Credit Cards

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Credit Cards
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How credit cards work.

• Credit Cards are issued to qualified customers.
• When purchasing with credit cards you have to
  sign or enter a pin.
• Electronic Verification system
• Pay the card company
• Monthly credit card statements

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History

• Edward Bellary used the term credit card eleven
  times in his 1887 book Looking Backward.
• Early Beginning from 1900-1946 oil companies and
  department stores issued their own proprietary
  cards.
• First bank card Charge it in 1946 by John
  Briggins.
• Next came The Diners Club Card Stared in 1950.
• In 1958 American Express enter the credit card
  industry.
• American Express introduced the first card made
  of plastic in 1959 (before cards were made from
  cardboard/celluloid.
• BankAmericard was established in 1959 later to be
  know as Visa

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Debt Facts

• 78 of American household have one or more credit
  cards
• American Credit card debt in 2008? 972.73
  billion
• Average credit card debt per house hold in 2008?
  8,329
• As of March 2009, U.S. revolving consumer debt,
  made up almost entirely of credit card debt, was
  about 950 Billion.
• In the fourth quarter of 2008, 13.9 percent of
  consumer disposable income went to service this
  debt.
• 76 percent of undergraduates have credit cards,
  and the average undergrad has 2,200 in credit
  card debt.

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Benefits

• Convenience
• Security (accident and health)
• Dispute protection
• Fraudulent charges
• Extended Manufacture Warranties
• Credit card purchase protection
• Bank overdraft fees and other related expenses
• Worldwide Acceptance

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Disadvantages

• It can become a loan
• Interest charges
• Damage credit rating
• More debt then you can handle
• Complicated terms and conditions
• Cost more than other forms of loans

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Credit Card Profits

• The credit card industry is the most profitable
  one in the United States with annual earnings in
  the 30 billion range.  Many people might be
  surprised to learn that a single credit card
  issuer -- MBNA -- earned 1.5 times more profit
  than McDonalds in 2004.  Citibank, another major
  credit card Issuer, earns more profit than both
  Microsoft and Walmart. http//www.bcsalliance.com
  /creditcard_profits.html