As some may have observed, highly developed countries like the US encourages their people to use credit cards for transactions. Cash transactions are still used but mostly they prefer people to have their credit cards. I want to know if having a credit card really necessary even if they can afford to pay in cash? Are credit cards reflective of your ability to pay?
I think that is wrong perception, of course government will encourages their people to use credit cards because their bank will get more profit. I don't think that credit card is a good thing because it still costly to make transactions using it. I prefer to use bitcoin because it's more practical to use. 
Topic: Is the use of credit cards a strong indicator of a nation's economy? - page 4. (Read 725 times)
November 14, 2018, 11:44:49 PM
November 14, 2018, 06:48:43 PM
As some may have observed, highly developed countries like the US encourages their people to use credit cards for transactions. Cash transactions are still used but mostly they prefer people to have their credit cards. I want to know if having a credit card really necessary even if they can afford to pay in cash? Are credit cards reflective of your ability to pay?
Yeah it could be a good indication how successful a nation are if people are encourage to used more of their credit card rather than bringing huge money with them. Actually, I was quite surprised when I traveled to US before and people are using their credit card and their bank cheques to pay even a small amount of money. Well in my place where I lived in, there's a lot of people also using their credit cards but I'm assuming they just used it to buy 'expensive' items. And most of the time if credit cards are used here, it raises some eyebrows specially to those behind you because it takes more time to processed it, so the lines piled up.
November 14, 2018, 06:21:46 PM
Your statement will make sense if you replace the word "credit card" with "plastic card", at least me! Developed countries encourage their citizens to use plastic card more often than cash. Sweden is the first country in the world who had achieved such milestone. It is an effective measure to curb black money to be mixed within the economy.
On the other hand, credit card is a banking trap. In some third world countries, credit card companies take interest as high as 48% per annum. Credit card doesn't signify the development of a country, it signifies the control of banking cartel over the country's economy.
On the other hand, credit card is a banking trap. In some third world countries, credit card companies take interest as high as 48% per annum. Credit card doesn't signify the development of a country, it signifies the control of banking cartel over the country's economy.
November 14, 2018, 03:55:52 PM
As some may have observed, highly developed countries like the US encourages their people to use credit cards for transactions. Cash transactions are still used but mostly they prefer people to have their credit cards. I want to know if having a credit card really necessary even if they can afford to pay in cash? Are credit cards reflective of your ability to pay?
I guess it does indicate where a country is in terms of technological adoption, as credit cards being popular. With more cash dominated places, you generally tend to see adoption of new technologies to a lesser degree.
But the decision to go cashless isn't really on the consumer, and there are obviously countries where economic development isn't really that high, but they are still forced into using credit cards or other cashless payment methods due to their fiat currency being dysfunctional.
It is not reflective of your ability to pay. IMHO, it could be reflective of debt since credit card is essentially loans on demand. If you look at most western countries, you'll see that the levels of credit card debt is just crazy right now. Anyhow, credit cards are really not something that's new and I think if you want an indicator of a nation's economy economy, still look at all the traditional indicators like GDP etc. depending on your needs. If you want to look at how receptive they are to new Fintech, look at their policy with crypto.
November 13, 2018, 05:50:41 PM
As some may have observed, highly developed countries like the US encourages their people to use credit cards for transactions. Cash transactions are still used but mostly they prefer people to have their credit cards. I want to know if having a credit card really necessary even if they can afford to pay in cash? Are credit cards reflective of your ability to pay?
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