Credit Card Scam

Finance Director gives expert advice on the hidden cost of using credit cards, and how to avoid paying sky high interest! Please Note: This video does not in any way constitute personal Financial Advice - just very useful general principles!



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The history of credit cards

Credit Cards Replace Paper Money

A credit card is a small piece of plastic, rectangular paper is no thicker than a sheet if it can not be folded. Initially credit cards were metal marks in the form of coins, then they changed sheets, and then celluloid plastic with fiber and now perhaps a photo of the holder and a magnetic strip on the reverse side contains sensitive information, such as a personal identification numberNumber allows the card to be used money machines at (ATM's) and merchant establishments.

What is meant by "credit"?

Credit is the system of buying some produce or services without paying transaction costs for them at the time. The payment amount is made at a predetermined later time with the addition of a charge on the bill. It's like someone borrow money to something without actually gives them money, but buy theby them the product they want to buy. So, the system of credit is not new, the human race, in fact, is as old as civilization itself or perhaps even older. The entrepreneurs of the inhuman kind have been proclaimed responsible for identifying human needs and wants as a rollicking business, and so they invented the credit card system. Although many dispute, Diners Club is credited to 1950 will be the ones in to invent, the credit card.

When were Credit cards invented?

In contradiction to the theory 'The Diners Club' started the credit card system, the Encyclopedia Britannica records the origin of credit cards in the United States far back as the 1920th During this time, companies like oil companies and hotel chains started issuing credit cards to their regular and valued customers, the services were free to use them and pay them at a later date. This> Cards were only useful for purchasing goods and services from companies and institutions that issued the card. However, credit references such as Europe have been found as early in 1890 in. the late 1930s that companies started accepting each other only in credit cards-and that's when things get complicated for accountants began.

Computer supported the use of credit cards

In the beginning there was no Computers, the transactions of the credit card and the process of verifying the credit card was the index is done manually through a regularly updated credit card like a phone book. This system was time consuming and tedious and provided many loopholes for credit card fraud. Today, with computerization, use of a credit card is instantaneous. All that one has to do is to swipe the> Card through a slot machine and the amount entered. When completed, it is appropriate funds in the account of the holder of the transaction and made the customer a month later charged. Usually credit cards allow a 50 days free credit period. If the outstanding bill that is paid for time while the customer does not pay any interest on the transactions, otherwise there is a whopping 2.9% per month on the invoice.

Who is the CreditCards?

Banks and financial institutions are the main promoters and issuers of credit cards. The invention of the first bank issued credit card credited York John Biggins of the Flatbush National Bank of Brooklyn in New. That was 1946 and the years to come Biggins not to know the date, at times he had the world came to an idea so that the loan would be by storm in. From this first credit card called "Charge-It" ManyCards are cards that flooded the market, as the all famous "American Express and Diners Club credit card credit cards. The Bank of America has the BankAmericard in 1958. This map is now known as the card "visa". were about the same time the popular MasterCard. These are the two predominant cards used today. began the era of plastic money.

And Then There Were None - High Finance ripoff takes down the top 5 investment banks

to fall The first of the top 5 investment banks Bear Stearns was in March 2008. Founded in 1923, shook the collapse of Wall Street this symbol to the world of high finance. By the end of May, the end of Bear Sterns was complete. JP Morgan Chase bought Bear Stearns at a price of $ 10 per share, in stark contrast to its 52 week high of $ 133.20 per share. Then came September. Wall Street, and the world watching, while a handful of days, the remaining investment banks on theTop 5 list tumbled and the investment-banking system was declared broken.

Investment Basics

The largest of the investment banks are big players in the realm of high finance, helping big business and government to collect money through means such as trading in securities in both the stock and bond markets as well as professional advice to the more complex aspects of high finance. Among these are such things as acquisitions and mergers. Investment banks also handleTrading of a variety of financial investment vehicles, including derivatives and commodities.

This type of bank involvement in investment funds, hedge funds and pension funds, which is one of the key ways in which what happens in the world of high finance can be felt by the average consumer. The dramatic crash of the remaining top investment banks affected retirement and investment not only in the United States but also around the world.

The High Finance ripoffThis led her down

In an article titled "Too Clever by Half", 22 September 2008, published by Forbes.com offers the Chemical Bank Chairman Professor of Economics at Princeton University and author Burton G. Malkiel is an excellent and easy to follow breakdown of what exactly has happened. While the trigger for the current crisis was the mortgage and lending meltdown and the bursting of the housing bubble, are the roots of what it calls Malkiel in the fraction of the bond betweenLenders and borrowers.

What he refers to is the transition from the era in which a bank loan or a mortgage from a bank or lender has been made and held by such bank or lender. Of course, as they were held on the debt and the associated risks, the banks and other lenders rather cautious about the quality of their loans and weighed the likelihood of repayment, or by the insolvency of the borrower carefully made against the standards that make sense. Banks and lenders moved away from this model, to what Malkiel calls a "come and distribute" model.

