end up as a bankruptcy.

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References
Ching. Debit card versus credit card : Which is right for you? Retrieved on June 13, 2012
from https://www.imoney.my/articles/debit-card-vs-credit-card/
Adam, D. Debit Cards vs. Credit Cards: Your best arguments. Retrieved on July 1, 2014
from http://lifehacker.com/debit-cards-vs-credit-cards-your-best-arguments-
1496414950
Tiffany, T. Cash, Debit and Credit Card. Retrieved on March 17, 2015 from New Straits
Times. http://www2.nst.com.my/channels/niexter/cash-debit-and-credit-card-
1.406708
Khaidir, A. M. The plastic of choice. Retrieved on March 17, 2015 from New Straits Times.
http://www2.nst.com.my/nation/the-plastic-of-choice-1.161939
Emily B. A Beginners’ Guide to Credit Cards. Retrieved from
http://www.gocompare.com/credit-cards/credit-cards-explained/