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If a bank agrees to take your deposit, they don't keep it all in the bank. Because only a small percentage of the bank customers will demand their money at any given time, a percentage of all deposits, called vault cash, is kept on hand. The rest is loaned out, so that it can earn interest. Some of this cash is loaned to credit card companies, so that they can finance the purchases their customers make, until the customer pays the credit card company back. Actually, most credit card companies are organized as banks, so that they are regulated in a different way than regular companies. Because of the way the American accounting system works, the more money that is owed a company or a bank, the more that the company or the bank is worth. Even though the debt may be uncollectable, it can still be shown as an asset on a balance sheet. So, the more money that the credit card company can loan out, the more money the credit card company is worth. (on paper.) This is why we are constantly receiving offers for credit cards, even if we have just declared bankruptcy.
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Who do I owe money to credit card or bank if I get a credit card?
You owe the money to the credit card company. Some credit card companies are part of banks or they allow their credit cards to be used through a bank, but they are specific entities in their own right.
What credit card companies offer credit card balance transfers?
The following banks offer credit card balance transfers: "Barclaycard", "MBNA", "Llyods", "Natwest", "Royal Bank of Scotland", "Virgin Money", "Halifax", "Tesco", "Sainsbury", "Fluid card", to name a few. Most of the companies listed also offer zero charge on balance transfers.
What is the difference in a debit car and credit card?
a debit card is used to withdraw money from your personal account while a credit card is money that you use from the banks account that does not belong to you and you to pay it back.
What are some of the companies that offer the best secured credit card?
Some of the companies that offer the best secured credit card, would be Visa and Mastercard. In terms of who offers the card, the most secured would be those issued from banks. Whether it is a Chase Visa or a Citibank Mastercard, the banks safeguard their consumers.
Why do banks provide their credit card for us how can those credit card help their banks?
credit cards are the facility given by the banks for helping customers. by credit card you can perchase any thing with in the limit of credit card. like if u have a credit card of limit 60000 then u can use amount in advance though u don't have money in ur account (but u have to pay the money within 52 day(it vary from bank to bank)).on tht bank offer 1% or higher rate of interest.
Where to get a credit card?
Banks and credit card companies i guess
Who do I owe money to credit card or bank if I get a credit card?
You owe the money to the credit card company. Some credit card companies are part of banks or they allow their credit cards to be used through a bank, but they are specific entities in their own right.
Were does information containded in a credit report come from?
Information in a credit report comes from banks, mortgage lenders,credit unions, credit card companies, insurance companies, landlords, department stores and employers.
What companies are credit card providers?
Companies that provide credit cards tend to be banks. In the United Kingdom, for example, Barclays, NatWest and Lloyds banks issue credit cards. These banks also offer debit cards.
What credit card companies offer credit card balance transfers?
The following banks offer credit card balance transfers: "Barclaycard", "MBNA", "Llyods", "Natwest", "Royal Bank of Scotland", "Virgin Money", "Halifax", "Tesco", "Sainsbury", "Fluid card", to name a few. Most of the companies listed also offer zero charge on balance transfers.
What is the difference in a debit car and credit card?
a debit card is used to withdraw money from your personal account while a credit card is money that you use from the banks account that does not belong to you and you to pay it back.
What does APR stand for in reference to a credit card?
APR stands for annual percentage rate in reference to a credit card. An annual percentage rate is the rate companies or banks charge when one uses a credit card.
What are functions of debit and credit cards?
Credit cards are issued to customers of companies who offer lines of credit. The card can be used to make purchases or payments in stores and online. Debit cards on the other hand are issued by banks or prepaid debit card companies. They have the same role as a credit card allowing consumers to make payments or purchases in stores and online, but can also be used to withdrawal money from an ATM.
Is hsbc a good credit card provider they are telling me they have to run my credit to get a limit increase is this normal I have had the card for 7 months never late payment never went over limit?
Banks and money lenders use credit companies to 'guess' your credit rating and your ability to repay any money advanced. If you have never taken out a loan or borrowed money your credit rating will be low. Most large companies, such as HSBC, are reputable. That does not mean you cannot get a better deal elsewhere
What are some of the companies that offer the best secured credit card?
Some of the companies that offer the best secured credit card, would be Visa and Mastercard. In terms of who offers the card, the most secured would be those issued from banks. Whether it is a Chase Visa or a Citibank Mastercard, the banks safeguard their consumers.
Why do banks provide their credit card for us how can those credit card help their banks?
credit cards are the facility given by the banks for helping customers. by credit card you can perchase any thing with in the limit of credit card. like if u have a credit card of limit 60000 then u can use amount in advance though u don't have money in ur account (but u have to pay the money within 52 day(it vary from bank to bank)).on tht bank offer 1% or higher rate of interest.
What do credit card companies look at when issuing credit?
1. Your income 2. Your spending patterns 3. Your previous credit history (With other banks & credit cards)
