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Ch(3) : Accounting for Receivable72Advantages and Disadvantages of Credit CardsAdvantagesDisadvantages%uf0b7PurchasingPower:Credit Cardsenable users to make bigticket purchases they might not otherwise be able to afford.%uf0b7Rewards:Many cards offer rewards programs that will accrue points, discounts, or other benefits like frequent flyer miles.%uf0b7Convenience:Credit cards reduce the need to carry cash. Most retailers accept credit cards and they are requiredfor online purchases.%uf0b7Track ability:The electronic record keeping that comes with credit cards make it easy to track your spending and identify Fraud.Use during anemergency:There are times when money is the simple solution to an emergency. If you get hit with an unexpected expense, credit cards can be the quick and easy solution you need.%uf0b7Builds credithistory:Responsible use of a credit card over time builds your credit history, qualifying you for better interest rates and other financial benefits.%uf0b7Overspending:Credit cards can make life easier, but they can also make overspending easier as well. With a credit card, you%u2019re spending money you don%u2019t necessarily have yet. If you%u2019re not careful, this can quickly lead to unexpected debt.%uf0b7Interest andfees:Using credit is essentially borrowing. And you%u2019re not borrowing for free. Mismanaging a credit card can lead not only to a high balance, or maxed-out card, but also to debt in the form of interest and fees.%uf0b7Fraud:Credit cards (and other electronic forms of payment) carry unique dangers. Credit cards can be stolen, their numbers can be copied, and they can be used to steal your money and identity.%uf0b7MountingDebt:If you carry a balance on your credit card from month to month, it can be very easy for charges and interestto rack up. Many people don%u2019t expect credit cards to be gateways to extra debt, but if you%u2019re not careful, that%u2019s exactly what happens.