The Credit Card Market

When Jalessa decided to get her first credit card at 21-years old, her application was denied. Her credit report revealed that she had payments in default due to identity theft.

It is imperative that young adults comprehend the facets of obtaining and maintaining proper credit in order to sustain a sound credit history. For example, the most widely used credit score is Fair Isaac Corp.'s FICO score, which ranges from 300 to 850. A FICO score of 760 or higher reveals an individual’s respectable borrowing power, for even a recently reported late payment can have a substantial effect on a credit score (Holmes). In addition, young adults can learn the importance of securing proper credit and increase their attractiveness in lender’s eyes by aiming to use less than 20% of one’s available credit (“Get”). Since lenders pay close attention to the amount owed on credit cards relative to the limits provided, lenders are able

Consumers use credit cards for numerous reasons. Those reasons are: the earning of cash back, safety, points and frequent-flyer miles, universal acceptance, and to build credit (Investopedia.com). Credit cards can allow for cancelations a payment on a service that did not meet the expectations of the consumer, which is really beneficial. However, consumers own a few too many credit cards that all have different interest rates. The reason credit debt is so astronomical, is because consumers are paying the required minimum payment

The stories of people’s lives ruined because of either ignoring or poorly managing their debt is common and are heart breaking. I did not know about this reality until I took Financial Management, and I know to use them not for recreational uses, but for emergencies. Have a relative that needs an operation? Use a credit card to pay it off quick, but remember to pay as much as possible for the monthly plan or else you will be paying more than you spent. Being careful is not a prominent trait for most teenagers. It is the stage of life where they want to experiment and try anything without thinking of the consequences, like impulse buying. Just knowing the possible outcomes for using a credit card would prevent some people from ruining their life from credit card

As people get older, everyone tends to apply for credit. It is much simpler and easy to make larger purchases. Although, strict actions must be made, it is a full time responsibility and you must have the independence, organization and knowledge to receive credit. To use credit wisely, it is smart to first know what you are getting yourself into. Ask family members, friends, or financial institution any question you may have. Receive all the information you need before receiving your credit. Also, make sure that you are willing and financially able to pay back any money, plus interest and fees that may come from a credit card. Make sure that you will not be behind on paying bills, or be irresponsible with how you are managing your credit. A time I used credit wisely, was when I wanted to purchase a very expensive Michael Khors purse from their new collection.

When President Obama signed the Credit Card Act of 2009, this put an age limit on people getting a credit card till the age of 21 years and I think this is a genius idea. This bill was had to be passed to protect young teenagers from being exploited by the credit card companies. Before this act a teenager could get a card and buy everything they wanted for example the new jordans or nike shirts like everybody else who can afford it, but most teenagers “Know little to nothing about managing money”(CreditDonkey). This means most teens would spend money that they do not have so the credit card companies can charge them interest rates and put teens into debt. With this Credit Card Act in place a teenager can still get

Once payment in full was received, the consumer took the goods home. Thus, if the consumer did not have the money, they could not purchase the goods. However, during the boom of the late 1990s the number of households with a credit card was significantly higher. In 1998 the number reached 68% (Durkin, 2000). By the late 1990’s, any college kid with the hope of becoming an educated contributor to the workforce could get a credit card with at least a $1000 limit. Personally, my first credit card had a $1000 limit and did not require my parents to co-sign. I got it in 1996 as a freshman in college.

