Why Use Credit Cards?

About why people use credit cards as a method of payment in America, spending habits of people.

WHY USE CREDIT CARDS?

A report issued by the National Business Council for Consumer Affairs states that "... credit enables individuals to make purchases, benefit immediately from their utility, and pay for them over a period of time." The American consumer explains that he uses credit cards, "because it's safer than carrying cash," "to buy what I have always dreamed of," and "to make traveling more convenient." He also gains the psychological "prestige" from carrying a wallet loaded with credit cards, his proof that he qualifies as a good financial risk.

Surveys have shown that consumers spend 23% more when they are able to use credit cards than they do when paying cash. The psychology behind this spending pattern has not gone unnoticed, as credit-card issuers continue to expand their operations and increase their profits. The growth of the industry is remarkable, considering the fact that credit cards are "relatively" new.