People cannot live without money. The role of finance is to buy basic and luxurious things in life. Barter trade system was used in the past for livelihood. Barter trade system carries the exchange of commodities for commodities. Historically, the white people exchanged jewelry items for animal skins with the black people. There are many problems associated with the barter trade system as compared to the currency system. It is was more wearisome to carry out the barter trade system as compared to the currency system since it was all about journey on foot. Traders were usually at risk of attacks from wild animals. The cold weather and the scorching sun made traders to be vulnerable to diseases such as common cold and skin diseases. The currency system came as a result of advance in technology. The currency system is all about the use of manufactured money for business reasons. Cash in the currency system is made up of metal and paper material. It is known for coins to be lower in value when compared with paper money. The currency system does not need traders to move from one place to another for profit gain.
It is very easy and convenient to use the currency system when doing business. The use of the currency system has opened financial institutions. The function of financial institutions is to help people financially. Real investors for an example can get a mortgage in a given financial institution. There are both public and private financial institutions. It is known for the private financial institutions to be opened by an individual or group of individuals while public financial firms by the government. The currency system has led to production of credit cards and debit cards. Credit cards and debit cards are transaction cards made from metal and plastic material. It is very easy to use and carry credit cards and debit cards. Expect credit cards to be more protected as compared to debit cards. People with credit cards can claim for the lost or stolen goods as opposed to debit card users.
Many people are nowadays coming to know the advantages of credit cards. There are many types of credit cards. It is recommended for one to look for the right credit card of their need. It should be your aim to value some things when applying for a credit card. It should be your first priority to carry out a research to get the right credit card of your need. You should not forget to view the amount of interest rate charged by the owner of the credit card. You should qualify for a credit score when applying for a credit card. It should also be your goal to research on the advantages of a credit card in term of offers before applying it.