CREDIT

CREDIT

                 Credit is a payment that which can be done without having to spend cash at the time of transaction. There are advantages and disadvantages of credit. For advantages, credit able to buy needed items now, quick,and easy to buy item we want. Just give our a valid credit card and we get our needed items. Don’t have to carry cash, yeah.. if we use credit, we don’t have to carry a lot of cash because we can make transaction by credit. Creates a record of purchases, with credit we know how many our purchases, our debt, and also our limit credit payments. More convenient that writing checks, if we are shopping at the mall, of course we can’t pay by checks, usually the shop only accept payment by cash, debit or credit card. So, It’s more convenient. Consolidate bills into one payment, by using a credit card, we can also consolidate bills into one payment so it will be easier for us when pay the payment. For disadvantages credits, with credit we will get charge interest on loans granted. May require additional fees, and also credit can require additional fees like a late fee when passing term credit repayment. Financial difficulties may arise if one loses track of how much has been spent each month, because we can’t know that spending has exceeded the limit of available funds on credit. Increased impulse buying may occur, we’re easy to buy, then we can’t increase implusif.

                  

                     Before we open the Credit account, we must know the three Cs. The three CS is three point most important to handle a creditor to set the use of credit. The three Cs consists of  character, capital, and capacity. Character as a guarantee, will you repay the debt? That is whether you have used credits before, you have characters that can be trusted to repay the bills on time. Capital as a guarantee, What if you don’t repay the debt? To have a credit that right you must have capital like a savings account or property that could be pledged as collateral or futures investment to can repay the credit. Capacity as guarantee can you repay the debt? You have been working regularly in an occupation that is likely to provide enough income to support you use credit.

              

                     My reflection, I think the credit is useful when we need convenience in transaction but the effects of credit is very dangerous when we were unable to repay credit payment. Our possessions could be seized  and we lose everything that we have to pay the bills if we can’t repay credit payment. It should be to have a credit account we should really be able to repay our obligations as creditor and fulfill the three Cs as three point most important to handle a creditor to set the use of credit.