Although the loan is a service of a bank, you are probably aware that all banks have the ownership or possession of a credit card. For example, Barclays Bank, Barclaycard own, part of the Visa card, TSB, have their card trust, which is also part of the visa, while Lloyds, Midland and National Westminster and the Royal Bank of Scotland has a share in Access.
Credit cards are plastic cards issued to persons, not necessarily customers of banks, which are in front, the person's name, credit card number, expiration date. On the back of the card holder's signature and the basic conditions of the issue. It should be recalled at any time that this card is the property of the credit card company.
To obtain a card, a person must complete a form containing their name, address, marital status, employment and wages and many other facts so that the credit card company in May to assess its solvency and the credit limit should be given. Once the card has been issued, the holder of the use May (1) to withdraw funds from a bank or at the counter or by a dealer or (2) for the purchase of goods and services from any point of sale.
When the customer receives funds from a bank in May, it do so in the limit. This is considered a loan that attracts not only the costs of handling, but the current interest rate, which at the time of writing is somewhere in the region of 2 percent per month, between 25 and 30 for cent per year. The rate is often much more important than a loan or an overdraft.
However, with a credit card used to purchase goods and services, it is possible to get up about six weeks for credit, without interest. For example, when purchasing goods at the beginning of a month and pay by credit card, it is likely that the regulation should not be made until the middle of next month. This interest-free credit is very attractive for people who have gained control of the discipline of their expenses and pay their bills as they are incurred.
Not only the credit card can be used in shops, supermarkets, and so on, but in hotels and restaurants, when ordering goods by mail order. The card can also be used abroad, in fact, co-author has used his card quite extensively on vacation in Europe and is more than two months before the appearance on the amounts of the statement - very useful free credit extended.
The credit card companies get their profits from two main sources:
1. Interest on credit card holders who do not pay the amount due on the date indicated.
2. A charge for the retailer between 2.5 and 5 per cent on turnover. Thus, if a retailer present checks to the bank to credit his account for £ 10,000, and the agreement is a commission of 5 percent, then the credit card company will be at the end of the month to pass a direct debit £ 500 to the retailer the current amount.
In addition to credit cards, many banks are maps showing greater financial and automatically carrying more credit, insurance and other additional factors. These concessions may vary slightly from one bank to another.
Very many people use credit cards as a means of obtaining credit. Whether it is an acceptable way of borrowing is a subjective decision. In general, it seems that it is easier to obtain funds from a credit card company than a bank. This is apparent from the bad publicity through the media, suggesting that the credit card companies often lend money to those who can least afford to repay.
0 comments:
Post a Comment