Slide MGT312 Slide05

Credit Cards and Consumer

Credit Cards and Consumer

Loans

Loans

Types of Consumer Credit

•Installment (closed-end) credit is the type in which the borrower must repay the amount owed plus interest.

•Noninstallment (open-ended or revolving) credit is a single payment credit.

•_{The latter extends the credit in advance of}

Credit Card Accounts

•Credit cards allow the holder to pay the balance either in full or carry over a

balance.

•If the balance is carried over, a minimum payment must be made each month to

Types of Credit Card Accounts

•Bank credit cards.

•_{Retail credit cards.}

Common Aspects of Credit

Cards

•Teaser rates.

•_{Default rates.}

•Variable interest rates.

•Preapproved credit card offers.

•Annual and transaction fees.

Common Aspects of Credit

Cards (ctd)

•Credit card insurance