Instead of holding mortgages and loans, "mortgage originators (including non-bank) loans would hold only until they could in a series of complex mortgage-backed securities packaged into different segments or tranches with different priorities in the right to receive broken payments from the underlying mortgages, "with the same model is also used other types of loans as to credit> Card debt and auto loans.

As these debt-backed assets were sold and traded investment world has been increasingly leveraged them with equity ratios are often as high as 30-to-1. These machinations are often found in a shady and unregulated system, the so-called shadow banking system came. Since the degree of leverage increases, so too the risk.

With all the money to be made in the shadow banking system, lenders became less selective about whothey gave in loans, since they believe that more loans or the risk was, but it bit by bit, to repackage and sell them at a profit. Crazy terms became popular, no money down, no docs required, and the like. Exorbitant exotic loans became popular and lender controlled the depths of the sub-prime market for still more loans to make.

Finally, the system almost ground to a halt with the fall in property prices and increased loan defaults and foreclosures, withLenders make short-term loans to other lenders afraid to make loans to such increasingly leveraged and illiquid entities. The decline in confidence could fall, stock prices, as the last of the top investment banks are seen drowning in fear shaky debt and investor.

September has failed Lehman Brothers, Merrill Lynch choose takeover over collapse and Goldman Sacs and Morgan Stanley retreat to the status of bank holding companies, with potential buyouts on the horizon. Some of theThese investment banks back nearly a century, dates and others, such as the 158-year-old Lehman Brothers. Quite an inglorious end for these historic giants of finance, through a system of high finance trickery and shady dealings, a system which, as it falls apart, even by the end of May to pull destroyed the economy of the entire world.

How to Avoid Credit Crunch

The credit crisis will be hard for many people. Together with rising prices, there is the possibility of losing your job and not in a position to electricity bills or a mortgage to pay. These are very aspects of the credit crisis and hopefully tunnel is to help you see some light at the end of long des

tighten in these times of financial distress and general monetary policy belts, many people are looking around to find sources of income. Reduce costs and increaseYour income - that is the simple-sounding answer to the credit crunch problem.

can reduce costs by at power everything from your pay-TV and telephone, switching gas and electricity suppliers to achieve a cheaper provider. Shopping at lower prices, supermarkets and clothing stores. Cooking more meals to take away in payment rather than the high prices of food and restaurants.

Rising incomes may not be as easy as asking for a raise. In these leanTimes, companies are also suffering and paying a higher wage bill is not at the top of their agenda.

Another way to increase your income look set up your own business is part time, if you are already a full time position. If you are not currently being used, then you can do a lot of your time to start your own business to devote the project to.

Starting a business, if there is such turmoil in the economy and the financial markets may seem, some bizarre, but theTruth is that it always want things, people, if there is a recession or not. If there is a recession, then people will be harder for bargains and information they may seek help through these turbulent times - this is where your company could be born.

Offer your customers what they want and in times like these they want goods, services and information at competitive prices. Offer your customers what they want in times like these and you have a company be established towill build up very quickly.

Totally Free Credit Report - 3 Reasons Your Credit Score Now Get

If you online for a completely free credit report is to understand very important to use some of the reasons why you really need now to get your credit score right before your eyes, so your business guests can your for the good. Let us now take a good look at three such reasons.

1.If lenders about your financial history one of the most important aspects they look for first hits your FICO score is. She says in a cold, hard business sense, as the currentAre you paying your bills and loans. This allows them to give you a bigger deal to lower interest rates.

2.Purchasing a car - in the search for a new or old car of your credit score has an effect as far as what kind of bargaining power you have to buy the car of your dreams. Also, your guests will come in handy if your just looking to lease a car instead of buying it coming.

3.Purchasing Home - This is actually the most important reason to stay, your bills and current Keep your credit score high. Buying a house is actually the first reason is that FICO scores actually put into use. The banks were originally simple way to check customs one if your credit card and you were reliable, they give you as much as a good-sized loan. With credit like this, banks can now give themselves the best percentage of picking the most reliable consumer-making process.

These are three of the main reasons why more and be your top> Credit situation. This way you can fall for a loan on a house, would you now say we need for a 5% mortgage rate rather than wait six months later find out that your credit rating has fallen because of a missed Bill rate and your mortgage is now changed to 6%. Always have the knowledge of your financial situation on hand credit just in case there is a good deal is available now that you know want to overthrow, to

What is a Bad Credit Loan?

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What to do with credit card collectors

If you've lost your job, through no fault of your own, and are behind on your credit card bills, a good prank to piss off the collectors is in this video. It may not make the hogs go away, but it will make you feel better for a few hours, and your freinds will laugh their asses off when you tell them what you've done.



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