Daniel Freigo,
Lucas Herman Isela Prado
Tammy Mattix
Alek Delgado
Sociology 101 -220
Dr.Reginald F. Sey
What to do and what not to do with a credit card
What is a credit card? How does a credit card affect me? Those are some of the topics that everyone that is looking to start up a credit card program. A credit card is a payment card issued to users as a system of payment. Scholars of how stuff works describe a credit card like “It allows the cardholder to pay for goods and services based on the holder's promise to pay for them”. The issuer of the card creates a revolving account and grants a line of credit to the consumer from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card has annual fees that you must pay each and every month. Basically a credit card has two types of payment. These two types of payment are over time where you only pay the minimum amount per bill. Or you can pay the full amount before the bill is due. If you do not pay this within the certain amount of time that they allow you will receive a late penalty. What the numbers mean on the front of the card is the system number, bank number, account number, and then the check digit. The first digit of the credit card is called the system number. It means that the card is a Visa Card, MasterCard, and Discover Card. The cards that I mentioned are the type of credit cards that are available to the public. The bank number of the card only identifies the card, which is then electronically associated by the issuing organization with one of the options is a bank account. The account number on a credit card is eight digits long. This identifies your bank account and that you are the main holder. The stripe on the back of a credit card is a magnetic stripe, often called a magistrate. The magistrate is made up of tiny iron-based magnetic particles in a plastic-like film. Each particle is really a tiny bar magnet about 20 millionths of an inch long. The stripe can be written because the tiny bar can be magnetized in either the north or South Pole direction. If you feel the black stripe on the back of the card it could feel like a cassette tape. There are three tracks on the black stripe. Each track in less than one tenth of an inch wide. The first track is two hundred and ten bits per inch. The second track is seventy five bits per inch. And for the third it is exactly like the first track with two hundred and ten bits per inch. There are two types of cards that can hold money one is a credit card and the other one is a debit card. A credit card has money that you do not have in your bank account yet and the debit card is the money that you have and are able to spend right away. If you apply for a credit card the business will have insurance plans just in case your card gets stolen and the person who stole your credit card makes payments on the card without your knowledge. Apr stands for Annual Percentage Rate for credit cards. The annual rate that is charged for borrowing that is expressed as a single percentage number that represents the actual yearly cost of funds over the length of the loan. It includes any fees or additional costs associated with the bill. With the credit card percent it is times per month 12 months’ times by whatever your percent is for that credit card business company.
It seems that now days everyone has accessibility to a credit card. However the question is do they know the pros or cons to having a credit card. Not many people understand the real concept of a credit card, especially young college students. There are several reasons why people should own a credit card, but if the person does own a credit card they should know the disadvantages of having one. Owning a credit card can help people in case of emergencies. When one doesn’t have access to money a credit card can help with unexpected healthcare cost, job loss, or auto repair. Credit
Hooked on Credit Cards Credit card companies love to extend credit to college students. You see ads for these cards on campus bulletin boards and also on the Web. Why do companies market their product to a population that has no job and lacks a substantial credit history? They seem to be trying to hook us on their cards; unfortunately many of us do get hooked on a cycle of spending that leads to financial ruin. Banks require applicants for a loan to demonstrate a good credit history and some evidence…
Citibank is among the top four (4) credit card companies in the United States. In May of 2011 their computer system was hacked into. Roughly 200,000 thousand customers had their personal information compromised. Unfortunately, Citibank did not feel they were ethically required to notify the cardholders of the breach. Several weeks later, and issue of the Financial Times, published an article disclosing the events of the compromise. The release of this information forced Citibank to acknowledge…
Credit Card Debt and the College Student By Danielle Wyman October 23, 2011 COM 156 When you think of credit cards, do you think easy access to money or incurring more debt? Some say that credit cards can help build your credit score which will help with future purchases like a car or home, but more often they help cause debt that you cannot afford. Credit cards can also help you acquire more debt adding financial burdens that increase stress levels. Of all people college students do not…
Credit Cards - Check your Statement!!! Annual Percentage Rate (APR). A measure of how much your debt is costing you. Expressed as an annual rate of the amount of interest you would pay annually. The higher the APR, the more money that will come out of your pocket. Minimum Payment Due The amount of money you must pay on your credit card each billing cycle to remain in good standing with your creditor. Usually covers the finance charges and fees for the month plus…
How to avoid credit card Debt Credit card debt is a big problem in the United States today. The lending creditors are taking advantage of consumers, which pile up charges on their credit cards, to the point they are unable to pay of f the card at the end of the month. Consumers end up relying on the credit that is provided by the card issuer. It becomes a ‘means to an end’ and the worst kind of debt consumers can accumulate A Good way to cut down on credit card debt is, not to…
J.P. Morgan Chase Case Write-Up I. Case Summary The passing of the Financial Services Modernization Act of 1999 repealed the Glass-Steagall Act, and the rescinding of the 1956 Bank Holding Company Act. “The legislation spurred a flood of mergers and acquisitions” by permitting banking, insurance, and securities firms to be affiliated/associated with one another, as a result it became extremely profitable and advantageous for financial institutions to consolidate and diversify their holdings…
institution that do credit card offering and it highly focused on the market research and customization of credit card use and information technology as well b) It’s competitors are other large credit card companies, like BOA and American Express 2) Per the case study, what is one of their major strategies to grow profitably and compete? (list) a) Develop I/T as its core business b) Offer customized credit card based on customer research and new customer testing c) Create a model for credit card risk assessment…
American's Should Not Use Credit Cards American's Should Not Use Credit Cards Comp/172 April 25, 2011 Darrell D Hayley, M.DIV. American's Should Not Use Credit Cards Most people that live in the United States today have a credit card. It is actually very rare that an American does not own at least one credit card. Credit card companies make sure that you learn about credit cards at a young age, of course, they market them as a magical card that allows you to buy whatever you want and need…
the Card Credit cards are part of growing up. It all starts when you reach 18 and begin receiving numerous credit offers in the mail or now days via email. Credit cards seem like an unlimited supply of funds and a very simple way to get the things you want however, credit card debt is a big problem in the United States today. In “How to Take Control of your Credit Cards” author Suze Orman discusses how too many Americans are overusing their credit cards and…
Consumers used to be limited to options like payday loans or other existing credits. But since now banks are offering new similar products at lower interest rates (Wells Fargo`s check advance products) to consumers, it looks like substitutes are EXTREMELY HIGH and that payday loan companies will need to change their strategies in order to be able to compete. Reference: http://blogs.wsj.com/economics/2010/09/14/report-blames-big-banks-for-payday-loan-growth/…