Is the use of credit cards a strong indicator of a nation's economy?

[blackhawkeye1912]

I don't think so. The number of credit cards usage is not an indicator of good economy. Credit cards are simply substitute to cash transactions with additional fees, of course. A good indicator of good economy is the people's standard of living. A good economy should be able to reflect its effect on how people in that country live.

Well, I think you're trying to say is the automated card usage a good indicator of economy regardless if it is credit cards, debit cards, etc. A country with huge number of automated card usage can easily adopt bitcoin usage.

[magneto]

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 never thought of it that way. If anything, it shows how much a nation is hungry for cheap and on demand credit.

It's simply not logical to think that economic development can be reflected through the use of a single financial instrument, that is pretty much available anywhere in the world. It's not even something that requires advanced information technology in order to implement.

High levels of credit card debt only show that a country is spending beyond their means and the credit card company is doing a good job of implementing and promoting their product, and probably making bank. But imo, there is nothing more than that to it.

[CASTIEL05]

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?

Really? As far as I know, credit cards are our liability. If we does not have money to buy things, we use our credit cards and pay our debt later on. This is not an indicator of a strong economy. As a unit, it does not help us to grow because as we know, liability never been an asset. We will stock up and struggle once we have debt.

[TheClownSong]

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?

Mostly, credit card transaction to measure consumption rate in the country. Its more easier for authorities to track transaction thru credit card because using digital transaction. Using paper money for transaction is harder to track and to calculate consumption rate.
I think more credit card circulate in public doesnt mean the ability to pay because bad debt number in credit card transaction are high too

[chairmanMao]

This is wrong. Once the use of credit cards exceeds market expectations, the risk of the market will become even greater. Once the economy fluctuates, many users of the card will default, so bank funds will enter a nausea cycle. Usually this is a financial crisis. The best economy from the perspective of people's savings rate. The more money people save, the faster the money flows, and the more active the market.

[audaciousbeing]

Credit cards are responsible for people in debts today and the capitalists have found a way for force their ways into the way of life of people that you are forced to use it even though you don't need it. I have seen people forced to use it because they want to increase their credit rating in other to be eligible for things that they actually need.

On the effect on the economy, other than affording people the opportunity to have access to what they wouldn't have which ensures they live with basic comfort, the disadvantages also abound and if I am to choose in waiting to have cash or use credit, I will go for the former.

[Flor1982]

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?

Its not necessary to have a credit but its our choice to have it for the reasons of convenience and safety as money can be easily to be stolen in the streets but not the credit card. Although having a credit card will provide +1 for your trust reputation but that if you want to live in debt in which many famous rich personalities that chose to not have a credit card like Bill Gates and Warren Buffett.

[Kakmakr]

Credit card use is a good indicator of a nations debt problem and also a excellent tool for the government to monitor people's spending habits. <every transaction is recorded and stored on a centralized database>

Governments cannot stimulate economies with fiat transactions, because Fiat transactions are expensive and slow, they need debt <credit cards> to stimulate their economy. This is why more and more governments are supporting a cashless financial system. 

Debt will kill nations economies in the future. 

[haroldtee]

Credit cards are responsible for people in debts today and the capitalists have found a way for force their ways into the way of life of people that you are forced to use it even though you don't need it. I have seen people forced to use it because they want to increase their credit rating in other to be eligible for things that they actually need.

On the effect on the economy, other than affording people the opportunity to have access to what they wouldn't have which ensures they live with basic comfort, the disadvantages also abound and if I am to choose in waiting to have cash or use credit, I will go for the former.

Basic truth! Certainly those who have access to credit cards in developed countries today, even when they could not afford something, tend to just have it in their mindset that credit card will be their solution and they keep piling up debt over debt until they realize their life is already totally dependent on a huge stack of debt and trying to find a way to relieve themselves off it which to me is more like being a slave to the bank for a long time.

Simply, give people the chance to take something free in the short term and they will simply take more than you ask them. It is human nature when it comes to showing off, living a life you cannot handle in reality if you have no access to credit card, and all that puts your life into a huge pressure normally, which to me is not a strong indicator to economy but a jeopardy to human themselves.

