Disadvantages of credit cards

Commerce study Manual STUDY MANUAL|PDF NOTES|SYLLABUS|REVISION
    1. To acquire the card the applicant is required to have an established credit record.
    2. The holder is charged high interest rate card company.
    3. It is prone to abuse through fraud.
    4. The interest is charged if there is delay in repayment.
    5. A minimum age of 18 years is required for one to become a holder.
    6. The holder may be tempted to overspend
    7. Their use is limited to only specific areas(urban areas).
    8. Faces competition from other means of payment e.g. cheques,money orders and postal orders.
    9. Only few businesses accept cards.
    10.  Long procedures are involved in getting the card.
    11. The cards can only be afforded people with high income.

CONCLUSION.

Economists of various countries usually strive so as to ensure that the economy follows export promotion(this are deliberate attempts government to encourage the export sector) motives as opposed to import substitution motive( a trade option policy entailing an attempt to replace commodities that are being imported,usually manufactured goods,with domestic sources of production and supply and have been criticized in recent years as foreign firms are always the beneficiaries).



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