Credit Cards Continue to Make Headlines
We sure have been hearing a lot about credit cards in the news lately. Congress and now President Obama himself are getting involved with how the credit card industry operates. It is their wish to regulate the industry after fielding thousands upon thousands of complaints from cardholders.
We’ve talked a lot about the issues involved. I don’t see any reason to go over those again. Please feel free to read the last few posts so you can get an idea of exactly what those issues are and how they may affect you.
What I would like to talk about right now is what exactly is credit and what does it mean to us?
Were you aware that the word credit is a Latin word derivative that means “to trust”? And that is exactly what credit is, isn’t it? You’re basically borrowing some else’s money and they are trusting you to repay it.
The reason that the lenders are willing to lend you their money is because not only do you promise to repay the principal in full, but also interest on top of it. And for this reason, credit becomes profitable to the lender.
There’s no doubt that the vast majority of Americans first foray into acquiring credit was through a credit card. And as we all know, when we use our credit cards it is pretty much like taking out a loan that we promise to repay in the future in exchange for acquiring something in the here and now.
That is how credit card companies and banks that issue credit cards make their money. And it is a very substantial business to say the least. One of the most profitable businesses in the world as a matter of fact.
Credit does have its price and credit cards are certainly no exception. In our next post we will discuss the advantages and disadvantages of using credit cards.
Related Information:
- Chase Credit Cards Poised To Make A Move Chase credit cards are now going to compete for the business and wealthy client niches....
- Credit Card Companies Continue to Hike Interest Rates Credit card companies continue to hike interest rates before credit card reform legislation takes hold....
- 10 Ways That Thieves Make Identity Theft Happen See how identity theft happens so that you will be able to effectively guard against it....
- Proposed Bill Will Make It Mandatory To Disclose Dangers Of Debt There is a new bill being discussed whereby credit card companies would be forced to educate prospective cardholders on the danger of debt....