Credit Cards Companies Marketing On College Campus

Appendix B Credit cards companies should be on campus marketing to college student. Credit cards companies should go to campuses and have a discussion on the rights to full accurate information. Right under the equal credit opportunity Act, Characteristics: such as race,sex,marital status, religion, age, origin. However, it’s not against the laws to day to deny credit based on income and credit history. Once it was common for women to be denied credit, many women were without access to credit at all. Today, lenders can’t consider either marital status or gender; it’s much easier for women to obtain credit and establish a credit history than it once was. Equal credit opportunity Act prohibits lenders from requiring financial success in knowing how to manage consumer credit advantage and disadvantages allows you to spread the cost of more purchases. Advantages-Buy now, pays later, this type of advantage as long as you can afford payments without sacrificing other worthy financial goals, cash vs. credit. Disadvantages: are overspending, higher premiums, and pay more than the purchase, difficulty in purchasing a home because high consumer debts.. The more you borrow the worse your liquidity and debts ratio look. Bad credit hurts more than your ability to get a loan. Employers and landlords check your credit before during business with you. Types of credit are Open-end credit also, called revolving credit is not earmarked for a particular purchase and the payment period is not specified in advance. Instead, the lender preapproves an amount of credit called a credit limit, or credit line. Meaning, you can use your credit and much as you want to until you reach your credit limit. Open-end lines of credit are credit cards, such as Visa. MasterCard, are examples of this type of credit. Personal loans, home equity lines of credit, and other delayed-payment arrangements offered by retail and government service providers (e.g., utility companies) are also open-end credit arrangements. Credit-end credit: Purpose for this type of credit approval is for a specific purpose (television or a car purchase). It must be paid with interest either in a single payment or in installment agreement, often called a consumer loan. Payments are paid with equal payment per period ending in a specific time. Consumer credit is when you use credit for personal needs such as credit card accounts,automobile,home equity, and student loans. Paying interest that are higher than what you can earn on your savings. If you pay 18 percent interest on credit card and you’re earning only 5 percent on a saving account, you are better off taking the money from saving than borrowing the funds for the purchase. Sometimes, though, consumer loan rates are lower than the rate you’re earning on your invested dollars, making it preferable to borrow. Based on the information in their files, credit bureaus classify individuals according to their credit risk, commonly using a credit scoring system such a FICO system developed by the Fair Isaac And Company. This system and others use statistical models to calculate your probability of repayment. Each system weights factors differently, but the FICO system scores each person 300 to 850, based on payment history (35 percent),.debt ((30 percent). length of credit history (15 percent), variety of debt sources (10 percent), and recent credit history (10 percent). A score of 700 to 800 is considered good. If your credit score is too low, you can use one or more 0f these methods to raise it.