Wednesday, June 19, 2013

Importance of Credit Cards in the Context of Human Trade and Finance

Finance is a broad concept which can actually be placed under two concepts, one as the study of how money is being managed, and another is the allocation of resources efficiently. Finance is a very important terms in the aspect of mankind, as human being just cannot exist on earth without finance. Each and every entity on earth that is being managed or run by man needs finance, be it a micro concept as, functioning of a single household, or in the broader aspect as the functioning of entire government or large business firms, all need finance to develop and grow as well as exist. 

Origin and Types


Origin of the term finance can be traced back to the time of the development of human civilization, however it can be found as a very popular word of the eighteenth century, meaning of which is management of money and wealth. Later this term has evolved into a greater extent, not only in the aspect of its practicality or academic importance, but also it is regarded as one of the important branch of economics. Finance is thus important in overall growth and development of human being. Finance can be also categorized in three forms according to the importance and uses such as public finance, personal finance and corporate finance.

Evolution of Payment and Transaction


With the advent of science and technology, human have made large progress in the field of science and technology. Not only in the area of science, have they moreover developed as most advanced species on earth. With the fusion of technology in every sphere, financial transaction has also evolved in more advanced from. Gone were the days of barter system or paper money. Now transaction is made largely through the process of plastic money or electronic payment. The growth of technology has revolutionized the procedure of money payment with e-money, debit cards and mobile payment gaining more popularity. 

Importance of Credit Cards


It is often said that if the outstanding balance is paid regularly at the end of each month, and if the expense is controlled efficiently, Credit Cards are the best source of money payment and making useful transaction. Credits Cards are very important tools dealing in the concept on finance and hence its benefits can be numerous.

1. Helps in resolution of Disputes – Credits cards are more secure and active than debit card in terms of any fraud transaction. In debit cards money may be out of your bank account by the time you come to know, but credit cards are safe in the way that in case of any fraud transaction, money remains intact.

2. Get More On Payment- While making any payment through credit cards, there are various schemes and offers available on the credit purchase, such as money back guarantee, money refund scheme, or bonus points, or even surprise gifts. These are not available on any other mode of transaction.

Conclusion

Thus credit cards offer plenty of benefits one can avail of than any other mode of payment or transaction. Finance is therefore very important aspect of human civilization and without it the entire society just cannot exist. Importance of credit Card is also inseparable, as it is one very important mode of money transaction and payment, thus becoming one very important tool of human trade and finance.

Author’s bio – Alisa Martin has written several quality articles on Logbook Loans. She suggests her readers to visit Logbookmoney.com to avail more information on the same.


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