[zhanyiguai261315]

Credit cards are similar to the nature of microfinance loans. The future income is used for current consumption, but there is an interest-free period, which can greatly meet the needs of consumers and the rapid development of the national economy.
The country's economic indicators need GDP to react! Credit cards can't respond to the economy!

[Indrawan77]

Credit cant be the measurement of a country economic, moat of the people consider credit card as debt, so the more people using it then the more debt it accumulated, but i think that ia not the way to see nation economic, you can see the nation economic with how big is the unemployment rate and how many homeless people, using credit card or using fiat doesn't reflect the country's economic but its more on the habit and the easiness for people to do transaction

[shield132]

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?

At least it means that some technogies are integrated in country and people don't look surprised when you ask them if you can pay by card. On another hand it means nothing dramatic, some prefer cash and some prefer their cards, depends on person too, people who have online banking and usually make transactions, prefer this way. Old people and others who get paid cash, usually self-employed, prefer to use cash and don't load cards or own it. Btw I would say, if there are many users with visa gold cards, then yeah, it means good economy

[semobo]

The more usage of credit card means how poor the ciitizen are,they can't even cover their monthly expenses with what they are earning they are looking for cssh from someone is not the good economy.

[Semosuchi Tesongrato]

The use of a credit card and the abandonment of cash only indicate the level of brainwashing by the government: with the credit card, not only is all your expenses recorded and tracked, but also your position. Good luck!

[gentlemand]

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.

It's more about cultural attitudes than technology.

Japan is an advanced economy in anyone's book yet it's still overwhelmingly cash based.

Credit cards have piddling penetration in Germany. There aren't a great deal in France and French banks are extremely reluctant to allow their customers to get into debt. In the UK the banks are delighted to let everyone hang themselves so everyone has them maxed to the hilt.

[_Miracle]

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?

Credit card companies do many things to encourage use of their cards (miles, points, ect).
I personally prefer to use a card to pay for most things, it is an excellent way to see how you really spend money.

What is reflective of our ability to pay is how much debt we are in, and yes that can be a strong indicator of a nation's economy.

[darewaller]

Thankfully I live in a country where the bank has an amazing app and since one bank does all banks rival for the best app there is on the market in order to be not left behind. Thanks to these amazing apps it shows how much you spend and if you want to pay right away or would you prefer 3/6/9 months installments and all that.

Our banking system is really far ahead of many in the world for customers instead of just banks and that is great.

However, just because of these doesn't mean the economy is any good, in fact we are much better in this system exactly because our economy sucks, since our economy sucks banks can't really make too much money and they need to get as much market share as they can otherwise they are not really making too much money from this bad economy to begin with.

[iv4n]

The use of a credit card and the abandonment of cash only indicate the level of brainwashing by the government: with the credit card, not only is all your expenses recorded and tracked, but also your position. Good luck!

But if it happens to you to get robbed, robbers can`t do much with your credit card, they need password. so credit card can protect your asset in some way. Capitalism is all about spending money, possibility for more money to be spend make one economy better than other, will you spend that money in form of cash, credit card or anything else isn`t so important.
And if someone wants to track you done he can do that in million ways now, you have a cell phone with gps in it, so what to talk more about tracking down, we are all online, we are not even hiding from anyone.

[beerlover]

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?

What you exactly mean ? Government encourages credit card based transaction or just electronic mode of transaction ? Because, I doubt that you are not having clear understanding between these two types of  mode of transactions. As far as I have observed that no government will emphasize their citizen to go for loans but now a days, many governments are slowing enforcing citizens to go for electronic mode of transaction due to the reason of "easy tracking".

Cashless society is the stage on which governments are believing to have all the control of money-flow. But, I believe no government will be successful on their actual target as privacy is the basic human right and no government may not interfere into that.

Using a credit card cannot be an indicator as it is just another type of loan. A nation's economy has nothing to do with it.

[cahbagus555]

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?

More peoples transaction using credit card can be indicated the consumption in the country is stronger. But i dont think thats a strong indicator of nation's economic because its public debt. I think stronger compsumtion indicate a good economic growth