Everything about credit cards essay
Define the product: A type of unsecured liability which is incurred through a short-term revolving loan facility. While, technically, all purchases made by credit card create a debt to the user, these debts typically do not incur interest until the grace period has expired. This allows the holder to purchase goods or services. Also the card is issued by a financial company giving the holder and option to borrow funds.
Purpose of the Product: To provide someone with money they don’t currently have so they can use as they please.
How is it used by a consumer: It varies depending on the consumer. Some people take credit card loans to buy things like clothes, furniture, and even cars. As well as consistently paying your bills on time.
Who uses it and what are the qualifications: People who have mediocre (300-629), decent (630-689), and excellent (690-720) credit scores use credit cards. Some credits cards have no qualifications but those card spending limits will be very low in comparison to those that do have qualifications. The higher the spending limit the more qualifications you have to meet. Usually the qualifications are good your credit score is. For instance a 720-850 credit score will meet most qualifications for credit cards. Most credit cards require good or excellent credit.
Types offered: Their are numerous types of credits card offered that come with various bonuses and spending limits. For instance the Chase Sapphire Preferred Card, Capital One Venture rewards Credit Card, Blue Cash Preferred from American Express, and the Bank America Cash Rewards Credit Card are some credit cards that are offered.
Interest Rate Setting:For instance Chase Sapphire Preferred interest rates are 6.24% to 23.24% Variable based on your creditworthiness and other factors http://www.wisebread.com/
Consumer Protection:MasterCard covers most items you buy with your eligible card if it is damaged or...