Introduction
Credit cards have a huge market among people who are shopaholics and people tend to fall into the claws of banks and marketing people giving out credit cards and later get stuck with debts. The credit unsecured cards are more dangerous than the secured credit cards. The major reason that people flock to buying credit unsecured cards are that they do not require very stringent paper works. The rules to get these cards are easy and the terms and conditions are easy for people to understand. But what many do not realize is that there are some hidden traps with the credit unsecured cards.
History
It is a said the use of credit cards first began in the 1920s in US when individual firms started giving them to the customers. The initial credit cards were in the form of metals like coin plates, then to fiber and later to its current plastic form. John Biggins of the Flatbush National Bank was the first to invent the bank issued credit card in 1946. The credit cards in its plastic form hit the markets in the 1950s. The popularity of the credit cards began in the late 1970s and there was a boom of the industry in the late 90s. Now it is hard to find people who do not use a credit card.
Features
While purchasing credit unsecured cards there are no need for you to fill up many forms that will give details about your income and your credits. So many people venture out to buying this as the restrictions are less. People do not have to go through the hassle of filling up several forms and those never ending procedures. But the real dangers of the credit unsecured cards are that you will fall into a debt pit if not used properly. If you are having some credit unsecured cards, you will not know the limits of your card and keep purchasing. Where as in a secured credit card, there will be certain credit limit and credit set aside. The other part is that at least three credit bureaus will keep a check on the history of payments made by the credit unsecured cards.
Tips and comments
• There is a greater chance of developing debt with the credit unsecured cards, whereas with the secured card people will be more vigilant to pay the bills on time otherwise it may affect their property or assets.
• What makes matters worse is that when companies realize that you are already in the debt they will try to sell more credit cards to you and please do not fall into this trap.
• Many people fall into this trap and make the situation worse for them.
• What one should understand first is that buying more credit cards will never get you out of the problem of debts.
• One more word of caution to you is that if you feel that you are a shopaholic and cannot restrain from buying stuff, it’s better to go for a secured credit card.
• People, who speak in a polite manner when they are trying to sell a credit card, will behave harsh when we are unable to pay the debts.
