BANKING UNIVERSITY OF HO CHO MINH CITY
GRADUATE DEPARTMENT
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ADVANTAGES AND DISADVANTAGES OF
CREDITS CARDS TO THE CUSTOMER
Subject : Finance anh Banking
Lecture : VŨ THỊ TUYẾT NGA
Class : 11B1.1
Student : TRẦN HUỆ CHI
Saturday ,May 01, 2010
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PREFACE
Credit cards are a risky part of banking. Banks have set this up very well in a
way to profit both them and the customer. There is not a perfect thing in this
world and that includes credit card handling. Most people are often terrified
of using credit cards, but there is nothing in this world that does not require
risk taking.
The credit card has only been a terror to those who have not handled it very
well and carefully enough. Just as other things, it has both advantages and
disadvantages. The credit card is just another one of those services, and if it
has worked for some, why not work for others?
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CONTENT
I/Credit Cards: Advantages And Disadvantages
1.Advantages
One advantage of the credit card is that it is very portable and can be moved
easily from place to place. This card can be placed in a handbag or a wallet
without having to worry about it getting lost. The credit card is therefore a
risky liquid good, like cash, that one has to be very careful of using because
if you don’t write down, and keep track of everything that you spend using
your card, you may eventually go into debt.

Another problem comes as a result of the unlimited use of the credit card.
The credit card can be used anywhere for all of a person’s expenses over and
over. It does not give the owner details of what the remainder is in their
account as they go about spending. The person can be tempted to over-use
what they have without their knowledge, only to be shocked when their
accounts run out of credit.
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These credit cards do not let the person see the utilization of the credit in
their account. The money involved is only handled by the bank and the bank
can take this opportunity to take advantage of the naive customer and take a
little more than they should during these transactions. This puts the customer
entirely at risk, since they do not know what their money is doing solidly
within that account.
Credit cards can also be dangerous, since they are portable, they can easily
be lost. When the credit card gets lost, it is difficult to renew it. The process
often requires a little patience from the customer, which is often frustrating.
The credit card renewal is a difficult to prove process, if a person has truly
lost their original credit card and they have to discuss the reasons as to why
the renewal has to be done.
To be able to transact the credit card, payments are supposed to be made to
the bank directly on fixed dates and when one delays it, it incurs heavy
expenses. The charges are what usually constitute the main cost. This is
argued to be where the bank profits come from mainly. It is only wiser that
this is only left for those who understand its use fully!
II/So what is the correct way of approaching and dealing with
credit cards?
1.There are several things you can do to prevent credit card fraud:
o If you lose your card or wallet, report it to your credit card
company immediately.
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II/So what is the correct way of approaching and dealing with credit cards?
…………………………………………………………………………… 4
CONCLUSION…………………………………………………………… 6
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