Banks are to blame for a large contributing factor of student debt, which is consumer debt for students. Like many people, students will turn to credit cards when they are unable to pay for textbooks or their meals for the rest of the week. Credit cards are seen as a safety net in any financial emergencies. According to “Generation Debt: The Dirty Business of Deregulated Credit”, “In addition to ramping up their marketing efforts during the 1990’s, the credit card industry has also gotten much more

Another reason credit cards are part of our economy is American’s consumer mentality. To understand America's consumer mentality the textbook as the reader to look at the advertisement a typical American would see in a day (Kornblum and Seccombe, 2017). Big corporations publicize the importance of their product; thus, convincing the reader that the item is a "must have." This "must have" mentality please individuals to spend the money that he or she does not have by using credit cards. Consumerism is the main reason why credit cards are part of our economy. Credit cards are not only part of our economy, but also cause a social problem. The root of the problem is individuals spending money they do not have. With increased use of credit cards there has been a substantial rise in unpaid debts and personal bankruptcy. Credit cards have payment deadlines and when those deadlines are not met, the monetary amount owed increases. For example, a man bought a very expensive item with his credit card. The man cannot pay his bill and thus he owes more

Whilst a critical part of consumer spending, credit card companies are constantly accused of malicious legal contracts and schemes to increase profits. Without heavy regulation, these companies have the power to bankrupt millions of Americans that rely on credit cards in their daily lives. However, after the introduction of The Credit Card Act of 2009, these accusations represent an inability to accept responsibility for financial blunders on the consumer’s behalf. Due largely in part to the government’s strict regulations, credit card companies should not be at fault for the student credit card debt crisis. Credit card companies remain blameless for student credit card debt as a result of

According to Investopidia, a credit card is a card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. A credit card allows people to borrow money to make big and small purchases. As long as the money borrowed is paid within the grace period of 25-30 days, the individual does not have to pay extra. If it is not paid back in that time period, the individual will have to pay interest which is more money on top of what has been borrowed. While some people argue that credit cards are a great way for teens to learn how to be responsible with their money, others think that this is a bad idea. Teens are known for being reckless and without oversight can get in a lot of trouble for not properly managing debt and learning what it is. A credit card for teens is detrimental.

5. The advice I can give concerning the use of credit cards and the fees they charge would you provide to a young adult planning on getting a credit card I would tell them that credit cards is good to have for emergencies (ask ville2013). Most teens manage to get through those years without permanent damage. If they don't, it is generally because of three things: addiction to tobacco, substance abuse or alcoholism and misuse of credit cards (ask ville2013). In my conclusion many credit card companies are targeting the consumers with not so good credit and offering their rates so high that it will take those years to pay the balance off. Consumers should only use credit cards for emergency purposes only. Also consumers should also think about paying off the interest off early as possible. For routine purchases you can use a debit card, which draws money directly out of your checking account. When there is no more money, the card stops working.

Growing up with parents who didn’t know much about money put me in a position where I had to learn how to be financially responsible at a young age. Before my 18 birthday, I wanted to open my own checking account and eventually a credit card in my name without any cosigner. With this in mind before my 18th birthday, I research every bank from big banks such as Bank of America to little credit unions like Arizona Federal. I learn about the fees, how to avoid them, the advantages and disadvantages of a big bank and credit unions, credit reports, the different type of credit cards available and what the best way to obtain them is. Then at 18, I opened my first bank account and subsequently a credit card a couple months later all without a cosigner. With the knowledge I have obtained in my journey, I know I would be an excellent fit for the company and looking forward to working with the team, and ready to educate the public about finances.

The credit card authorizes the holder to charge goods and services that they will later be billed for. The credit card came into being in the 1920’s when hotels and gas companies made them available to customers for use in their establishments. Next, in 1950 the Diners’ Club, Inc. card was introduced which allowed for customers to use the card at a variety of businesses. Then in 1958 the American Express Company offered a card that billed its customers on a periodic basis, usually monthly and also charged an annual fee for its use of credit and

Nowadays credit cards are the preferred method of payment all around the world. Whether you’re buying fruits at the market to TV’s at the store, credit cards can be used to purchase almost anything you can imagine. But, like most things credit cards also have advantages and disadvantages that come with using them. Such as how easy it is to accrue credit card debt which affects your credit score. Some advantages that come with a credit card include building up your credit score, keeping your cash safe in case you lose your card, and reward programs.