| DETAILES ABOUT CREDIT CARD |
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Davy Dany
New Member
Cash: $ 1.70
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Joined: 02 Feb 2007
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| DETAILES ABOUT CREDIT CARD |
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Credit card debt is an example of unsecured consumer debt, accessed through ISO 7810 plastic credit cards.
Debt results when a client of a credit card company purchases an item or service through the card system. Debt accumulates and increases via interest and penalties when the consumer does not pay the company for the money he or she has spent.
The results of not paying this debt on time are that the company will charge a late payment penalty (generally in the US from $10 to $40) and report the late payment to credit rating agencies. Being late on a payment is sometimes referred to as being in "default". The late payment penalty itself increases the amount of debt the consumer has.
When a consumer has been late on a payment, it is possible that other creditors, even creditors the consumer was not late in paying, may increase the interest rates the consumer is paying. This practice is called universal default.
If the customer is carrying an amount of debt that is so high that it is over their credit limit, then they might be charged an over-the-limit fee of up to $39 until their balance is paid down to below their credit limit. This, too, may add to the consumer's debt.
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Wed Aug 08, 2007 6:11 am |
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stella12
First Time Poster
Cash: $ 0.20
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Joined: 10 Aug 2007
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A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user). It is also different from a charge card (though this name is sometimes used by the public to describe credit cards), which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged.
Stella
[deleted]
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Fri Aug 10, 2007 6:40 am |
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dstern
Contributing Member
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Joined: 18 Aug 2007
Location: UK
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very informative 
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Sat Aug 18, 2007 4:27 pm |
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