CREDIT CARDS How credit cards work Credit Cards

  • Slides: 8
Download presentation
CREDIT CARDS

CREDIT CARDS

How credit cards work. Credit Cards are issued to qualified customers. When purchasing with

How credit cards work. Credit Cards are issued to qualified customers. When purchasing with credit cards you have to sign or enter a pin. Electronic Verification system Pay the card company Monthly credit card statements

History Edward Bellary used the term credit card eleven times in his 1887 book

History Edward Bellary used the term credit card eleven times in his 1887 book “Looking Backward”. Early Beginning from 1900 -1946 oil companies and department stores issued their own proprietary cards. First bank card “Charge it” in 1946 by John Briggins. Next came “The Diners Club Card” Stared in 1950. In 1958 American Express enter the credit card industry. American Express introduced the first card made of plastic in 1959 (before cards were made from cardboard/celluloid. Bank. Americard was established in 1959 later to be know as Visa

Debt Facts 78% of American household have one or more credit cards American Credit

Debt Facts 78% of American household have one or more credit cards American Credit card debt in 2008? $ 972. 73 billion Average credit card debt per house hold in 2008? $ 8, 329 As of March 2009, U. S. revolving consumer debt, made up almost entirely of credit card debt, was about $950 Billion. In the fourth quarter of 2008, 13. 9 percent of consumer disposable income went to service this debt. 76 percent of undergraduates have credit cards, and the average undergrad has $2, 200 in credit card debt.

Benefits Convenience Security (accident and health) Dispute protection Fraudulent charges Extended Manufacture Warranties Credit

Benefits Convenience Security (accident and health) Dispute protection Fraudulent charges Extended Manufacture Warranties Credit card purchase protection Bank overdraft fees and other related expenses Worldwide Acceptance

Disadvantages It can become a loan Interest charges Damage credit rating More debt then

Disadvantages It can become a loan Interest charges Damage credit rating More debt then you can handle Complicated terms and conditions Cost more than other forms of loans

Credit Card Profits “The credit card industry is the most profitable one in the

Credit Card Profits “The credit card industry is the most profitable one in the United States with annual earnings in the $30 billion range. Many people might be surprised to learn that a single credit card issuer -- MBNA -- earned 1. 5 times more profit than Mc. Donalds in 2004. Citibank, another major credit card Issuer, earns more profit than both Microsoft and Walmart. ” http: //www. bcsalliance. com/creditcard_profits. html

CREDIT Credit Cards AdvantagesDisadvantages Bankruptcy Credit Cards CreditCREDIT Credit Cards AdvantagesDisadvantages Bankruptcy Credit Cards Credit
Credit Cards Avoiding the Credit Trap Credit CardsCredit Cards Avoiding the Credit Trap Credit Cards
Credit Cards CREDIT CARDS UNDERSTANDING THE CREDIT CARDCredit Cards CREDIT CARDS UNDERSTANDING THE CREDIT CARD
Credit Cards Credit Types of Credit Credit theCredit Cards Credit Types of Credit Credit the
CREDIT CARDS Credit Cards When used and managedCREDIT CARDS Credit Cards When used and managed
Credit Cards Personal Finance Lab Credit Cards 101Credit Cards Personal Finance Lab Credit Cards 101
Credit Cards in the U S Credit CardsCredit Cards in the U S Credit Cards