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They make money - by charging interest on customers outstanding balances every month - and in fees for sending payment reminders. That's how they pay their staff.
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Why do companies extend credit?
Companies extend credit to their customers for several reasons. One reason is financial. Companies make money from charging customers interest on their credit lines.
Which companies offer a green credit card?
Green credit cards can be found anywhere in which there is a option for green credit. However not many companies offer green credit cards because the company loses some money on the purchases you make.
If there is no assets who's responsible for credit card debt?
If a person dies and owes money on credit cards, the person who issued the credit cards loses. The merchant still gets his money. (The credit card companies make money by charging merchants a small fee on each transaction. They make interest. They lose money on deadbeats and deaths.)
How do credit card companies use a person's credit report...?
When a person applies for a car loan, mortgage or credit card, the lender determines if lending money to the consumer will be a risk. Credit scores are one way to help credit card companies make the decision to issue credit. To determine if that person should be given a loan or credit card (apex)
Why credit is expensive than cash?
Using a credit card is more expensive because the credit card companies charge retailers a percentage of each transaction - that's largely how they make their money.
What is credit card interest?
Credit Card Interest is basically the way credit card companies make money. They charge you interest for borrowing their money. But usually if you pay your bills on time and don't have any fees, they won't charge you any interest.
How can you find out what companies you owe money to?
PULL YOUR CREDIT REPORT
What are some companies that make it possible to get a mortgage with bad credit?
One of the best companies that make it possible to get a mortgage with bad credit is GE Money. They have an intrest rate of only 4.24%, and a max LTV of 60%. It lasts 24 months, and the arrangement fee is ‘£2,295.
What is the concept of credit interest about?
The concept of credit interest is that you have the incentive to repay the debt faster because the longer you take to pay it off, the more it will cost you to do so. This is how credit card companies make their money.
What is the procedure to obtain free credit reports from the three nationwide credit reporting companies?
In order to obtain free credit reports from the three nationwide credit reporting companies in the UK you would need to sign up to a trial with them online. The 3 companies are Experian, Equifax and Callcredit. You need to make sure you cancel your membership after the free trial if you do not wish to pay any money.
Where can low credit score loans be compared?
There are a number of companies providing loans for people with a low credit score. Sites such as gocompare and money will assist in comparing these companies.
What are some mortgage companies for people with bad credit?
Some mortgage companies for people with bad credit are "GE Money" and "Precise Mortgages". The interest rate for both these companies varies from 4,24% to 4,84%.
