Credit cards aren’t just plastic cards that are swiped when buying in the mall or paying for a room you used in a hotel. These plastic cards have value in them and when disregarding the idea of credit limit, its value can be limitless. Many people say that they can live without credit cards. That’s absolutely a perfect idea. If you have made through the first sixty years of your life without credit and you have a stable financial situation right now, congratulations!

But in reality, how many in this billion people population in the United States have ever lived until 60 years old without getting any credit? When the creator of Diners Club credit card Frank McNamara was dining at Major’s Cabin Grill in New York with business associates some half a century ago, he realized he has forgotten his wallet. How did he pay his bill? He called his wife to bring some money over and paid the bill. He then pulled out an idea to create a card that would allow a person without cash to eat in the restaurant. Diners Club pays the bill, then the customer pays Diners Club. With that situation, credit became an important tool in our lives. With the growing population, limited resources, including money, and the increasing prices of goods, credit will heed certain problems. I’m not saying that credit is important above everything, but credit has a lot of things to contribute that are necessary for our survival.

According to industry experts, the problem is credit has been too good that it became a problem in America. The root of the problem? Though some point at credit companies alone, card holders must have a share of the blame, too. When customers abuse the use of credit, credit card companies tend to see this as a trend and thus, increases credit card offers. And to reverse sides, credit card companies tend to become abusive, leading to self-inflicted customers defaults and poorer customers. Consumers don’t get enough credit management problems and credit card companies seemed filled up with having defaults because they are the ones facing the risks. That is why giving instant approval credit card is rare to middle-income earners.

The answer to the credit problem? Reforms which are fair to both parties, meaning credit card companies and consumers, would count one. There should be laws, such as usury laws, to restrict charges and fees by credit card companies. Credit management lessons for consumers and careful study of credit card companies. Solutions are a hard to initiate but if consumers start to use credit wisely, including the use of it only when necessary, things may come into good terms.

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