A plastic money card is a thin card that contains identification information such as a signature or picture, and authorizes the card holder to charge purchases or services to the card holderās account. Today, the information on the card is read by automated teller machines (ATMs), banks, and the internet. It all started in the 1920s, when individual companies (such as oil companies and hotels) issued these āplastic money cardsā for purchases made at their businesses. However, these cards could not be used outside of the company. In the 1950s a āuniversal cardā was introduced by Diners Club, INC. This was when credit cards were made. These cards allowed the card holders to use the cards in various locations and businesses. The way the cards worked was that there were annual fees, and depending on the plan, the card holders were billed either monthly or yearly. Later on the ābankĀ Continue reading
Personal Finance Concepts
Types of Credit Cards
There are many types of credit cards which are used by different types of customers and account holders. Mostly business personnel use credit cards which are convenient in their use and which suit businessmen. Similarly students would use student credit cards and a layman will use general purpose cards. There are some most used types of credit cards. For example Interest Credit Cards are mostly used by businessmen and company CEOs because there is a charge of interest if credit card payment has not been annulled in time. Another important and commonly used type of credit cards is those in which 0 APR (Annual Percentage Rate) is charged as its introductory price similarly cash cards are also used which are just like cash but in the form of plastic card. It is because the cash card holder has paid the cash price of that card and he can use itĀ Continue reading
An Overview of Credit Card
Credit is a method of selling goods or services without the buyer having cash in hand. A credit card is only an automatic way of offering credit to a consumer. A credit card is basically a plastic card with a magnetic strip invented with the intention to simplify the complicated banking process for an individual in case he/she is short of cash, be it something casual like shopping or something severe like an emergency situation. The dictionary defines a credit card as āA card which can be used to obtain cash, goods or services up to a stipulated credit limit. The supplier is later paid by the credit card company which in due course is reimbursed by the credit card holder who will be charged interest at the end of the credit period if money is still owing.ā The word credit comes from Latin, meaning ātrust. This means that usingĀ Continue reading
Commercial Credit Analysis: Sources of Repayment
The main concern that a banker has when facilities are extended is on the repayment of the monies advanced. This is the question that he will invariably zero in on and it would be prudent for the prospective borrower to advise him upfront on how he intends to repay the facility. In ideal circumstances there should be more than one source of repayment so that should there be, for some reason, a delay or a problem, the repayment commitment can still be honored. Bankers too, if presented with a well structured plan/ plans of repayment would be more willing to listen and even advance facilities. Primary Source: The primary source of repayment should be directly related to the kind of loan given i.e. for facilities extended (overdraft) for working capital or to finance trade the repayment should be from the proceeds of the goods sold. If a bridge loan priorĀ Continue reading
Advantages and Disadvantages of Credit Cards to Students
In this modern era with the rising of e-commerce in the world, the usage of credit cards is getting popular among the world nowadays. The usage of credit cards has actually spread towards college students and has increased visibility. Meanwhile, this is the best chance for the credit card companies to put on target at college students because college students are expected to have higher earning power and this makes the credit card companies believe that as a desirable market. A credit card can be best defined as a small plastic card issued by the bank to the consumers to purchase goods and services in advance with a credit limit on the spending. With a credit card, the users are able to purchase goods without using cash. Users will have the ability to use it as online payment on the internet and use it as monthly installments for large-volume goodsĀ Continue reading
Positive and Negative Effects of Debt
Debt can be viewed as good and sometimes also can bad too. Debt makes people and organizations that they would not allowed to do. All this while, people use it to purchase houses, cars, and others things with their cash on hand. With the debt, they can spend as much as they want on expensive things. Besides, for those companies also use the debt as to influence the investment made in their assets. This influence of debt is considered as an important part in determining the riskiness of the investment. As we know that, the more the debt per equity, the more risky we will face. The increased of risks will bring some bad effects to organizations as well as individuals. As for individuals, the cost of servicing the debt can grow beyond the ability to pay due to both external events and this cause their income loss. And thereĀ Continue reading